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Industry association urges permanent LPG permit exemption for small businesses
Industry association urges permanent LPG permit exemption for small businesses

New Straits Times

time4 hours ago

  • Business
  • New Straits Times

Industry association urges permanent LPG permit exemption for small businesses

KUALA LUMPUR: The Small and Medium Enterprises Association Malaysia (Samenta) has urged the government to make permanent the exemption from the Scheduled Controlled Goods Permit (PBKB) for micro and small-scale food and retail businesses using subsidised liquefied petroleum gas (LPG). "We hope the amendments to the Control of Supplies Regulations 2021 will recognise the unique needs of micro and small enterprises and introduce a permanent exemption for those in essential sectors like food and retail. "At the very least, a simplified, tiered or digital-friendly permit process should be introduced," said its president Datuk William Ng today. Samenta welcomed the cabinet's move to exempt micro and small-scale businesses, describing it as a timely and much-needed relief for businesses grappling with rising operational costs and declining consumer spending. "Many of these businesses operate on thin margins, and the ability to continue accessing subsidised LPG without the added administrative burden of obtaining a PBKB helps ease pressure on both cost and compliance," Ng said. However, the group cautioned that reinstating the permit requirement in full could harm informal and micro businesses, which may struggle with the administrative process, including documentation and digital access. "It could also unintentionally drive some of them out of the formal supply chain or into non-compliance, creating enforcement challenges and disrupting livelihoods," he said. Ng also called on the government to strengthen engagement with industry bodies ahead of future policy changes. "We urge the government to ensure that future regulations consider the realities faced by smaller businesses, and to enhance consultation with industry groups like Samenta before implementation," he added. Earlier today, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the Cabinet had agreed that micro and small-scale food and retail businesses may continue using subsidised LPG cylinders without a PBKB until October. Armizan said that the exemption would remain in effect throughout the Ops Gasak enforcement period and until amendments to the Control of Supplies (Amendment) Regulations 2021 are finalised.

Data protection officer rule creates SME compliance woes
Data protection officer rule creates SME compliance woes

New Straits Times

time5 days ago

  • Business
  • New Straits Times

Data protection officer rule creates SME compliance woes

KUALA LUMPUR: An association representing more than 5,000 small- and medium-scale enterprises (SMEs) has voiced concerns about the lack of clarity on the government's requirement for certain businesses to employ data protection officers (DPOs). Last July, the Personal Data Protection Act (PDPA) was amended, requiring, among other things, the appointment of DPOs for companies processing more than 20,000 individual personal data entries and 10,000 sensitive personal data entries. The amended PDPA comes into effect today, but the Small and Medium Enterprises Association of Malaysia (Samenta) said many companies are in the dark over policy specifics. "Most SMEs are struggling to interpret what is expected of them, including the criteria for determining who qualifies as a DPO, the scope of responsibilities, and the consequences of non-compliance," Samenta president Datuk William Ng said. He said while SMEs understood the importance of data protection, there is a need to be realistic about the capacity of smaller companies to absorb additional costs linked to the rule. "Many SMEs subject to PDPA are using bare-bones templates for their policy statements. "The new rule requiring a data protection officer will raise costs and compliance requirements." He said the creation of such a role would set an SME back by RM45,000 to RM60,000 a year. Ng called on the government to extend the deadline for compliance. "We need the government to provide clearer, more detailed guidelines on the DPO role, including responsibilities, compliance expectations and enforcement mechanisms." The New Straits Times has reached out to the Digital Ministry for comment and clarification about the DPO role, enforcement plans and industry player concerns, but has not received a response. While the Personal Data Protection Commissioner's Office has released guidelines on the appointment of DPOs, employers say the guidelines lack clarity and specificity. According to the FAQ on the commission's website, no minimum requirements have been set for DPOs, although employers must ensure that appointed officers receive adequate training to perform their duties. It also states that DPOs must be knowledgeable about PDPA and have a sound understanding of data security. The FAQ said there is no directive on the duration of courses or training that DPOs must attend. "However, it is recommended that such courses or training be completed within a reasonable timeframe, and organisations should determine an appropriate duration based on the course content and their needs." Malaysian Employers Federation president Datuk Syed Hussain Syed Husman has called for the publication of detailed guidelines on the minimum qualifications required for DPOs. "The government should outline minimum competency standards to ensure consistency. "Without this standard, enforcement may be arbitrary, and employers acting in good faith may face penalties." "Without guidelines on credentials, employers face uncertainty when hiring and appointing DPOs." Syed Hussain said MSMEs, in particular, would struggle with role allocation, especially if the DPO role is part time or combined with other responsibilities. "For large employers, DPO responsibilities may be absorbed within the legal, compliance or IT departments. "But most SMEs will find it difficult to manage this as a separate requirement. "We need to be realistic in our execution and not rely on a textbook approach." He urged the government to consider extending the compliance deadline. "Additional time will allow employers to prepare and build the necessary infrastructure for sustained compliance and effective data protection governance." Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai said hiring a full-time DPO would significantly increase salary and benefit costs for companies. "Annual salaries for an in-house DPO range from RM40,000 to RM150,000, depending on the company's size, the size and complexity of the data handled, and the talent's experience." Soh said a short extension period should be given to companies struggling to comply with the regulation. He said the government should provide additional guidance and support, such as training programmes and clearer communication about the requirements. Jobstreet by SEEK estimates that 27,000 DPOs are needed to fulfil the government's requirements, its managing director Nicholas Lam said. "There is no public estimate for thenumber of practising DPOs in Malaysia. "However, industry feedback on our platform indicates that while organisations recognise the importance of data protection, many do not yet have a dedicated DPO role." Lam said DPO job listings have been relatively unchanged since 2021 despite the new requirements. UiTM Associate Professor of Cybersecurity and Information Safety Dr Muhamad Khairulnizam Zaini said university programmes at the bachelor's and master's levels and even certificates were sufficient to supply such talent. "The Human Resources Development Corporation's Data Privacy and Privacy by Design course is also applicable to develop the skills needed." Khairulnizam, however, said there would be a temporary shortage of DPOs as the June deadline looms. "We are on the right track. Preparedness is a challenge due to a lack of talent." He said that the government's mandate has aligned Malaysia more closely with international standards. He added that having qualified personnel will reduce data breaches and cybersecurity risks, and encourage companies to be more accountable in maintaining cyber hygiene.

