09/10/2025

BIZ & FINANCE THURSDAY | OCT 9, 2025

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Samenta calls for pro-SME budget, no new taxes

BUDGET 2026 WISH LIST

KUALA LUMPUR: Digital banks are urging the government to prioritise the distribution of targeted subsidies and cash aid in Budget 2026 through digital banking platforms, highlighting their potential to deliver a more equitable and efficient system. The first operational digital bank – GX Bank Bhd – said digital banks are also seen as crucial partners in national development, enhancing the secure and efficient distribution of government aid to ensure subsidies reach Malaysians directly and effectively in managing cost-of-living pressures. “In this regard, a single, unified digital platform should be established to manage all national subsidies and cash assistance programmes,” GXBank told Bernama in a written response. At present, the government’s aid initiatives such as targeted subsidies and cash handouts, are channelled through various platforms, including e-wallet and MyKad. Malaysia’s Islamic digital bank KAF Digital Bank Bhd CEO Rafiza Ghazali has called for stronger collaboration between digital banks, the government and industry players, emphasising that digital banks should not work in isolation and that stronger KUALA LUMPUR: The Sarawak Dayak Oil Palm Planters Association (Doppa) is calling for a groundbreaking initiative that integrates carbon trading to provide a stable income for rural communities in Sarawak. Its president Dr Napolean R Ningkos said that with approximately 1.7 million ha of Native Customary Rights (NCR) land featuring significant forest cover, there is strong potential PETALING JAYA: The Small and Medium Enterprises Association of Malaysia (Samenta) has urged the government to make Budget 2026 a truly pro-SME and pro-growth budget, focused on easing financial pressures, improving access to credit, and supporting intra-Asean trade; while avoiding new taxes that could slow recovery. National president Datuk William Ng said the recently released Samenta SME Outlook Survey shows that while 65% of SMEs believe the economy is on the right track, many are still struggling with tight liquidity and rising costs. “Seven in 10 SMEs have less than six months of cash reserves. As such, this is not the time for new taxes or additional compliance burdens,” he emphasised. He said Budget 2026 should focus on cash flow relief and competitiveness, rather than new revenue measures. “Any form of new or expanded tax would further erode the resilience of our SMEs. Instead, the government should expand access to affordable financing. We urge the government to

o SME group urges relief, wider credit access and Asean trade boost – warns new levies could hurt recovery increase the capacity and coverage of the credit guarantee schemes so that more SMEs can obtain financing without heavy collateral requirements,” Ng said. Despite being the closest neighbour, he noted that intra-Asean trade remains around 21%. “The recent tariff challenges and

PETALING JAYA: Senheng New Retail Bhd, a consumer electrical and electronics retailer, has called for the government to accelerate green technology adoption with Malaysians prioritising affordable and green living solutions. Executive chairman and managing director Lim Kim Heng ( pix ) said the overwhelming demand for government rebates on energy efficient appliances proves the public is eager to make these purchases. “We hope to see more rebate funds, as well as personal income tax relief for solar adoption. These incentives will help ease the financial burden on families and stimulate the retail sector, while increasing technology penetration and greener practices,” he added. With proven solutions such as affordable solar packages, energy efficient appliances, and reliable after sales service, he said, the company is well-placed to support the government to meet this growing rakyat demand through targeted incentives. He also pointed out that despite steady economic growth, consumers remain cautious with spending while businesses also navigate rising operational costs. “The retail sector must transition from traditional methods to a tech driven model that prioritises efficiency and service. To address this, targeted support national environmental goals but also ensure that smallholders receive a sustainable income without resorting to expanding oil palm cultivation,“ he said in a statement to Bernama. DOPPA also emphasised the need for a more effective replanting incentive scheme in Sarawak, highlighting that less than 1% of the 48,000 independent smallholders in supply chain disruptions have highlighted the urgency to near shore production and strengthen regional supply chain. We call on the government to provide tax incentives for expenses related to developing intra-Asean markets and supply chains. This will encourage SMEs to invest in regional partnerships, joint ventures, and export networks within Asean,” he added. He opined that this is even more crucial given the intention to move from ‘Made in Malaysia’ to ‘Made by Malaysia.’ “Assistance must move beyond traditional support for local manufacturing to enabling innovation, intellectual property development, and globalisation of Malaysian brands,” he noted. Samenta’s key recommendations

