Business groups hope for financial aid, incentives to cushion impact of global uncertainties
Business organisations in Johor hope Budget 2027 will continue to bolster the country’s economy amid global challenges and uncertainties.
Johor Baru City Businessmen and Traders Association president Roland Lim Chin Eng called on the Federal Government to reintroduce the Goods and Services Tax (GST).
“It was a mistake to replace the GST with Sales and Service Tax (SST),” he said when contacted.
The government effectively abolished the GST, which was introduced on April 1, 2015 by reducing its rate to 0% on June 1, 2025, before officially repealing the law and replacing it with the SST on Sept 1, 2018.
“There are around 176 countries worldwide implementing a value-added tax, which is similar to GST,” said Lim.
He said GST collection had averaged over RM60bil a year, ensuring a steadier stream of income for the country.
Johor Indian Business Association (Jiba) president P. Sivakumar urged the government to give incentives directly to business organisations.
He said regular outreach programmes should take place at federal and state levels to provide information on financial-related assistance available to micro as well as small and medium-sized enterprises (SMEs).
“Hopefully, Budget 2027 will include stimulus packages for micro-enterprises and SMEs to help them remain resilient in weathering uncertainties in the global economy.”
Sivakumar also hopes the government would provide funding for artificial intelligence (AI) training.
“This should be available in southern parts of Johor where data centres are being set up.”
He said upskilling and reskilling of the workforce was needed, especially with Johor-Singapore Special Economic Zone (JS-SEZ).
Johor Indian Muslim Entrepreneurs Association (Perusim) secretary Hussien Ibrahim said next year’s budget should help medium-sized food operators.
He said while it was commendable for the Federal Government to continue assisting hawkers, eateries and bistros also need similar assistance.
“Many of our members want to open more branches but they are facing capital constraints,’’ he said, adding that establishing a new branch required more than RM500,000.
Hussien pointed out that Indian Muslim restaurants were an important element of the country’s food and beverage sector.
Prime Minister Datuk Seri Anwar Ibrahim is expected to table the Budget 2027 in Parliament on Oct 9.
