We know raising money for start-ups can be difficult. But here’s a joyous news for Malaysian entrepreneurs out there.
In 2015, the government launched SME Investment Partner under the 2015 Budget, with the theme “Accelerating Growth, Ensuring Fiscal Sustainability, and Prospering the Rakyat”, to assist Malaysian entrepreneurs.
The SME Investment Partner programme is especially dedicated for start-ups, business accelerator programmes, Small and Medium Size companies (SMEs) and entrepreneurship development. The 2015 Budget has been very supportive of SMEs, entrepreneurs and start-up companies with financial support and financing offers totalling RM11.4 billion allocated for SME development.
SMEs have contributed as much as 33% to Malaysia’s GDP and the aim is to increase this figure to 41% by 2020. Here are just a few of the reasons why SME Investment Partner is an attractive one to enthusiastic entrepreneurs:
Increased financing avenues
Image by Malaysian SME Loan
To help those who are struggling with their start-up capital, the Government introduces SME Investment Partner programme to provide financing during the start-up period in the form of loans and/or equity.
Tekun, the agency under the Ministry of Entrepreneurial and Cooperative Development to provide simple and quick financing facilities to Bumiputera businesses, has allocated up to RM350 million to Bumiputera entrepreneurs.
Indian entrepreneurs, young professional women and armed forces veteran entrepreneurs’ development programme will receive RM50 million each.
As to assist Chinese entrepreneurs, the government will provide soft loans totalling RM50 million and RM30 million.
Image by GST Customs
After the GST implementation, most businesses and companies are at lost with regards to how GST operates. To guide entrepreneurs with the new and big change, the government will provide incentives and assistance as follow:
First, RM100 million provided to businesses to send their employees for GST training courses.
Another RM150 million will also provided to SMEs to purchase of accounting software.
There will be also Accelerated Capital Allowance that helps businesses to purchase of ICT equipment and software.
And lastly, expenses incurred for training in accounting and ICT related to GST is subjected to tax deduction. With these options, it will make it easier for businesses to adapt.
Income tax benefits
With the rising cost to run a business, the government will reduce the corporate taxes by 1% to 24%. And as for SMEs, taxes will be reduced by the same percentage to 19%.
This step is meant to help entrepreneurs by taking the burden off from the increasing cost, and as well to prevent any increment in cost to be passed down to the consumers.
by Chris Tan
Image by Savemoney.my