KOTA KINABALU: There is a need to align Sabah’s small business registration framework with the Companies Commission of Malaysia (SSM) to unlock access to federal funding, boost business credibility, and ensure fair economic inclusion with Peninsular Malaysia.
In making the call for this alignment, the Sabah Association of Professional Accountants (Sapa) President Datuk Tan Kok Liang said currently, many micro and small enterprises in Sabah operate solely under municipal-issued trading or operating licences.
This fragmented system puts local entrepreneurs at a structural disadvantage compared to businesses in the peninsula, which are formally registered under the Registrar of Businesses (ROB) governed by SSM, he said.
“There’s a fundamental mismatch in legal and commercial recognition,” he said after a recent courtesy visit to Mohd Arif Bin Hamzah, Director of SSM Sabah.
Tan said that while trading licences serve a local function, they do not carry the national-level weight and legal benefits that come with registration under the Registration of Businesses Act 1956 [Act 197].
“This limits access to funding, market expansion, and overall growth potential,” he said.
He said the SSM data revealed over 9.49 million businesses were registered in Peninsular Malaysia whereas in contrast, Sabah lacked official records under the same framework due to the absence of a mandatory registration requirement with SSM.
SSM aligning Sabah’s registration framework will improve access to federal grants and financing, enhanced business credibility and documentation, legal identity and name protection, and eligibility for procurement and tenders, Tan stressed.
“This is not about compromising Sabah’s autonomy, it’s about achieving equal opportunity,” he said.
“Sabahans are resourceful and resilient, but many businesses remain ‘invisible’ in the national
ecosystem. That must change,” he added.
Tan said Sapa proposes a dual-registration model, where SMEs comply with local regulations while also being supported to register with SSM.
This transition could be made accessible through mobile registration units, digital onboarding platforms and waiver of registration fees, he said.
“We must move past jurisdictional silos and prioritise empowerment. Bridging this administrative gap is crucial to uplifting Sabah’s SMEs,” he added.
