Lim Guan Eng moots tax moratorium, interest-free loans to help MSMEs in ‘crisis of survival’

 

Lim Guan Eng speaks at the 18th DAP National Congress at the Ideal Convention Centre (IDCC) in Shah Alam on March 16, 2025. — Picture by Firdaus Latif

KUALA LUMPUR, March 18 — DAP advisor Lim Guan Eng today pressed the government to implement urgent measures to help micro, small, and medium enterprises (MSMEs) that he said are facing a “crisis of survival” due to the ongoing Middle East conflict.

In a statement, the Bagan MP warned that rising logistics costs, supply chain instability, and the threat of soaring oil prices pose a real threat to the backbone of the Malaysian economy.

“Talk of being business-friendly must be spelled out in results-oriented action and practical solutions,” Lim said, highlighting that MSMEs contribute nearly 40 per cent to the nation’s GDP and employ almost half of the total workforce.

To contain costs and protect businesses, Lim proposed a moratorium on new financial burdens, which would include suspending increases in the Sales and Service Tax (SST), halting the mandatory e-invoicing implementation, and pausing the 2 per cent Employees Provident Fund (EPF) contribution for foreign workers.

He also called for targeted aid, such as grants, subsidies, and interest-free loans for businesses most affected by rising operational costs, alongside a regulatory reset to protect local companies and liberalise the recruitment of foreign workers by maintaining the current quota.

Lim said the recent unhappiness among some business owners over the “surprise” Hari Raya holiday announcement belied their deeper preoccupation with declining business prospects caused by global instability.

“The government must realise that MSMEs are facing a real crisis of survival with the ongoing Middle East conflict,” he concluded. - malaymail