Consortium welcomes RM57 billion in financing and guarantees but urges help for Malaysian companies to break into Central Asia and other untapped markets
| IN BRIEF: – MCMTC welcomes the RM57 billion in loan facilities and financing guarantees – Says success should be judged by “how effectively businesses benefit”, not how much is allocated – Urges support for mid-tier firms to enter Central Asia and other non-traditional markets – Concerned over rising wages, utilities, financing and compliance costs – Calls for industry-led training and greater policy certainty |
By TENGKU NOOR SHAMSIAH TENGKU ABDULLAH
KUALA LUMPUR, Oct 13 – Budget 2027 should be judged “by how effectively businesses benefit” rather than by how much the Government allocates, the Malaysian Consortium of Mid-Tier Companies (MCMTC) said, calling for faster delivery of incentives and stronger support for Malaysian firms to break into new overseas markets.
In a written respond to TNS News, MCMTC president Martin Ang said: “The success of Budget 2027 should not be measured by how much the Government allocates but by how effectively businesses benefit.”
He added: “What businesses need is not more announcements, but real opportunities, measurable outcomes and sustainable growth.”
The consortium called for faster implementation, simplified procedures and greater access to incentives, particularly for mid-tier companies.
FROM SURVIVAL TO GLOBAL CHAMPIONS
MCMTC welcomed the RM57 billion in financing and guarantee facilities announced by Prime Minister Datuk Seri Anwar Ibrahim, together with incentives for automation and digitalisation.
Ang added: “However, greater priority must be given to helping mid-tier companies expand internationally, strengthen productivity and penetrate new markets, including Central Asia and other non-traditional, untapped trading markets.”
He said the Government should provide targeted support, market intelligence, trade facilitation and business-matching to help companies establish a presence in such markets. “Malaysia must move beyond supporting business survival towards building globally competitive Malaysian champions.”
The budget allocates RM60 million to MATRADE to support local companies entering new overseas markets and diversifying their export destinations, while Bank Pembangunan Malaysia Berhad (BPMB) will provide RM1 billion in financing for MSMEs venturing into export markets.
“Malaysia must move beyond supporting business survival towards building globally competitive Malaysian champions.”
MARTIN ANG, PRESIDENT, MCMTC
COSTS RISING FASTER THAN PRODUCTIVITY
The consortium said it remained concerned about rising operating costs, particularly wages, utilities, financing and regulatory compliance.
According to Ang: “Businesses cannot remain competitive if costs continue rising faster than productivity. The Government must ensure that growth policies do not unintentionally weaken Malaysian enterprises.”
Under the budget, the minimum wage will rise from RM1,700 to RM2,000 a month from June 2027, although micro, small and medium enterprises (MSMEs) with annual sales below RM50 million are exempted.
THE TALENT GAP
MCMTC said businesses continue to struggle to recruit and retain talent in areas such as advanced manufacturing, digital technology, engineering and management, and urged stronger industry-led training, reskilling and upskilling.
Ang said: “A competitive economy requires not only capital and technology but also the right talent to drive innovation and growth.”
CERTAINTY FOR INVESTMENT
The consortium also called for stronger coordination across ministries and agencies, warning that frequent regulatory changes, overlapping requirements and lengthy approvals “can increase uncertainty and discourage investment and expansion.”
It urged clearer implementation timelines, more systematic consultation with businesses and fewer administrative burdens.
Ang said: “Policy certainty is essential for companies to make long-term investment decisions, create quality jobs and contribute more meaningfully to Malaysia’s economic development.”
WHAT BUDGET 2027 OFFERS BUSINESS
Budget 2027, tabled in the Dewan Rakyat on 9 October, has total resources of RM510 billion. Loan facilities and financing guarantees rise from RM50 billion to RM57 billion, and SJPP will extend its guarantees to mid-tier companies across all sectors, with the limit raised to RM50 million.
RM2.1 billion from the NIMP fund, KWAP’s Dana Pemacu and Khazanah’s MTC Fund is earmarked for mid-tier companies in E&E, digital technology, aerospace and medical devices.
Accelerated Capital Allowances for locally produced machinery and ICT are extended to 2030, an RM30 million MDEC fund will help 4,000 MSMEs adopt AI and automate, and MSME income tax falls by one point to 14 and 16 per cent.
On talent, TVET allocations across ministries total RM8 billion and HRD Corp will offer three million skills training opportunities.
- TNS NEWS