Samenta urges PM Anwar to address SME challenges in Budget 2025

KUCHING (Oct 14): The Small and Medium Enterprises Association of Malaysia (Samenta) has appealed to Prime Minister Datuk Seri Anwar Ibrahim to address challenges faced by the small and medium enterprises (SMEs) in Budget 2025.

Its president Datuk William Ng said that in their various surveys and engagements with SMEs since early this year, most SMEs continued to face margin compression and were being displaced by a combination of digital disruption, labour shortages and increasing compliance costs despite the strong economic headlines.

“We are concerned that the government may be lulled into believing that our SMEs are doing well because of the strong economic rebound, moderation of inflation and strengthening of the ringgit.

“Contrary to that belief, many SMEs are badly impacted by the additional cost of doing business and are mulling steep increases in selling prices,” he said in a statement today.

Ng pointed out that the margin compression challenge was further exacerbated by increased compliance costs posed by the upcoming e-invoicing mandate and adherence to environmental, social and governance (ESG) standards.

Moreover, he said various government agencies and local authorities were increasing their fees to SMEs by between 15 and 250 per cent.

As a result, he said many SMEs were desperate for help but had no idea where or how to find it.

“We are hopeful that Prime Minister Datuk Seri Anwar Ibrahim is aware of these issues and will refrain from introducing any new and incremental taxes that may further diminish the competitiveness of our SMEs.

“Instead, the focus should be on helping our SMEs scale, manage their costs and tap into the various opportunities presented by the energy transition, climate change, aging population, artificial intelligence and the shifting global economic order,” he added.

Ng said Samenta remains committed to supporting Ekonomi Madani and the prime minister, hoping that the concerns of SMEs in the country could be addressed.