KUALA LUMPUR, Nov 2 ― Tax exemptions, easier access to loans and grants, lower government fees, workers who can speak English ― those are some of the things businessmen are asking for ahead of the tabling of Budget 2019.
Malay Mail spoke to seven businessmen based in the Klang Valley from the F&B, property, entertainment, and education sectors, among others, about the policies needed to grow their business and the economy, as Malaysia faces slower economic growth prospects in the months ahead.
This is what they had to say:
Renyi Chin, myBurgerLab co-founder, Klang Valley
The 37-year-old businessman, whose burger joint has five outlets in Petaling Jaya, Kuala Lumpur, and Cyberjaya, wants a review of the Employment Act, which he says is too pro-employee as it is very difficult to terminate workers, whereas staff can quit immediately after they get their salaries.
"Also, businesses are charged for services so companies are essentially paying twice for services tax. Basically the SST (sales and services tax) is not exactly business-friendly at the moment. We wish that the government can look into allowing group SST exemption for intercompany, whereby central kitchen and retail stores are under the same group but are of different entities.
"Education is where the country needs the most help in. We work with a lot of young people in our industry and the standard of English and ability to communicate desperately needs improvement.”
Burhanuddin Md Radzi, Les’ Copaque Production managing director, Shah Alam
‘Upin and Ipin’ producer Burhanuddin Md Radzi says since Pakatan Harapan took over, the government took all the money without providing any allocation for the industry. — Picture courtesy of Burhanuddin Md Radzi
The producer of the Upin and Ipin cartoon wants the government to help businesses open up new markets overseas and to reduce grants that are often abused by entrepreneurs and civil servants, but instead provide cheap loans that can be turned into grants if the business is successful.
"In the entertainment industry, each movie ticket is charged 25 per cent entertainment tax. During the Barisan Nasional administration, the collection from local films was returned to the industry, where 1 per cent was allocated to the Malaysian Film Producers Association to help local producers develop the industry and some of it was returned to the film producer, while the rest was channeled to Finas (National Film Development Corporation Malaysia) to develop the industry.
"But since Pakatan Harapan took over, the government took all the money without providing any allocation for the industry. We hope that a part of the collection can be given back to the entertainment industry because this industry is a high-risk business which needs assistance.”
Shannya Preeya, Black Burlap CEO, Petaling Jaya
Shannya says there should be more funding and investment programmes for small businesses, as well as access to small-scale business loans. ― Picture by Saw Siow Feng
The 27-year-old florist wants more funding and investment programmes for small businesses, as well as access to small-scale business loans.
"I think we should work on lowering property prices, especially for rent, or raising the minimum wage.
"Designated spaces should be made available for rent for cheap to start-ups and small businesses to carry out operations.”
Thomson Bee, property businessman, Kuala Lumpur
Property businessman Thomson Bee says the local authority over-employ staff in the office. — Picture courtesy of Thomson Bee
The 54-year-old, who builds medium-cost apartments in places like Banting, Sg Long, and Gombak, questions how cheaper housing can be provided when foreign workers cost a lot, while Kuala Lumpur City Hall and local authorities in Selangor impose heavy fees on development projects.
"They take a lot of fees ― development charges, premium for commercial land, submit building plan have to pay, submit engineering plan have to pay, deposit [for] ‘longkang’.
"Why local authority take a lot of money? They over-employ staff in the office. Most staff in local authority not active. Nine-thirty ‘minum teh’, 12 o’clock go and take their children, 4.30 they go back. This is cost.”
Nicholas Thang, Niche Flavours Holdings founder and director, Klang Valley
Thang says he has difficulty hiring local waiters despite offering a monthly salary between RM2,000 and RM3,000. — Picture courtesy of Nicholas Thang
The 28-year-old who runs an F&B consultancy that has opened 48 restaurants in Malaysia, Singapore, Indonesia, Myanmar and the Philippines; a central kitchen; and a snack manufacturing company complains about the high cost of foreign labour, as registration costs RM7,000 to RM8,000 and annual renewals cost about RM2,800.
He has difficulty hiring local waiters despite offering a monthly salary between RM2,000 and RM3,000, as Malaysians with a "superstar” attitude prefer to be supervisors instead of doing the dishes.
Thang suggests allowing businesses to use a loan to pay foreign workers’ fees over a period of time, rather than imposing a one-off RM7,000 to RM8,000 fee.
"Provide SME grants in terms of tech and machinery, something like what Singapore has, because Malaysia is trying to come out of foreign labour but Malaysians also don't want to work. To boost the economy, there's of course machinery that can help to solve all these problems, but they're really expensive, especially with the exchange rate.”
Rajdish Singh Malhi, Edvance Asia, director of learning and design, Kuala Lumpur
Rajdigh wants Budget 2019 to focus on education and human capital development. — Picture courtesy of Rajdish Singh Malhi
The 32-year-old, whose business creates academic and skill-based courses and programmes, wants Budget 2019 to focus on education and human capital development by channeling more funds to housing, education, and employment, so that Malaysia will have a more able workforce.
"For businesses, the Budget should enable the adoption of learning systems, tools and technologies that enable learning at the speed of business.
"For the education industry, development of the TVET vertical is vital. Funding to enable the concept of dual track education (like the German system), which serves as an apprenticeship programme between education players and the industry.”
Abdul Manaff Yusoff, PPAD Ecotech Energie Sdn Bhd executive director, Shah Alam
Abdul Manaff says it is time for the government to focus on infrastructure in rural areas. — Picture courtesy of Abdul Manaff Yusoff
Abdul Manaff, whose company provides an integrated complex for centralised pig farming in Tanjung Sepat, wants Budget 2019 to allocate funds for environmental protection. The 50-year-old is also a Shah Alam city councillor.
"We propose to the Selangor state government to integrate pig farming. At the moment, all the farmers are scattered everywhere. What we propose now, do centralised integrated farming. On top of that, propose biogas. So whatever discharge from pig farming, it will generate biogas, so there will be zero discharge.
"It’s time for the government to focus on infrastructure in rural areas. Give extra budget to JKR (Public Works Department) and the Department of Irrigation and Drainage.”
* A previous version of this story contained an error which has since been corrected.
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