KUALA LUMPUR: SME Corp Malaysia commended Budget 2019 for its broad-based approach and being very supportive of SMEs as the vital engine of growth for the national economy.
It said the SME development allocation in the Budget next year was very much welcomed as a further boost, especially in the areas of access to financing which would continue to be given an important emphasis, export promotion, entrepreneurship and various programmes under the SME Masterplan.
Based on the SME Input-Output analysis done by SME Corp Malaysia, it said the estimated allocation of RM17.94bil for SME development across all economic sectors was expected to generate an additional RM3.8bil of SME value-added in 2019, which is an increase of 0.3 percentage point in share of SME GDP to total GDP.
A total of RM17.94bil has been earmarked for SME development in 2019 under the Third Focus: To Foster an Entrepreneurial Economy. Among the key initiatives include financing, Industry 4.0, export, tourism, agriculture, entrepreneurship, human capital development and incentives.
According to the SME Annual Report 2017/18 released by SME Corp Malaysia, SMEs contributed RM435.1bil to the economy in 2017, with a higher GDP growth of 7.2% against 5.2% in 2016. As a result, contribution of SMEs to GDP stands at 37.1% in 2017, with overall employment at 66% and total exports at 17.3%.
This year, a total of 158 SME development programmes are being implemented for the benefit of SMEs, with total financial commitment of RM14.3bil.
Separately, accounting and tax consulting firm YYC & Co Group CEO Datin Yap Shin Siang said that as a firm that focuses on SMEs, they frequently received the common feedback that businesses have made errors in their accounts or audits.
“With the Special Voluntary Disclosure Programme proposed during Budget 2019, we look forward to helping our clients disclose their mistakes within the amnesty period.
This is an opportunity for businesses to reduce their penalty to as low as 10% (by 31st March 2019) or 15% (1st April to 30th June 2019), in comparison to the previous 45%. After June 30, 2019, the penalty will be increased to 80%-300% if caught. “I strongly advise and encourage SMEs to seize this opportunity to make things right,” she said in a statement.