Budget 2025 enhances opportunities for SMEs in Sarawak, Sabah

KUCHING (Oct 19): The Budget 2025 provides a significant boost to small and medium enterprises (SMEs) in Sarawak and Sabah, said SME Association of Sarawak president Jordan Ong.

According to him, the RM5.9 billion allocation for Sarawak and RM6.7 billion for Sabah are crucial for improving infrastructure, enhancing connectivity and creating opportunities for the SMEs, particularly in the rural areas.

“Improved infrastructure will not only boost connectivity and logistics, but also enable SMEs in rural areas to thrive and expand their businesses,” he said in a statement.

On the proposed rise in minimum wages, Ong called it ‘a positive step for workers’ welfare’, but he also acknowledged that SMEs might face challenges in absorbing increased labour costs, particularly in sectors with tight margins.

“While we support the move to uplift the workforce, we urge the government to consider additional support measures, such as wage subsidies or incentives, to help SMEs adjust to this increase without compromising their business operations,” he said.

Additionally, Ong praised the RM40 billion allocation for business financing, with RM3.2 billion specifically for micro-loans under Tekun Nasional and Bank Simpanan Nasional (BSN).

He believed that this would provide a much-needed boost to small traders and underrepresented groups, including individuals with specific needs (OKUs) as well as the Bumiputera and Chinese communities.

The RM3.8 billion allocation through Bank Negara Malaysia for supporting digitalisation and automation, particularly in the agrifood sector, should improve operational efficiency and sustainability, he added.

Ong also commended the RM50 million allocation in Digital Matching Grants through BSN, noting that this would accelerate the digital transformation of SMEs in Sarawak and enhance their competitiveness in the digital economy.

Furthermore, he welcomed the RM650 million allocation for women and youth entrepreneurs, which would promote inclusivity in the Malaysian economy.

“This initiative will encourage more women and young entrepreneurs in Sarawak to start or expand their businesses, contributing to a more dynamic and diverse business ecosystem,” he said.

Ong also praised the RM1 billion allocation for startups through the National Fund-of-Funds (NFOF), and the RM1 billion support for mid-tier companies entering export markets.

These measures, he said, would help Sarawakian SMEs and startups expand globally, boosting Malaysia’s competitiveness.

“Budget 2025 offers a strong package that directly addresses the needs of SMEs in Sarawak and across Malaysia, fostering a more favourable business environment and promoting innovation,” added Ong.