Budget 2025: ACCCIS highlights balanced approach for business, investment climate

KUCHING (Oct 6): The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) has identified several key fiscal stimulus that can be addressed in Budget 2025 in Dewan Rakyat this Oct 18.

Its president Kong Chiong Ung said among them was on e-invoicing matter where ACCCIS had proposed for the exemption threshold for small vendors to be increased from RM150,000 to RM500,000 in annual revenue.

“This recommendation takes into account the vast geography of Sarawak, where many areas experience poor internet connectivity.

“While larger enterprises have the resources to adapt to new regulations, small and medium enterprises (SMEs) may encounter significant challenges,” he said.

“Instead of seeking specific exemptions, we suggest that businesses with revenue exceeding RM500,000 begin implementing these measures, allowing for a review of any issues that arise during the rollout and enabling necessary improvements.”

On the minimum wage, ACCCIS proposed implementing a one-to-one subsidy programme to help businesses offset the additional costs from the wage increment.

This initiative will significantly ease the financial burden on small and medium-sized enterprises (SMEs), he said.

Adding on, Kong said it would be good for the government to lower the corporate tax rate in order to reduce operational costs for businesses, stimulate economic growth, and increase domestic direct investment (DDI).

“Moreover, a lower tax rate can attract substantial foreign direct investment (FDI), create more job opportunities for Malaysians, while at the same time, enhance global competitiveness and boost export trade.”

ACCCIS also hopes that the government will broaden the scope and criteria of green financing in support of the SMEs.

“Currently, many businesses struggle to secure necessary funding for transitioning to green energy technologies due to not meeting financing institutions’ criteria,” he pointed out.

Thus, he said more green investment incentives would help SMEs better navigate the challenges of green transformation and advance Malaysia’s goals toward a low-carbon economy and sustainable development.

While welcoming the federal government’s decision to double Sarawak’s special allocation from RM300 million to RM600 million for 2025, Kong however pointed out that this increase still falls short, considering Sarawak’s significant contribution to the national coffers through oil and gas revenues.

He added that while Sarawak is already making strides in areas like hydrogen production, carbon capture and storage, and digitalisation, adequate funding is crucial to address the development gap between Borneo and Peninsular Malaysia.

Sarawak, he said, is still in need of funds for infrastructure, including roads, bridges, communication networks, and utilities such as water and electricity.

“This support will not only foster growth but also ensure that Sarawak can continue to lead in these innovative fields,” Kong said.

Given the intensifying regional competition, especially from countries such as Indonesia, Vietnam, and Thailand, ACCCIS is calling on Putrajaya to implement attractive policies to attract foreign investment.

Kong said this can be achieved by strengthening collaboration between government and businesses, streamlining regulatory procedures, and expediting approval processes.

“Such measures will not only foster the growth of local industries but also improve their competitiveness on a global scale and by creating a more supportive ecosystem, we can ensure that our businesses thrive and contribute to a resilient economy,” he said.