2010 Budget feedback from Small and Medium Industries Association of Malaysia With Yb Tiam Chua

  1. Consumer Purchasing power adversely affected:
F & B dropped by 15%
Fashion and garment dropped by 25%
Daily consumer products also affected

Stimulus package amounting to RM60 billion by the govt should be directed towards boosting domestic consumption instead of a more long term prime pumping confined to  infras projects  and construction, of which would take a longer gestation period to chain effect to the domestic to be spilled over by these sectors

Coupled with lack of liquidity, as a result consumers suffered and forced to tighten up their belts.

  1. Competitiveness and company tax: Suggestion to reduce company tax and income tax by phases to reach 18%

3.GST expected to be implemented soon .Govt spend RM140 million  to implement the system .GST shall replace the present Sales Tax and Service Tax structure
Suggestion: Govt should simplify the GST tax regime by removing the multiple taxing system (5 layers ) and refund ,thus saving administrative cost on the private sector , because eventually consumers are paying GST 

.Instead of the proposed 5% GST ,govt should consider reducing it to around 3%
On the other hand,by imposing GST ,govt should find way to repocicate the tax collected to allow taxpayers to feel the benefit of welfare by the govt..

4. Proposed double tax deduction for first year for wages increased of workers
Of SMIs. To encourage wages increase for workers.

5.Cut down  oversupply of energy reserve from the present 30-40% to a more realistic level as compared to other country which are much lower, so to benefit SMIs ,so that SMIs can enjoy lower tariff as compared to the present rate.

On the other hand, addressing the issue of energy from the source ,by lowering the price from Petronas  from the supplying source ,Petronas ought to play a more meaning role to assist SMIs to improve their competitiveness in the international market.

6. Charity tax exemption should be increased from the present 7% on the net income of SMIs in tandem with the promotion of a caring society. Provide more relief to handicapped and under-privileged people

7.Do away with Indah Water .sewage fee and abolish the exorbitant toll rate ,these should be able to increase the purchasing power of the consumers.

      8 On foreign workers:  SMIs required the service of foreign workers for Malaysian manufacturers to remain productive and their products to remain competitive in the market especially export market.

  The present Levy imposed on foreign workers are too high ,as foreign workers are very much needed  to do the labour jobs where locals shy away. Malaysia ought to maintain its foreign workers policy and extend the work permit of them in order that skilled and experience workers are retained for manufacturers.

Suggestion: Lower the levy of foreign workers , and allow longer service foreign workers whom are more experienced  to extend their work permit ,as their skill and experience are
an added value for local manufacturers.   And for foreign workers whom had landed and worked in Malaysia for a certain period., legalizing them is the most  effective way to solve the issue of illegal foreign workers . 


Lee Teck Meng 's Profile

Lee Teck Meng, currently the secretary general of small medium industry association of Malaysia, use to represent association for government dialogue to give suggestion and get a change to participate on formulation of government industry and economic policy.

I am also a managing director of kleenso resources sdn. bhd., a marketing and distribution house of household detergent, had created a house brand "Kleenso", can visit my web , beside that i also a national distributor of a indonesia leading brand battery "ABC", distributor of bio-degradable garbage bag, industrial detergent, car care product.

I also managed to pack my formula of detergent for multi national company asia leading brand product, from Australia, United kingdom and Japan. Also a contract manufacturer for many brand for malaysia company especially the multi level marketing company