NST Leader: Integration of Asean's MSMEs
NST Leader: Integration of Asean's MSMEs

New Straits Times

time24-05-2025

  • Business
  • New Straits Times

NST Leader: Integration of Asean's MSMEs

The 46th Asean Summit to be held in Kuala Lumpur tomorrow and on Tuesday can be a defining one for the Southeast Asian bloc's economy. But the 10 members must seize the moment to make that happen. Obviously, there are many intra-Asean issues that are vying for attention, one such being the bloc's goal to end the civil war in Myanmar. But one is very critical: integration of the bloc's micro, small and medium-sized enterprises (MSMEs). Besides, this is very much in line with Prime Minister Datuk Seri Anwar Ibrahim's vision of seeing a more robust economic integration of Asean. There is no denying that similar calls have been made before, the last being made by the Philippines at the 30th Asean Summit in Manila. The rationale for such calls is clear: MSMEs, numbering 71 million —with 65 million in Indonesia alone — make up 97 per cent of Asean's economy and provide 85 per cent of employment in the region. That is one power the bloc must bank on. But integration is happening in dribs and drabs. When the 10 leaders of the region meet in Kuala Lumpur, they must change this. Or at least agree to agree. To be sure, there are challenges. The 10 economies are different. Singapore, for example, is a developed nation, leaving behind the rest in the bloc by some enviable distance. Myanmar is perhaps the least developed in Asean, made worse by the military coup in February 2021. With civil war raging, and about 10,000 people killed up to last year and 3.5 million people internally displaced, there is little opportunity to move the economy forward. To the junta, bullets come before business. Asean has made great efforts to get the junta to end the bloodshed, but four years on, the military leaders refuse to budge. By all accounts, Myanmar's economy is nearing collapse. Some Western analysts are calling it a failed state. In 2021, Myanmar had 126,237 MSMEs, the smallest contributor to the 71 million in the bloc. It is hard to say how many are still operating. Thailand comes in second with 3.2 million MSMEs, and Malaysia is third with 1.1 million enterprises. The rest report numbers under a million, with Laos registering the lowest at 62,000. Given the differing treatment across the region about what MSMEs are, we may be comparing apples and oranges. Be that as it may, MSMEs power the bloc's economies. No question about their contribution to the gross domestic product, employment and social development. If integration is to work, a number of roadblocks must be removed. Most critical are structural barriers, to use the language of the Small and Medium Enterprises Association Malaysia (Samenta). It lists inconsistent product standards, fragmented licensing systems and slow, non-digitised Customs procedures among them. This divide requires serious attention. As Samenta told the Business Times on Friday, there cannot be economic integration in Asean without the inclusion of MSMEs.

