PETALING JAYA: Assistance for small business owners must reach those who need it without being held back by excessive bureaucracy and complicated application processes, business groups say, as they welcome the announcements and grants.
Yayasan Nishana chairman Nivas Ragavan said the RM200mil allocation is a meaningful initiative, particularly for those operating at the grassroots level of the economy.
“Home-based mothers, hawkers and night market vendors from the B40 segment often operate with very limited capital and face immediate challenges such as purchasing equipment, upgrading their business operations, improving marketability, adopting digital payment systems and expanding their customer base.
“For these MSMEs, even a relatively small amount of financial assistance boost can make a significant difference because it can directly improve their ability to generate revenue for their businesses.
“For example, a hawker may be able to upgrade essential equipment, while a home-based entrepreneur may be able to improve production capacity or invest in better packaging and marketing.
“However, the ultimate success of the programme will depend on how simple and accessible the application is, alongside its transparency.
“The assistance must reach genuine micro-business operators quickly and should not be burdened by excessive bureaucracy and red tape processes,” he said while adding that the additional RM1bil in micro financing is significant for business.
On the rise of the exemption threshold to RM3mil in annual sales, it was something the industry had previously engaged the government to address, said Nivas.
“Many smaller businesses operate with limited manpower and do not have dedicated finance or IT departments.
“For them, implementing e-invoicing involves more than simply issuing an electronic invoice, as costs may be associated with the systems.”
SME Association national president Dr Chin Chee Seong said the RM200mil grant can help SMEs upgrade equipment, improve stalls, adopt simple digital tools and boost productivity.
He cautioned against complicated documentation that discourages micro‑entrepreneurs, stressing the grant should improve businesses rather than serve as one‑off aid.
He also noted the additional RM1bil represents a 20% increase, important for viable businesses lacking collateral or strong financial records.
“The financing should reach micro‑businesses with reasonable rates, simple procedures, practical requirements and faster approvals,” he said.
Dr Chin also supported the higher e‑invoicing threshold, pointing out that turnover should not be confused with profitability.
“A company with RM2mil-RM3mil sales may still operate on thin margins after salaries, rent, utilities and other costs,” he said.
Small and Medium Enterprises Association of Malaysia national president Datuk William Ng said the Geran Sejahtera Madani, while aimed at small traders, will benefit the wider SME ecosystem.
“Hawkers, night market vendors and home businesses are frontline buyers for SME wholesalers, food manufacturers and packaging distributors.
“Direct cash relief at the grassroots level sustains trade volume and supports cash flow across supply chains.”
On the e‑invoicing threshold, Ng said this will benefit up to 80,000 SMEs in this band.
Malaysian Federation of Hawkers and Petty Traders Association president Datuk Seri Rosli Sulaiman said the RM200mil grant and RM6bil in micro‑business loan allocations must be given to all races who can benefit.
“SMEs are struggling financially, prices have gone up, the cost of living has risen and consumers’ purchasing power has weakened,” he said.
Rosli stressed that the grants would only be effective if the application process is simplified. He noted the grants could help entrepreneurs run trial rounds for their businesses, and urged the government to engage with associations for a clearer picture of ground realities.
On the e‑invoicing exemption limit being raised to RM3mil, he said this would ease the burden on small business owners and home‑based operators.
In a separate statement, the Inland Revenue Board (LHDN) said the announcement will benefit more than 1.1 million businesses that qualify for the exemption.
This Madani government initiative reflects the government’s concern for easing the compliance burden and costs borne by MSMEs, while allowing businesses to continue focusing on sustaining and expanding their operations, it said.
