Reduce business costs, industry group tells govt ahead of Budget 2023

KUALA LUMPUR – The Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) has urged the government to pay particular attention to tackling cost-related bottlenecks in the business regulatory environment in the budget tabled this Friday.

In a statement, ACCCIM said it is looking forward to a responsible and pro-business budget that reduces the cost of doing business especially for small and medium enterprises (SMEs).

“ACCCIM is hoping for lower income tax rate at 15% and higher preferential threshold (RM1 million) to help SMEs ease their cost of doing business in view that it would help SMEs to be more competitive and have leeway to reinvest from the tax savings,” it said.

ACCCIM also wishes for higher capital expenditure threshold to encourage automation in all economic sectors.

“Standardise and increase the qualifying expenditure for Accelerated Capital Allowance for both Category 1 (high labour intensive industries) and Category 2 industries to RM10 million from RM4 million and RM2 million respectively,” it said.

The association also would like the government to review the electricity surcharge of 20 sen/kWj for the period of January 1 to June 30, 2023 on medium voltage and high voltage users, which have impacted SMEs. – Bernama, February 21, 2023