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KUALA LUMPUR: Malaysia's finance ministry announced several new measures on Monday (Apr 20) to support micro-, small- and medium-sized enterprises (MSMEs) impacted by the global energy crisis.
The measures include an allocation of RM5 billion (US$1.27 billion) to provide financial coverage of up to 80 per cent and a guarantee period of up to 10 years for affected businesses, the ministry said in a statement.
Prime Minister Anwar Ibrahim said that the improved scheme is up from 70 per cent financial coverage and a guarantee period of seven years currently, news outlet The Star reported.
Anwar said that the RM5 billion guarantee facility would operate under Syarikat Jaminan Pembiayaan Perniagaan (SJPP), a wholly-owned entity of the finance ministry that administers and manages government guarantee schemes.
The facility will support affected sectors including construction, agriculture and agri-food, logistics, transportation and tourism, reported news agency Bernama.
“In the face of intensifying global pressures, the Madani government is acting swiftly, guided by direct feedback from industry players, to ensure that every measure reaches those who need it most," Anwar said in a statement on Monday.
Meanwhile, the transition period for implementing e-invoicing will be extended until Dec 31, 2027 for businesses with annual sales between RM1 million and RM5 billion, the finance ministry statement said.
Introduced as a digital platform to streamline invoicing and improve tax compliance, e-invoicing requires businesses to generate and submit invoices electronically, improving reporting and tax collection efficiency while reducing leakage.
The federal government would also consider interim import duty and sales tax exemptions until Dec 31 this year on reimported Malaysian goods that are unable to complete the export process due to disruptions caused by the conflict, it added.
Anwar also said that the government will continue to monitor the situation and assess the need to facilitate tax treatment for businesses affected by the conflict.
“The government will continue to strengthen collaboration with financial institutions, industry players and entrepreneurs to ensure that the measures implemented help sustain business operations and protect jobs," Anwar said.
“This is not a temporary situation; we must be prepared for gradual and prolonged changes.”
The move is part of ongoing efforts by the government since the start of the Middle East conflict, now in its eighth week, after the United States and Israel launched attacks on Iran.
On Monday, Anwar engaged Chinese and Indian business communities, which follows his engagements with Bumiputera - an official term for Malays and indigenous ethnic communities - MSMEs last week, local news outlet Malay Mail reported.
