Financing Support Scheme for SMEs Included in the 2018 Public Budget

Updated on Wednesday 20th December 2017

Malaysia’s Budget for 2018 includes a series of investment-favorable initiatives, meant to support the growth of small and medium-sized companies. Officials also believe that in 2018 private investment will outperform the public investment. Our lawyers in Malaysia highlight the main changes included in the Budget and how small and medium-sized companies could benefit from them.

Small and medium companies, favored by the new Budget

The Budget for 2018, as presented by the Malaysian Prime Minister and the Minister of Finance, includes a number of business-oriented changes, such as venture capital tax incentives or a GST relief for some types of business activities.

A notable change is that the Malaysian Government plans on introducing a special financing support scheme and a range of subsidies and training grants for small and medium-sized companies in the country. The goal is to support the goal of these types of companies so that the SME sector could account for 41% of the country’s GDP by the year 2020.

It is believed that in 2018 private investment will surpass public investment. The prediction was made in light of the constant promotion of two Government initiatives, the Principal Hub tax incentive and the five Main Corridors. One of our attorneys in Malaysia can give you further information on these programs for investment in the country.

Other issues included in the 2018 Budget

Malaysian officials have also focused on a number of other different initiatives, all oriented towards business. For example, venture capital activities will be promoted through a new type of incentives like income tax exemptions and incentives for angel investors or individual investors.

Companies in Malaysia that engage in airline transportation and shipping will benefit from GST relief. This will also cover oil and gas companies, although only for some types of activities. One of our lawyers in Malaysia can give you more details about these GST changes.

You can contact our law firm in Malaysia for more information about how the changes for the 2018 Budget will influence your business.