KUALA LUMPUR, Oct 9 — 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 reduce 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," he said while tabling Budget 2027 in the Dewan Rakyat today.
The government has 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 noted that 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 December 31, 2030,” he said.
To support MSME cash flow through banks’ credit facilities for mid-tier companies, the Prime Minister proposed that agreements using excess credit — executed between January 1, 2027, and December 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 January 1, 2027.
