Latest news with #SmallandMediumEnterprisesAssociation
The Star
a day ago
- Business
- The Star
E-invoicing and LPG usage reprieves averted a possible micro-business crisis, says group
PETALING JAYA: Exempting businesses with annual sales below RM500,000 will spare small traders, hawkers and family-run shops from compliance burdens, says the Small and Medium Enterprises Association (Samenta). Its president Datuk William Ng said such burdens could force these businesses to either shut down or operate informally. ALSO READ: Govt to review e-Invoicing to avoid burdening small firms, says PM 'We have provided input on both issues, and we are grateful that the government has shown genuine care and support for our most vulnerable enterprises,' he said in a statement on Friday (June 6). 'Similarly, the postponement of e-invoicing requirements for businesses earning below RM5mil to Jan 1 next year gives small and medium enterprises (SME) the breathing space they need to prepare, upskill and adapt. 'This flexibility is what SMEs need to survive and thrive in a changing economic landscape,' he added. ALSO READ: E-invoicing put on hold if sales below RM500k On Thursday (June 5), the Inland Revenue Board (LHDN) announced that the implementation phase of e-invoicing for taxpayers with annual income or sales exceeding RM1mil but not exceeding RM5mil has been postponed to Jan 1,. LHDN also announced that taxpayers with an annual income or sales below RM500,000 are exempted from the e-Invoice system. The implementation phase for taxpayers with annual income or sales up to RM1mil has also been postponed to July 1 next year. ALSO READ: Small-scale food traders exempt from LPG enforcement until October Ng said these exemptions are not only timely but reflect an understanding of the real challenges faced by small businesses on the ground. On the waiving of enforcement action against the use of subsidised liquefied petroleum gas (LPG) by small food operators, Ng said it would go a long way towards safeguarding the daily livelihoods of thousands of families and small traders. 'It may be a small administrative change, but it carries significant implications for business continuity and the cost of living. ALSO READ: Focus on subsidised LPG smuggling, large-scale abuse not petty traders, hawkers, says Dr Wee 'The government's proactive stance has averted what could have become a national micro-business crisis, and for that, we are sincerely thankful,' he added. On Thursday, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said food traders will not be subjected to any enforcement action over the use of subsidised gas until October, nor will they require a permit for using more than 42kg of gas at a time. The Control of Supplies (Amendment) Regulations 2021, which came into force on Oct 15, 2021, limit the use of subsidised LPG to a maximum of 42kg at any one time for commercial purposes. Those exceeding this limit must obtain a Scheduled Controlled Goods Permit and only use non-subsidised LPG.
The Sun
08-05-2025
- Business
- The Sun
Malaysian SMEs very concerned about fallout from US tariffs: Samenta
KUALA LUMPUR: Malaysian small and medium enterprises are 'very concerned' about the potential fallout from US tariffs, with exporters already seeing orders delayed and joint ventures suspended, while non-exporters fear a surge of dumped goods from China that could disrupt the domestic market. Small and Medium Enterprises Association (Samenta) chairman of international trade Eugene Tan said domestic SMEs that directly export to America are already experiencing disruptions in trade flows and cost pressures. 'The situation is a significant concern for those directly exporting to the US. The tariff represents a direct cost. 'Importers bear the cost, but many American buyers push exporters here to reduce prices to offset the tariff impact. Ultimately, the burden falls back on us,' he said during a panel discussion at the 'Beyond the Headlines on US Tariffs: What's Next for Malaysian Businesses and the Global Economy?' forum hosted by Hong Leong Bank Bhd today. Tan stated that the primary concern for SMEs not directly exporting to the US is the broader economic outlook. He emphasised the risk of a potential slowdown, exacerbated by an influx of dumped goods from China flooding the Malaysian market. 'Local SMEs are significantly smaller in scale compared to Chinese competitors. If China begins flooding the market with dumped goods and services, we won't be able to compete.' Tan said domestic SMEs are looking at whether Malaysia has regulations in place to protect local businesses from the impact of the dumping. 'Is there some kind of regulation to protect the local industry, like the services and retail sectors, which are already feeling the brunt of this kind of goods (and services) dumping?' Tan confirmed that a slowdown is already being felt, which signals declining trade activity among SMES. 'There has been an immediate reduction in volumes. We are witnessing orders being put on hold, collaborations suspended indefinitely, and joint ventures delayed. Orders have slowed down across the board. Essentially, all the expected challenges are unfolding right now,' he said. The government recently announced Skim Jaminan Pembiayaan Perniagaan for the manufacturing sector, but Tan said there was no mention of similar support for the services sector. 'One of the biggest concerns among Samenta members is, 'What about us?' Many of them provide services, and the Americans are also cutting back on those. How can we navigate these challenging times if support is only extended to manufacturers and not the services sector?' he said. Hong Leong Bank group managing director and CEO Kevin Lam said that while the new global trade order presents challenges, it also unveils opportunities for businesses prepared to embrace change and reposition themselves. He noted that the initial uncertainty following the 'new trade world order' that began on April 2 was followed by the dynamism and adaptability of Malaysian entrepreneurs in seeking new avenues and innovative solutions. 'During such challenges, decisive leadership and strategic foresight become indispensable for fostering resilience and entrepreneurial responses to potentially significant shifts in the global environment. 'Our collective responsibility is to proactively equip SMEs with the knowledge, resources, and support necessary to navigate these complexities,' he said.
