The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has commended the 2026 National Budget as a responsive, growth-focused, and fiscally responsible plan that supports households, businesses, and sustainable economic expansion.
The Chamber noted that the Budget aligns with the MADANI Economy framework and the Thirteenth Malaysia Plan (2026–2030), placing emphasis on inclusive growth, technological advancement, and resilience in an increasingly uncertain global environment.
No New Taxes and Strong Fiscal Discipline
ACCCIM welcomed the Government’s decision not to introduce new taxes, describing it as a timely and measured approach that helps reduce the burden on businesses and households. This decision comes at a time when many micro, small, and medium enterprises (MSMEs) are still recovering from the impact of rising costs and slower demand.
The Chamber also acknowledged the Government’s continued commitment to fiscal consolidation, with the budget deficit projected to narrow to 3.5% of GDP in 2026, down from 3.8% in 2025 and 6.4% in 2021. This, ACCCIM said, reflects strong fiscal discipline that helps reinforce investor confidence in Malaysia’s economic stability.
Enhanced Financing and Support for MSMEs
ACCCIM lauded the RM50 billion allocation for MSME financing and support, channelled through programmes such as soft loans, microfinancing schemes, and the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) guarantee facility — an increase from RM40 billion in the previous year.
The Chamber, however, urged the Government to ensure faster processing and approval of financing applications to make these funds more accessible to entrepreneurs and smaller firms.
It also proposed that the loan ceiling for stamp duty exemptions under microfinancing be raised from RM50,000 to between RM100,000 and RM200,000, in line with current business realities.
Improving Export Competitiveness
ACCCIM praised the increase in the Market Development Grant (MDG) allocation to RM60 million, noting its importance in helping Malaysian exporters expand their reach.
To further strengthen the export ecosystem, the Chamber recommended:
- Raising the MDG lifetime limit to RM500,000 per company;
- Increasing the claim ceiling to RM35,000 for international trade fairs and RM10,000 for local exhibitions; and
- Introducing special tax incentives for SMEs that achieve strong export growth.
These measures, ACCCIM said, would encourage more businesses to enter new markets and expand Malaysia’s global trade footprint.
Addressing SME Taxation and Incentives
While the Chamber welcomed the Budget’s overall pro-business direction, it expressed concern that the preferential 15% SME tax rate remains limited to the first RM150,000 of taxable income. ACCCIM recommended that the threshold be raised to provide SMEs with more financial flexibility to reinvest and expand operations.
The Chamber also supported the continued availability of Accelerated Capital Allowances (ACA) to encourage capital investment and technology adoption among SMEs.
Revitalising Tourism and Regional Development
ACCCIM welcomed the RM700 million allocation to revitalise the tourism industry in preparation for Visit Malaysia Year 2026, including tax exemptions for tourism operators, conference organisers, and venue upgrades.
The Chamber also expressed support for the development of Special Tourism Investment Zones (STIZ) in Johor, Melaka, Negeri Sembilan, and Sarawak, as well as the ongoing progress of the Johor–Singapore Special Economic Zone (JS-SEZ), which it views as a catalyst for cross-border investment and regional economic integration.
Strengthening the TVET Ecosystem
The Chamber noted the substantial RM7.9 billion allocation for Technical and Vocational Education and Training (TVET), describing it as a crucial step in addressing future labour market needs.
It called for improvements in curriculum relevance, teaching quality, and facilities, ensuring that TVET graduates are equipped with both technical expertise and soft skills that match industry expectations.
Building Confidence Through Consistent Policy
ACCCIM concluded that Budget 2026 provides a balanced mix of short-term support and long-term growth measures, reflecting the Government’s effort to maintain stability while driving transformation.
The Chamber emphasised that effective implementation, transparent governance, and industry collaboration will be key to ensuring that Budget 2026 delivers real, sustainable impact for businesses and communities nationwide.
