Driving SME Empowerment in Budget 2026
The SME Association of Malaysia (SME Malaysia), led by National President Dr. Chin Chee Seong, met with Minister of Finance II, YB Datuk Seri Amir Hamzah Azizan, to present its proposals for Budget 2026.
The engagement focused on strengthening Malaysia’s SME ecosystem through targeted fiscal support, digitalisation initiatives, and sustainable growth strategies. Senior officials from the Ministry of Finance (MOF), including YBrs. Tuan John Patrick Antonysamy, Under-Secretary of the Tax Division, attended the session.
Dr. Chin described the meeting as a productive exchange, reaffirming SME Malaysia’s commitment to collaborating with the government on inclusive and growth-oriented policies.
“SMEs form the backbone of Malaysia’s economy, contributing significantly to employment, innovation, and national growth,” he said. “Our engagement with the Ministry of Finance reflects our commitment to support the government in formulating policies that are responsive to the evolving needs of the SME community.”
Key Proposals for Budget 2026
SME Malaysia’s submission outlines eight core recommendations designed to boost productivity, strengthen resilience, and enhance business competitiveness. They include:
- SME Digital Adoption Matching Grant – to support e-invoicing, ERP/POS integration, and micro-enterprise digital training.
- Export Incentive Expansion – enabling local businesses to explore new global markets.
- Green Economy & ESG Financing – to promote sustainability practices.
- Targeted SME Tax Relief – to ease operational burdens.
- Wage & Hiring Incentives – to support job creation and talent retention.
- Affordable Financing Access – for small businesses and startups.
- Review of Extended SST on Rental & Leasing – ensuring fairer cost structures.
- SME-Friendly GST (4–6%) – proposed for better compliance and efficiency.
Championing Digital Transformation and Youth Talent
Among the standout initiatives is the Internship-Driven Digital Xpress Program (DXP), a collaborative effort between MOHE, HRDC, and SMEs. The programme aims to embed interns within SMEs to support digital transformation projects and promote hands-on skill development.
This effort not only accelerates digital adoption but also strengthens Malaysia’s internship and employment ecosystem, preparing youth for a tech-driven economy.
Government’s Commitment to Balanced Growth
Minister of Finance II, Datuk Seri Amir Hamzah Azizan, reiterated the government’s ongoing support for SMEs, noting that 2026 will be a pivotal year for Malaysia’s economic direction.
“Budget 2026 is about balancing,” he said. He highlighted that the government will continue empowering micro, small, and medium enterprises to become producers of Made-by-Malaysia products, nurture creativity, and drive value-based economic growth.”
He added that inter-ASEAN trade remains a government priority, supported by more streamlined payment systems across the region.
Collaborating for an Inclusive Future
The dialogue also discussed enhancing financing accessibility, expanding capacity-building programmes, and improving ease of doing business for SMEs.
Dr. Chin emphasised that SME Malaysia is ready to work closely with the Ministry of Finance to ensure that Budget 2026 empowers SMEs as a key pillar of Malaysia’s inclusive and sustainable economic growth.