for Budget 2026 include no new or expanded taxes that increase compliance or cost burdens on SMEs; expansion of credit guarantee schemes and introduction of revenue-based or unsecured lending to widen access to financing; support for small-scale automation and digitalisation through co-funding, training, and advisory programmes; and tax incentives for ESG adoption such as deductions or preferential loan rates for SMEs meeting sustainability milestones. Samenta also recommended recognition of intra-Asean market development expenses as deductible costs to encourage regional expansion and supply chain participation; and regional balancing, ensuring SMEs in the East Coast, Sabah, and Sarawak receive

equal access to infrastructure, financing, and training. As the first budget under the 13th Malaysian Plan, Ng said, Budget 2026 must help SMEs move from survival to competitiveness, and from being suppliers to becoming innovators and regional players. “We don’t need more one-off grants; we need an ecosystem that rewards innovation, digitalisation, and regional integration. SMEs are Malaysia’s backbone. A supportive, inclusive, and regionally focused Budget 2026 will not only sustain us but also drive Malaysia’s long-term competitiveness across Asean,” he added. Ng assured that Samenta is ready to work with the government to translate Budget 2026 policies into real impact on the ground.

Senheng pushes for faster green tech adoption in Budget wishlist

Digital banks eye bigger role in subsidy, cash aid distribution

partnerships will be essential moving forward. Ryt Bank, a next-generation artificial intelligence (AI)-powered digital bank, believes a single distribution platform via a digital bank, which is enabled by electronic know-your-customer processes, would be able to reduce fiscal leakages, thus ensuring fairer distribution of aid and promoting greater financial inclusion. The bank also hopes that Budget 2026 will introduce tiered subsidies for entrepreneurs to acquire digital devices, linked to digital bank onboarding and digital platform adoption. “Subsidies could increase with milestones such as signing up with a digital bank, registering on e-commerce platforms like Shopee and achieving sales targets – all aimed at accelerating digital adoption and financial inclusion among small businesses,” said Ryt Bank. GXBank has also called for a government-backed guarantee scheme for micro loans to enable financial institutions to unlock critical capital for micro, small and medium enterprises.

tax incentives that encourage retailers to invest in AI and technology, alongside employee training. This will enable businesses to better meet consumer demands, pass on savings to consumers, and provide better services,” remarked Lim. For many businesses, he said a slowdown in consumer purchasing and fierce e commerce competition

cautious with spending while businesses also navigate rising operational costs and this creates hesitancy that prevents consumers from making purchases and hampers local businesses. To address these challenges, he said the retail sector must transition from traditional methods to a tech driven model that prioritise efficiency and service. “AI and machine learning are essential tools for achieving this, enabling businesses to become more efficient, pass on savings

creates immense pressure and digital transformation is essential for survival. “We value stronger collaboration opportunities with government of our New Retail Model to the wider retail community. This public p r i v a t e partnership will accelerate nationwide digital adoption and help ensure no business is left behind,” said Lim when outlining the Budget 2026 wishlist. Despite steady economic growth, he emphasised that many consumers remain agencies to extend the pioneering technology insights

to customers, and provide better services,”said Lim, adding that Senheng, as a leader in AI adoption within the consumer electronics retail industry, has seen firsthand how these investments can lead to operational excellence and better consumer experiences. “We urge for targeted tax incentives to encourage retailers to invest in technology and employee training. This will enable businesses to better meet consumer demands,” he said, adding that the government’s focus on digital transformation is highly important.

It said such a scheme could create a powerful multiplier effect on national growth while providing a safer alternative to unlicensed money lenders. Doppa advocates carbon trading for sustainable income in rural communities

for these areas to make a substantial contribution to environmental conservation and community welfare. “In alignment with the national No Deforestation, No Peat, No Exploitation policy, Doppa also urges the government to implement a mechanism that compensates landowners for preserving their forested NCR lands. “This initiative would not only

Sarawak have succeeded in their application to participate in the scheme. The association attributes this to the cumbersome bureaucratic processes, particularly the verification of land applications by the Department of Land and Survey, Sarawak, which often requires an extended time period to complete all necessary checks.

He explained that the current scheme demands land title or status verification, thus delaying the approval process. The association also proposed that the government introduce a grant of RM9,000 per ha as an incentive for smallholders who have completed their replanting, as this initiative could significantly alleviate development costs for independent smallholders.