Highlights Of Budget 2023

With the recent highlights of Malaysia’s Budget 2023 on Grants & Incentives for Digitalisation & Automation.

There are 12 main efforts based on three determinations — inclusive and sustainable economic drive, institutional and governance reforms to restore confidence, and social justice to moderate disparities. Let’s look at some significant government initiatives to assist SMEs grow through Digitalisation & Automation.

Digitalisation & Automation

  • RM1 billion in funds under Bank Negara Malaysia (BNM) to help micro, small and medium enterprises (SMEs) automate their processes to digitalise their businesses.
  • RM100 million under the SME digitalisation scheme will be used to fund matching grants of up to RM5,000 to SMEs subscribing to apps to digitalise their businesses, such as point-of-sales systems, accounts or inventory management.
  • Govt to provide RM50 million in matching grants to encourage automation of plantation sector through use of robotics and artificial intelligence.
  • Govt to accelerate implementation of Jendela project as a national effort to provide internet network facilities.

RM725 million to implement digital connectivity in 47 industrial areas and nearly 3,700 schools.

Grants & Incentives to spur SME growth, Drive domestic investments

  • Syarikat Jaminan Pembiayaan Perniagaan to guarantee up to RM20 billion in loans from SMEs, with a government guarantee of up for 90% for companies in frontier tech, agriculture and manufacturing.
  • Investment incentives will be restructured towards tiered taxes based on outcomes, such as creating high-value jobs, including local firms in the supply chain and creating new industry clusters.
  • Khazanah Nasional and EPF to invest in innovative and high-growth local start-up companies with an investment value of RM1.5 billion.
  • Tax deduction of up to RM1.5 million for firms that list on Bursa Malaysia’s ACE and LEAP Markets until assessment year 2025; tax rebate also extended to tech companies that list on the Main Market.
  • RM100 million under Digitisation Grant Scheme for SMEs and small vendors to support business automation and digitisation; separately, there is a RM1 billion facility under BNM aimed at incentivising SMEs to automate processes and digitalise operations.
  • For Malaysia’s electrical & electronics (E&E) and aerospace sectors, govt plans to:
    > Extend tax incentives to manufacturing companies that transfer their operations to Malaysia, as well as a 15% tax rate for C-suite executives until  2024 to attract investment from companies affected by Covid-19;
    > Extend income tax incentives, as well as investment tax allowances to the aerospace sector until Dec 31, 2025 to encourage capacity expansion of existing companies and attract investment from new companies;
    > Strengthen development of Iskandar Malaysia in Johor via creation of a special financial zone and competitive remuneration package to attract international investors and skilled workers to settle in Malaysia;
    > RM6 billion strategic financing by Bank Pembangunan Malaysia to promote sustainable and automation agenda.
Budget 2023 News - Drive SMEs Growth

For more other initiatives announced by government that listed in budget 2023. Please check the links here > Source from TheEdgeMarkets.

In order to let all the businesses transition toward the next normal after the pandemic outbreak, government encourage more local businesses to move rapidly into the technology sphere. For the Start-up companies that doesn’t know where to begin the digital transformation, you can find out more programmes that organized by Malaysia Digital Agency MDEC or SIDEC. There are many digital initiatives specifically designed for SMEs, Entrepreneurs & Corporations to strengthen the digital ecosystem in Malaysia.

For the growing business or the companies which aiming for the expansion with digitalisation, but lack of structured approach to Digital Transformation, Shortage of Digital Professionals to Support the journey, or even having budget constrain, you can always feel free to CONTACT US, We have been working hand in hand with many companies (SMEs and MNCs) from various industries to successfully completed their digital transformation journey.

You can also find out more about the SaaS solutions like DATANORY Ecosystem, the Web Based / Mobile APP / Cloud system to accelerate your business growth. It helps to speed up your Digital Transformation Journey with this most cost effective solutions, especially for industries like Manufacturing, Distribution, FMCG, F&B, Pharmaceutical & Retail Trading.

Stay tuned for more updates. 

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Updated_28 February 2023

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