‘SME Budget’: Samenta hails RM57b financing boost, tax cuts and minimum wage relief

Samenta has welcomed Budget 2027 as an ‘SME Budget’, citing RM57 billion in financing and guarantees, a corporate tax reduction and minimum wage exemptions for qualifying businesses. — Picture by Yusof Isa

First Published: Saturday, 10 Oct 2026 5:55 PM MYT

KUALA LUMPUR, Oct 10 — The Small and Medium Enterprises Association of Malaysia (Samenta) has hailed Budget 2027 as an “SME Budget”, citing measures to ease cash flow pressures and lower operating costs for micro, small and medium enterprises (MSMEs).

Its national president Datuk William Ng also welcomed the declaration of 2027 as “Malaysia MSME Year” by Entrepreneur and Cooperatives Development Minister Steven Sim Chee Keong.

In a statement today, Ng said the budget’s focus on MSMEs was reflected in a RM57 billion financing and guarantee package, a one-percentage-point reduction in the corporate income tax rate for SMEs, and an exemption for SMEs from the revised RM2,000 minimum wage requirement.

“Samenta also strongly endorses Entrepreneur Development and Cooperatives Ministry’s (Kuskop) ABCD Framework. This framework offers a targeted roadmap to scale the ‘Missing Middle’, empowering domestic small businesses to modernise, integrate into high-value supply chains, and compete regionally,” he said.

Ng said Samenta, as Malaysia’s oldest and largest SME association, was committed to working closely with Sim and the Entrepreneur and Cooperatives Development Ministry (Kuskop) to ensure the effective implementation of the budget initiatives.

He said priority should be given to expediting the disbursement of financing facilities, providing assistance for digital automation and facilitating access to export markets, with minimal bureaucratic hurdles.

“This is to ensure the full benefits of this ‘SME Budget’ are felt across our business community,” he said.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027, yesterday announced that loan facilities and financing guarantees for MSMEs would be increased to RM57 billion in 2027 from RM50 billion, while their corporate income tax rates would be reduced by one percentage point.

He also announced that the minimum wage would be raised from RM1,700 to RM2,000 effective June 2027, with MSMEs recording annual sales below RM50 million exempted from implementing the revised rate to allow them time to adjust their business models. — Bernama