Samenta: No real ASEAN integration without MSMEs
Samenta: No real ASEAN integration without MSMEs

Malaysian Reserve

time23-05-2025

  • Business
  • Malaysian Reserve

Samenta: No real ASEAN integration without MSMEs

by AZALEA AZUAR THE Small and Medium Enterprises Association Malaysia (Samenta) is urging ASEAN leaders to place micro, small and medium enterprises (MSMEs) at the forefront of discussions as Malaysia hosts the ASEAN Summit 2025. National president Datuk William Ng said the summit is expected to impact the region's support and scaling of its MSMEs. 'We call on ASEAN leaders to seize this moment: Reduce non-tariff barriers (NTB), leverage geopolitical shifts, invest in creative and digital sectors, and create a level playing field in trade and compliance. 'A resilient ASEAN must start from the ground up, with our small businesses at the core of our shared future,' he said in a statement. Ng stressed how MSMEs make up a majority (more than 97%) of all business in ASEAN and are responsible for 85% of employment in several member states. Despite their abundance, they only contribute 30% to 40% of the region's GDP and 22% of intra-regional trade due to structural barriers and limited scale, innovation and integration into regional value chains. Ng raised concerns regarding the low ASEAN trade levels as it represents a missed opportunity despite their proximity and cultural familiarity. ASEAN trade is important for MSMEs for internalisation but NTB such as inconsistent product labelling, cumbersome customs clearance and poorly coordinated regulations in the agrifood sector make it inefficient and costly. 'ASEAN must take bold steps to address these issues through enforceable agreements on NTB reduction, expanded mutual recognition arrangements (MRAs) and greater operationalisation of the ASEAN Single Window for MSMEs,' Ng said. Ng also advised ASEAN to present itself as a neutral and business-friendly bloc to absorb global investments and new manufacturing mandates as global supply chains are shifting and companies are diversifying away from single country dependencies. Therefore, he suggested enhancing the capacity of MSMEs to avoid entrenching economic dualism and widening inequality. 'ASEAN must also remain vigilant against rising protectionism in a fragmented world and ensure reciprocal market access is honoured. 'While large firms often have the resources to adapt or lobby, MSMEs are typically the first casualties of sudden tariffs, quota restrictions or import bans. 'ASEAN must be proactive in trade defence, making sure our MSMEs are not collateral damage in global economic disputes,' Ng said. ASEAN MSMEs face a middle-income trap due to low-value sectors, and for them to escape the trap, they need investment in innovation grants, regional research and development (R&D) centres, and cross-border talent and technology platforms. This is critical not only for income growth but also for building globally competitive MSMEs that can expand beyond their home markets. Moreover, the ASEAN Digital Economy Framework Agreement should promote inclusive platforms, cross-border e-commerce and data governance policies, while focusing on realistic environmental, social and governance (ESG) standards for smaller firms. Ng also acknowledged the high potential of the creative economy for MSMEs, noting that it is scalable, culturally rooted and has strong export prospects. 'ASEAN must include the creative economy in its regional economic integration strategy, with a focus on copyright and intellectual property (IP) protection for creators, market access and mobility for creative professionals and creative clusters and infrastructure, especially for youth and women-led enterprises,' he said.

No real Asean integration without MSME inclusion, says Samenta
No real Asean integration without MSME inclusion, says Samenta

New Straits Times

time23-05-2025

  • Business
  • New Straits Times

No real Asean integration without MSME inclusion, says Samenta

KUALA LUMPUR: There can be no real Asean integration without real micro, small and medium enterprises (MSMEs) inclusion, said the Small and Medium Enterprises Association Malaysia (Samenta). Its national president Datuk William Ng said Asean leaders must place MSMEs at the heart of the region's integration strategy to boost the group's otherwise low intra-regional trade. Policymakers, he added, must seize a "once-in-a-generation" opportunity to address structural barriers holding back MSMEs and to reposition them as key drivers of innovation and resilience in the region. "MSMEs make up over 97 per cent of all businesses and contribute to more than 85 per cent of employment in many Asean countries, yet their contribution to gross domestic product and intra-regional trade remains disproportionately low," Ng said in a statement. He cited various non-tariff barriers, from inconsistent product standards and fragmented licensing systems to slow, non-digitised customs procedures, as key impediments that make cross-border trade costly and inefficient for smaller firms. "These barriers are structural and long-standing. If we are serious about regional economic integration, we must adopt enforceable commitments to reduce them," Ng said, adding that mutual recognition arrangements and wider use of the Asean Single Window must be prioritised. Ng also warned that MSMEs risk being sidelined amid shifting global supply chains, such as the China Plus One strategy and continued geopolitical tensions. "This is an ideal moment for Asean to present itself as a neutral, business-friendly bloc. But that will only be credible if MSMEs are empowered to compete and contribute as equal partners in regional growth," he said. Samenta also urged the region to invest in dedicated innovation grants, establish regional centres for research and development, and support platforms for cross-border collaboration in talent and technology. It also called for more inclusive implementation of Asean's digital and environmental, social and governance agendas, and greater support for creative industries, particularly those led by youth and women, as a new growth frontier for MSMEs. "The Kuala Lumpur Asean Summit must be a turning point. A resilient Asean must begin from the ground up, with our small businesses at the core of our shared future," Ng said.

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