New Straits Times
08-05-2025
- Business
- New Straits Times
Asean Summit: SME group backs PM's WFH call to ease congestion
KUALA LUMPUR: The Small and Medium Enterprises Association (Samenta) supports Prime Minister Datuk Seri Anwar Ibrahim's call for companies in affected areas to consider allowing employees to work from home in light of the expected congestion during the two-day Asean Summit. Its president Datuk William Ng welcomed the suggestion as it would help alleviate traffic and crowding near the event venues. "This will reduce the expected congestion at and around the meeting venue," he told the New Straits Times. However, Ng said such work-from-home (WFH) arrangements should be implemented voluntarily and tailored to each company's operational needs. While exact figures on potential participation remain unclear, Ng said that the service, technology and administrative sectors are best suited for flexible work arrangements during this period. Government spokesman Datuk Fahmi Fadzil yesterday said the prime minister had advised companies with offices in areas affected by the upcoming Asean Summit to allow their staff to WFH during the two-day event. The Public Service Department (PSD) has also issued a circular allowing civil servants facing traffic congestion during the summit to apply for WFH. Fahmi said schools along major routes to be used by VIPs attending the summit would be allowed to conduct online classes.
The Sun
08-05-2025
- Business
- The Sun
Malaysian exporters brace for blow as US tariff looms
PETALING JAYA: Malaysian exporters are bracing for a 24% tariff on goods bound for the United States, set to start by July. Industry groups warned that the impact would be punishing, especially for SMEs. They are urging the government to move beyond quick fixes and focus on long-term structural reforms to strengthen the country's export resilience. Small and Medium Enterprises Association president Datuk William Ng cautioned that the impending tariff could have far-reaching implications for SMEs operating in high-volume, low-margin sectors. He said businesses in industries such as furniture, rubber gloves, and electrical and electronics are especially vulnerable to the impact. 'Malaysia is among the top 10 furniture exporters to the United States, with nearly RM6 billion worth of exports last year. 'A 24% cost hike to US buyers could render Malaysian-made furniture significantly less competitive, forcing many SMEs to either absorb the cost or risk losing market share.' However, the Investment, Trade and Industry Ministry remains optimistic, particularly regarding Malaysia's standing in the rubber glove industry. Its minister Datuk Seri Tengku Zafrul Abdul Aziz, in a briefing on its Q1 performance on Tuesday, said Malaysia is poised to expand its dominance in this sector. 'We hold around 47% of the US rubber glove market and, based on industry feedback, that figure is expected to rise to 55%.' In contrast, Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai pointed to data from an April survey that paints a worrying picture. According to the findings, 24.1% of companies expected their export volumes to shrink between 10% and 30% while 27.8% foresaw a drop exceeding 30%. On the profitability front, 40.7% anticipated margin erosion of more than 30%. 'The figures reflect the potential severity of revenue loss if the 24% tariff comes into force. 'Such declines would not only disrupt business cash flow but also jeopardise the financial viability of exporters already grappling with rising operational costs and competitive price pressures.' Ng said the ripple effects go beyond exports and businesses are already bracing for knock-on consequences, such as production slowdowns, reduced shifts, fewer overtime hours and scaled-back hiring. 'It is not just exports at stake; it is the multiplier effect. 'Fewer orders mean less work for logistics firms, weaker demand from local suppliers and shrinking income for employees. 'We must resist the urge to treat foreign labour as a quick fix in the face of international trade headwinds.' Both business captains stressed the need for strategic transformation to future-proof the industry. Soh called for a nationwide push towards automation, digitalisation and workforce upskilling. 'To support this shift, we urge the government to enhance incentives for automation, particularly for SMEs, through targeted grants and access to Industry 4.0 solutions. 'Upskilling programmes must also be ramped up to equip local talent for a more sophisticated manufacturing landscape.' Ng echoed this sentiment, underscoring the importance of developing local talent and embracing productivity gains. 'For SMEs, the solution is not hiring cheaper labour; it is becoming more productive, more efficient and offering greater value.'
