The 2024 Malaysian budget introduces pivotal initiatives targeted at advancing small and medium enterprises (SMEs) into the digital era.
On October 13, 2023, Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced the details of the second Madani budget emphasising the government’s commitment in encouraging SMEs towards digitalisation and automation, with the ultimate objective of building sustainable business practices by introducing grants and initiatives.
In this article, we will study the grants and initiatives designed to stimulate the automation and digitisation of Malaysian SMEs.
Grants for Digital Upgrades in Sales, Inventory and Accounting Systems
A substantial sum of RM100 million has been allocated for digital grants, enabling more than 20,000 small and medium enterprises (SMEs) and micro-entrepreneurs to access grants of up to RM5,000 each. Read how to apply.
Grants to Encourage E-Commerce
Shop Malaysia Online (SMO) initiative, allocated RM40 million, is geared towards boosting the e-commerce sector. The 2024 implementation of the Shop Malaysia Online Program aims to facilitate small traders, especially those in the food sector, in conducting business through e-commerce channels.
Strengthening the Role of Digital Economic Centres (PEDI)
A noteworthy budget allocation of RM25 million has been dedicated to enhancing Digital Economy Centres (PEDI) in each State Legislative Assembly, marking a significant stride forward. This initiative seeks to uplift the socio-economic status of local communities by:
- Providing digital skills training to individuals irrespective of their social status or geographical location.
- Assisting small businesses in effectively selling their products online.
Ease of ICT Equipment and Computer Software Acquisition
The government is introducing a reduction in the timeframe for claiming capital allowance on expenses associated with the acquisition of ICT equipment and computer software packages, shortening it from 4 years to 3 years. This modification impacts the duration for claiming the Accelerated Capital Allowance (ACA), originally introduced in 2020. The ACA entails a 20% initial allowance and a subsequent 40% annual allowance for qualifying plant expenditures.
Conclusion
The 2024 Malaysian budget marks a strategic push towards fostering digital transformation among small and medium enterprises (SMEs). These targeted initiatives aim to empower businesses, elevate digital capabilities, and bolster the overall economic resilience of the country. This creates an opportune moment to examine and capitalise on the government’s initiatives. As a Malaysian SME business owner, there is potential for you to receive support that could substantially enhance your business success in 2024.
What's next for you?
Digitalisation of marketing and sales activities requires the implementation of CRM and Marketing Automation systems. Whether your business is already utilising such tools and seeking improvements or you are in the early stages of exploring these solutions, our team at “Lead Gen and CRM” by Constant Contact is here to assist you. Reach out to us to discover how our tool can contribute to scaling up your business in 2024.
