[KUALA LUMPUR] Malaysian Prime Minister Anwar Ibrahim announced measures to help reduce cost burdens for small and medium enterprises in the South-east Asian country, according to a Bernama report, days after his coalition performed poorly in state legislative elections in Sabah.
Anwar has raised the threshold to exempt businesses from an e-invoicing initiative by the Inland Revenue Board to RM1 million (S$314,222) in annual revenue from RM500,000, Bernama said. He also doubled government funds to expedite tax refunds to small businesses, to RM4 billion from RM 2billion, according to the report.
Anwar announced the measures in Sabah, the news agency said. The prime minister’s Pakatan Harapan coalition won only one seat in the state’s elections last week.
The Democratic Action Party (DAP) – a major partner in Anwar’s coalition and the government party with the most parliamentary seats – has warned that the costs for small businesses are eroding support for the administration.
The DAP lost all eight seats it contested in Sabah and declined to join the state government even though Anwar’s ally Hajiji Mohd Noor managed to form a government and retain power.
DAP party adviser Lim Guan Eng, a former finance minister, has been vocal in criticising costs for small businesses.
Opposition lawmaker and former trade minister Azmin Ali separately claimed that the performance in the polls signalled a loss of support from businesses, which are mostly made up of ethnic Chinese – the bedrock of the DAP’s support base.
Anwar is due to dissolve the current parliament by the end of 2027, but will contend with three state legislative polls before that in the states of Melaka, Johor and Sarawak. BLOOMBERG
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