DAP’s Bagan MP Lim Guan Eng calls for a moratorium on tax hikes alongside the government’s austerity measures, advocating for targeted subsidies for MSMEs to counter rising operational costs and potential market competition.
DAP’s Bagan Member of Parliament, Lim Guan Eng , has called upon the Malaysia n government to pair its austerity measures with a moratorium on any increases in taxes, regulatory charges, and compliance expenses. He emphasized the necessity of implementing targeted subsidies specifically for micro, small, and medium enterprises (MSMEs) currently grappling with escalating operational costs.
Lim's statement, released today, reflects concerns that the existing austerity package, which includes the Budi95 fuel subsidy, restrictions on overseas travel, and the cancellation of Hari Raya open houses, is inadequate to protect vulnerable segments of the population and key industries. He firmly believes that these measures must be complemented by additional support to alleviate the financial pressures faced by businesses. \Lim, who previously served as the Minister of Finance, highlighted that Malaysia requires a comprehensive reset of its regulatory and tax policies to assist MSMEs in overcoming significant challenges such as soaring costs and labor shortages. This includes the liberalization of foreign worker recruitment to address critical labor needs. He warned that local businesses are increasingly vulnerable to foreign competitors employing aggressive price-cutting strategies, known as “involution,” to gain market share and potentially drive local firms out of the market. Furthermore, Lim advocated for a policy similar to those implemented by Malaysia's ASEAN neighbors, mandating that both domestic and foreign investors source at least 50% of their products locally, provided these products are available. He stressed the importance of protecting the country’s 1.1 million MSMEs, which constitute over 96% of all businesses. The failure to offer this protection, he argued, would not only destabilize the economic landscape but also significantly erode political stability and diminish public support for the current government. \Specifically, Lim urged the immediate suspension of increases in the Sales and Service Tax (SST), the implementation of e-invoicing compliance requirements, and the 2% Employee Provident Fund (EPF) contributions for foreign workers, which were initiated towards the end of the previous year. He underscored that these measures, coupled with the rising operational costs, are putting an immense strain on MSMEs. The comprehensive approach Lim suggests aims to create a more resilient and supportive environment for local businesses, fostering their growth and preventing their displacement by international competition. His proposals are designed to offer immediate relief while simultaneously addressing the underlying structural issues impacting the sector's financial health. The core of his message is that, while fiscal prudence is crucial, it must be balanced with targeted interventions to safeguard the economic well-being of the nation's vast MSME sector and the stability of the economy as a whole
Lim Guan Eng Austerity Measures Tax Moratorium Msmes Subsidies Economy Malaysia
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pas Urges Authorities to Address Religious and Racial Tensions SwiftlyPas calls for immediate, transparent, and fair handling of religious and racial tensions, urging authorities to provide clear explanations, unbiased law enforcement, and effective crisis communication. The party stresses the importance of mature and responsible behavior from all parties, including leaders and media, in addressing sensitive issues, emphasizing the need for wisdom, calm, and sensitivity in handling matters related to religion and identity.
Read more »
Lim Guan Eng Questions Unjustified 502% Quit Rent Increase for Low-Cost Flats in PenangDAP advisor Lim Guan Eng criticizes a substantial increase in quit rent for low-cost flats in Penang, questioning the rationale behind the hike and its impact on residents. He refutes the Chief Minister's explanation and calls for a fairer system.
Read more »
YPNM urges traders to comply with festive price controlsKota Kinabalu: Yayasan Pengguna Negara Malaysia (YPNM) has commended the Domestic Trade and Cost of Living Ministry (KPDN) for implementing the Festive Sea
Read more »
Jelutong MP urges Penang CM to scrap Karpal Singh Drive reclamation after EIA failuresGEORGE TOWN, March 11 — Jelutong MP RSN Rayer has urged Penang Chief Minister Chow Kon Yeow to honour his promise to cancel the proposed Karpal Singh Drive coastal reclamation...
Read more »
Steven Sim Calls for Unity, Urges Harshest Action Against Racial ProvocationRising racial tensions in the community have been making headlines recently, prompting the Minister of Entrepreneur Development and Cooperatives (KUSKOP),
Read more »
K-drama actor Lim Ju-hwan spotted working at logistics companyMarch 11 (Reuters) - Oracle's stake in TikTok's U.S. business operations is worth around $2 billion, a filing showed on Wednesday, more than a month after its Chinese parent ByteDance finalized a deal to set up a majority-owned American joint venture to avoid a ban.
Read more »