The SME Association of Malaysia welcomed Budget 2027’s consumption and investment measures but warned the cumulative cost of doing business remains the sector’s biggest obstacle, with president Chin Chee Seong saying SMEs want measurable results, not just allocated funds. This matters because the pushback is specific and quantified: the one-percentage-point corporate tax cut saves a maximum RM6,000 a year (RM500 monthly), called insufficient against rising costs, the RM30 million AI/automation fund works out to RM7,500 per enterprise across 4,000 SMEs, called too thin for real transformation, and the minimum wage rise to RM2,000 is flagged as a potential 17.6% cost increase that could hit margins and hiring even with the MSME exemption. SMEs across sectors, particularly those managing financing access through SJPP and CGC guarantees, may be affected, with Chin calling for a formal cumulative-cost-and-regulatory-impact assessment before further major policy changes, a request still pending government response.

 

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