Kuala Lumpur, 14 February 2023 – Yayasan Usahawan Malaysia (YUM) is looking forward to special allocations and incentives that are much needed under the revised 2023 Budget to help small and medium enterprises (SMEs) to further spur the local economy.

“We welcome Prime Minister Datuk Seri Anwar Ibrahim’s initiative to put SMEs as one of the main focuses in the revised 2023 Budget. We have yet to cross the 100 days of the current unity government, nevertheless we have seen a hive of activities, in wanting to uplift the lives of the rakyat and spur further growth engines” said Nitesh Malani Chairman of YUM.

Nitesh Malani D.J.N., P.P.N. Founder, Yayasan Usahawan Malaysia, MyPreneurship

Move Towards Automation and Digitalisation

He said the government must find ways, such as giving incentives and grants to help SMEs increase their output, and move towards automation and digitalisation. “Some of the SMEs, especially in the manufacturing sector, are still functioning in semi-automation. With easing of foreign worker recruitments and processing, we will see further good-will factor amongst industry players.”

“If the government can give them a special grant with zero interest for them to move towards fully automated development, it will help them upscale significantly,” said Nitesh.

For 2023, the Malaysian economy is expected to expand at a more moderate pace amid a challenging external environment. Domestic demand will continue to drive growth, supported by the continued recovery in the labour market and the realisation of multi-year investment projects. The services and manufacturing sectors will also continue to support growth.

Meanwhile, the slowdown in exports following weaker global demand would be partially cushioned by higher tourism activity. The balance of risks remains tilted to the downside, mainly from weaker global growth, tighter financial conditions, re-escalation of geopolitical conflicts and worsening supply chain disruptions.

Nitesh added that if more companies were able to be fully automated, they could achieve a higher output, which in the long run would boost not only the local economy but be able to position Malaysia as a high tech nation within the region.The Prime Minister had announced that digital advancement, small and medium enterprises, and the green economy would be the focus of the revised 2023 Budget. He said those were among the initiatives that would be given a boost in the Budget, given their importance and potential.

Establish Malaysia As Preferred Investment Destination For The Region

“There must be special allocations and measures in Budget 2023 to attract foreign investors, especially from China, India and ASEAN as a whole. Prime Minister Datuk Seri Anwar Ibrahim has proposed for the Asian Monetary Fund (AMF) to be revised to strengthen the buffer against economic crises. With this idea mooted in Bangkok during his recent visit, we see this region and Malaysia positioned as an ideal destination for Entrepreneurs.” said Nitesh.

He said that as the Chinese international border has reopened, Malaysia must immediately capitalise on it by offering tax breaks and other benefits to further appeal to regional investors to choose Malaysia as an ideal destination. This will allow more robust growth not only for SMEs but economy as a whole. With the reopening of (Chinese) borders, not only tourists but also investors will flood destinations around the world.

“We need to have special measures in place so that Malaysia can be the preferred investment destination for the region, which would then help our SMEs to flourish. By capturing these foreign investors through the assistance provided, Malaysia would be able to be the regional hub that local SMEs could benefit from”

“When they (foreign investors) come here, they will need our resources and labour. And these can be provided by our SMEs,” said Nitesh.

He added that the most sought-after sector that investors would be interested in would be green technology; hence, he called for the government to also allocate for the sector. To assist local SMEs, he said the government must also consider improving the tax incentive to encourage the growth of businesses.

YUM is in collaboration with various government agencies and trade organisations locally and in the region, as well key industry influential on an initiative that will be a platform like no other that will be focused on SMEs and Entrepreneurs growth and sustainability in the region scheduled for October in Kuala Lumpur.

More details will be revealed at the prestigious SEBA 2023 themed UNITY in Penang which will be Unity Celebrating Entrepreneurs that will be graced by the governor of Penang TUAN YANG TERUTAMA TUN DATO’ SERI UTAMA AHMAD FUZI BIN HAJI ABDUL RAZAK.

About Yayasan Usahawan Malaysia (MyPreneurship)
Yayasan Usahawan Malaysia (YUM) is a non-government organisation striving to gather, create and develop sustainable companies with solid entrepreneurship traits. The organisation builds credibility by serving as a platform that supports the development of companies across all businesses. It offers tailored programmers their best interests to ensure they can achieve their goals while sustaining core values.

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