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Allot states 5 pct of income tax to help SMEs — Amirudin

7 Mar 2024, 10:21 AM
Allot states 5 pct of income tax to help SMEs — Amirudin
Allot states 5 pct of income tax to help SMEs — Amirudin

By Amar Shah Mohsen

KUALA LUMPUR, March 7 — Gombak MP Dato’ Seri Amirudin Shari has urged the Federal government to redirect a portion of its corporate tax collection to the states to allow them to help with the development of small and medium enterprises (SMEs).

Speaking in the Dewan Rakyat, the Selangor Menteri Besar proposed that five per cent of the overall collection annually be distributed to the states based on their respective performances in aiding the industry's growth.

“What is wrong if the government pinches five per cent out of the RM106.4 billion in corporate tax it collected in 2023, which accounts for about RM5.3 billion, to be distributed?

“The development of SMEs cannot be focused just on the Federal level. States must also be entrusted with this responsibility,” he said when debating the royal address today.

Previously, on February 7, Amirudin had made a similar suggestion for a portion of the corporate tax paid by entities based in Selangor to be redirected to the state.

He emphasised the importance of exploring additional income streams for the state, particularly considering its significant contribution to the national economy, which stood at 25.5 per cent in 2022.

In his speech today, Amirudin also emphasised the importance of SMEs to Malaysia, noting that they make up 97 per cent of the overall registered companies and contribute 38.2 per cent to the national gross domestic product.

The industry plays a crucial role in ensuring Malaysia’s economy continues to grow.

The Parti Keadilan Rakyat lawmaker also cited Japanese carmaker Toyota as an example of how a company should restructure their businesses to meet current demands.

“In the 1990s, Japan was famed for manufacturing small-sized and affordable cars. Later, these companies improved their quality and conducted their research. Today, the biggest car manufacturer is Toyota, which is from Japan.

“I am not suggesting we should just focus on this sector, but what we need to prioritise immediately is the quality of our talent pool, digitalisation, and ease of doing business.

“It is crucial to enhance these three aspects to empower SMEs,” he said.

[caption id="attachment_287712" align="aligncenter" width="826"] Sultan of Selangor Sultan Sharafuddin Idris Shah Alhaj (centre) graces the launch of GS Paperboard and Packaging Sdn Bhd’s (GSPP) Paper Machine 3 (PM3) paper factory, accompanied by Menteri Besar Dato’ Seri Amirudin Shari (second from right) and Japanese Ambassador to Malaysia Takahashi Katsuhiko (right), Kuala Langat, on October 27, 2022. — Picture by AHMAD ZAKKI JILAN/SELANGORKINI[/caption]

Let us celebrate pluralism

On a separate matter, Amirudin urged Malaysians to celebrate multiculturalism better, especially since the nation will take over the Asean chairmanship next year

It would be difficult for Malaysia to be recognised as a good host if its citizens adopt a closed culture mentality.

“When we talk about Asean’s interests, they not only revolve around countries within the association, but also our dialogue partners like Australia, the United States (US), South Korea, and China.

“As such, our awareness and consciousness towards Asean should be further improved,” he said.

Amirudin also lamented the fact that despite being one of its founding members, a recent survey found Malaysians lacking knowledge about Asean.

“At a time when the US, Europe, and several other places are facing crises, Asean, led by Malaysia, has the opportunity (to advance), especially as our region is mainly peaceful and stable.

“Maybe there are several things which we (Malaysia) must improve, and I believe this requires our attention, including building on the concept of togetherness and strengthening the Asean community so we can live in peace together,” he said.

 

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