SABAH United Chinese Chambers of Commerce (SUCCC) president Datuk Michael Lui has welcomed tax relief for small and medium-sized businesses and additional funding for the upkeep of Chinese primary schools under Budget 2027, describing them as encouraging first steps.
However, he said sustained private-sector growth in Sabah would depend on addressing operational challenges faced by local businesses.
Michael, who also heads the Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI), welcomed the increased national allocation of RM100 million for the maintenance and repair of Chinese primary schools, describing it as recognition of Malaysia’s multi-stream education system.
He noted that the allocation covered 1,304 Chinese primary schools nationwide, including 83 in Sabah, and urged the authorities to distribute grants based on building conditions, enrolment, infrastructure needs and regional maintenance costs to ensure smaller schools received adequate support for critical repairs.
Beyond the one-off allocation, he called for a consistent, long-term funding mechanism to support ongoing school maintenance.
Turning to business priorities, Michael welcomed lower income tax rates for eligible micro, small and medium enterprises (MSMEs), but stressed that tax relief alone would not be enough to unlock growth without improvements to the wider business environment.
He identified several key requirements, including easier access to financing, streamlined administrative processes, more reliable water and electricity supplies, and improved logistics infrastructure across Sabah.
“Tax cuts give businesses temporary breathing room; a stronger operating environment is what lets them expand sustainably,” he said.
Michael also called for stronger partnerships between Sabah’s educational institutions and local businesses to ensure technical and vocational education and training (TVET), skills development and artificial intelligence courses aligned with actual industry needs.
SUCCC and KKCCCI would continue monitoring the implementation of education grants and business-support policies, and assist eligible schools and companies in accessing available resources, he added.
