Dear Valued Customers,
Welcome to our E-Newsletter December 2019!
This month, we continue our focus on the upcoming changes to Malaysia’s tax regime post-Budget 2020.
Big Winnings for SMEs on the Tax Front
The Small and Medium Enterprises in Malaysia (SMEs) are a vital part of the business ecosystem in the country. Malaysia’s Budget for 2020 aims to help SMEs who will be the key beneficiaries of this budget. A range of tax enhancements were proposed by the government to help businesses.
SMEs are set to be the big winners of the 2020 budget, especially in terms of savings on tax rates. A tax deduction limit that is simpler and a lot more flexible will make it easier for filing purposes. That’s only one of the many tax benefits in the year ahead.
New Economic Corridor in the Works
2020 is looking like a very prosperous year indeed. The Malaysian Government has revealed its plans to create a New Economic Corridor. This plan is going to be tabled at the Economic Action Council (EAC). The Malaysia Prime Minister will chair the council. The new development’s “nucleus” will support the development of the smaller towns within the country from Johor to Kuala Lumpur.
Digital Economic Development
Malaysia will enjoy greater digital connection as more than RM50 million in funding has been allocated by Malaysia Debt Ventures Bhd (MDV). This fund falls under the National Fiberisation and Connectivity Plan-Vendor Development Programme (NFCP-VDP). The aim of the fund is to support the development of a digital economy.
Better Data Protection in the Works
Privacy laws and data protection changes are in the works. Malaysia is taking data protection very seriously. Agencies will levy fines on businesses who fail to notify users of any breach in data. Data protection for every business needs to be up to date moving forward. Online businesses generate a lot of revenue. Keeping safe in the ever-growing digital economy will remain a top priority.
In summary, a better and more business-friendly budget will offer businesses the incentives they need. As the nation continues to progress toward the digital transformation age, Malaysia is preparing to become the preferred business and investment destination in Asia.
It takes each one of us working together to help the nation’s economy flourish. We have the capabilities. Now we need to make sure we are leveraging on the advantages we have. I wish everyone a continued optimistic outlook for the final quarter of 2019.
Founder, 3E Accounting Group
Read More in our E-Newsletter December 2019.