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19 Nov 2021

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How Can Entrepreneurs Benefit from Budget 2022?

Budget 2022 is more sensational than the iconic hand-shaking deal between the left and right-wing parties of the country. Announced on 29 October 2021 by Minister of Finance Tengku Zafrul Aziz, this most generous money allocation plan of the decade opens doors of opportunities for all startups and entrepreneurs

The forthcoming national budget plan envisions a warm and inclusive theme that reads Keluarga Malaysia, Makmur Sejahtera (A Prosperous Malaysian Family). To elaborate, all publicly-listed companies are required to appoint at least one (1) woman to their board of directors. In addition, Women Leadership Foundation receives RM5 billion in bolstering female involvement in the economic sector.

 

Supports for All Industries 

What about us? Men must wonder. Let’s have a look at the epic offerings of Budget 2022 that make provisions for entrepreneurs as well as small and medium-sized enterprises (SMEs) across all industries.  

 

Programmes / Initiatives Beneficiaries  Financing Amount (RM / %)
Apprenticeship Incentives Employers who employ apprentices, namely school leavers and graduates aged 18 to 30 years,  RM900 a month for six months
Central Bank of Malaysia(BNM) ’s SME Special Funds All SMEs RM14.2 billion
– Equity Injection – Bursa-listed companies that were affected by the Covid-19 pandemic as viable candidates – At least RM3 billion
– Special Strategic Investment Fund – Companies to attract strategic foreign investment among multinational companies – RM2 billion
– Targeted Relief & Recovery Facility(TRRF) – SMEs in the services sector affected by the reintroduction of COVID-19 – Additional RM2 billion
Collaboration with Industries Incentives (Including the National Dual Training System (SLDN) and industry certification programmes) Employers who want to have joint ventures with other industries RM200 million
Cradle Fund (MyStartup strategy) 5,000 job opportunities for over 2,500 companies RM20 million
Funding Avenues via Equity and Quasi-Equity Investments  Companies with gearing or leverage issues RM2.1 billion 
Hiring incentive Employers who provide employment opportunities for specific groups like People With Disabilities (OKU), Orang Asli and ex-convicts,  – 30% of the monthly salary for the first six (6) months 

– 40% for the next six months of the job

– Salary of RM1,200 and above

Innovation Hub: The Fourth Industrial Revolution ( IR4.0) 10,000 entrepreneurs RM30 million
Industry4WRD  SMEs and companies in manufacturing and servicing RM45 million
Jamin Kerja Keluarga Malaysia  (JaminKerja)  Employers who hire Malaysians who have not been actively employed RM4.8 billion

– 20% of the first 6 months’ salary

– 30% of the following 6 months’ salary

– For up to 300,000 hired employees with RM1,500 pay

Malaysia Short-term Employment Programme (MyStep) Employers in the Public sector and Government-Linked Companies (GLCs)  RM1.8 billion
Special Tax Exemption (until June 2022) Micro, Small, and Medium Enterprises (MSMEs) As per the company size
Trade and Investments Support Companies to explore high-impact investments and export markets through the Trade and Investment Mission RM25 million
Training and upskilling programmes

– Tax exemption for attending upskilling courses

220,000 trainees RM1.1 billion

– RM2,000

Wage Subsidy Programme 26,000 employers and 330,000 employees RM600 million

 

Industry-Specific Aids

As you have already gotten an overview of Budget 2022, it’s time to check out how it benefits or supports every industry on a micro-level.

Industries Programmes / Initiatives Financing Amount (RM / %)
Aerospace – Bumiputera SMEs business matching grants

– Smart automation matching grants (For 200 manufacturing and servicing companies)

– RM100 million

– RM100 million

Agriculture  Farming and fishing industries subsidies and incentives RM1.7 billion
– Fish fry, fertilisers, price and production subsidies – RM1.5 billion
– Padi huma fertiliser subsidies – RM40 million
Agrobank and Bank Negara Malaysia (BNM) financing programme RM1.25 billion
– Zero-interest micro-financing for the first six (6) months (Coupled with a moratorium of up to six months) – RM75,000
– Monsoon season aid for  320,000 B40 smallholder farmers – RM190 million
Arts & Culture  Overall Support

– Agencies Support 

(The Cultural Economy Development Agency (Cendana), the National Film Development Corporation Malaysia (Finas), and MyCreative Ventures)

RM50 million

– RM188 million

ESports Development and Support  

 – Drone sports excellence centre

RM20 million

– RM5 million

Gig Industry Housing Credit Guarantee Scheme

(Also applicable to small entrepreneurs and farmers)

RM2 billion
Retail “Buy local” shopping campaigns

(Buy Malaysian Products Campaign, Mega Sales Programme and the Khazanah Alam Industri direct selling programme)

RM33 million
Tourism Overall Support RM1.6 billion
– Penjana Tourism Financing and BPMB Rehabilitation Scheme – RM600 million
– 3-month special assistance for over 20,000 tourism operators – RM85 million
– Renovation of budget hotels and homestays. – RM30 billion matching grants
– Tax Rebate for domestic tourism
(extended until 2022)
– RM1,000

 

So, what say you? Does Budget 2022 have what it takes to realise all its monumental visions? The visions of the budget of the year are protecting and driving the recovery of lives and livelihood, rebuilding national resilience, and catalysing reforms. 

While we go through the motion of parliamentary debates and budget vote, why not start your new business through CORPSO? Everything is simple, fast, and convenient. You can confidently manage your business through CORPSO App in a few taps, including appointing your first female board of directors. Speak to us now and enjoy a one-stop solution for company incorporation!

View full report of Malaysia Budget 2022: Link