MSMEs Loan Facilities, Financing Guarantees Increased To RM57 Bln

KUALA LUMPUR, Oct 9 (Bernama) -- Loan facilities and financing guarantees for micro, small, and medium enterprises (MSMEs) will be increased to RM57 billion in 2027 from RM50 billion, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Finance Minister, said the government will the income tax rate for MSMEs by one percentage point.

"The rate for the first RM150,000 of chargeable income will be reduced to 14 per cent.

"The rate for chargeable income in the RM150,000 to RM600,000 range will be reduced to 16 per cent.

"This means MSMEs will see an increase in income of up to RM6,000," said Anwar while tabling the 2027 Budget in the Dewan Rakyat today.

The government also proposed to raise the value threshold for each small asset eligible for capital allowances to RM3,000.

For companies other than MSMEs, the overall claim limit will be raised to RM30,000.

Anwar said manufacturers may reclaim sales tax on machinery, spare parts, and equipment purchased from local traders or distributors.

This facility includes raw materials used to produce pharmaceutical products, animal feed, fertilisers, and pesticides.

"To boost local companies' productivity, the accelerated capital allowance for expenditure on local plant and machinery, and ICT equipment and software, has been extended until Dec 31, 2030,” he said.

To assist the cash flow of MSMEs via banks’ credit facilities to mid-tier companies, he proposed agreements utilising excess credit — executed between Jan 1, 2027, and Dec 31, 2030 — be subject to a stamp duty of only RM10.

Loan agreements made via peer-to-peer (P2P) financing platforms during the same period will also be subject to a stamp duty of only RM10.

There will be a full stamp duty exemption when opening savings and current accounts starting Jan 1, 2027.

-- BERNAMA