In exactly two weeks, the Pakatan Harapan government will unveil Budget 2020, against a grim backdrop of a weakening external environment.
With no resolution in sight to the ongoing global trade tensions, and the possibility of a global economic recession in the near future - the government has its work cut out for it. Economists and analysts have all been weighing in with their opinions about what needs to be incorporated in the upcoming budget announcement, in order to shield and strengthen the local economy.
The weakening global economy and decline in exports signifies tough times for any business that is involved in international trade. In Malaysia, it is estimated that about 98.5% of the country’s business fall under the SME category.
This, KPMG Malaysia Head of Tax, Tai Lai Kok says, means it is vital that the government puts in place strategic measures to help the group.
“In view of the ongoing challenges, SMEs will need more assistance than in previous years,” he says in an interview. Tai also notes that, given the weaker ringgit at the moment, SMEs could be provided with assistance to boost exports. “We must intensify efforts to provide funding support for SMEs, perhaps even providing micro-financing – we must do all we can to make it easier for them to compete in a tough market,” he says.
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