KUALA LUMPUR, Aug 11 — DAP adviser Lim Guan Eng today said six measures he proposed to help micro, small and medium enterprises (MSMEs) cope with rising costs and economic pressures had been rejected by the government.

In a Facebook post today, the Bagan MP said he had presented the proposals to Prime Minister Datuk Seri Anwar Ibrahim during a meeting on July 20, including raising the annual turnover threshold for e-Invoicing to RM5 million.

The other proposals were to establish a special taxpayers’ tribunal for individuals and MSMEs, abolish the two per cent Employees Provident Fund (EPF) contribution by employers for foreign workers, and streamline foreign worker approvals through comprehensive digital and online processing.

He also proposed a one-year moratorium on interest payments for existing MSME loans, as well as RM5 billion in interest-free and collateral-free financing for 100,000 MSMEs, capped at RM50,000 per business.

Lim said the measures were necessary to ensure the survival of 1.1 million MSMEs in Malaysia, which he said contributed 38 per cent to the country’s gross domestic product (GDP), accounted for 48 per cent of employment and nearly 13 per cent of total exports.

He also said the banking industry should play a greater role in supporting MSMEs, pointing to an increase in pre-tax profits in the sector from RM48.3 billion in 2024 to RM54.8 billion last year.

Lim said the six proposals were rejected in a July 23 letter from Treasury secretary-general Tan Sri Johan Mahmood Merican in response to his earlier letter to Anwar dated April 8.

However, the letter did not expressly state that the proposals had been rejected, saying instead that the Finance Ministry would examine them comprehensively, taking into account the government’s financial position, current policy priorities and the potential multiplier effects on the economy.

The ministry also said the government had already implemented several measures to support MSMEs affected by rising operating costs, including RM5 billion in guarantees under the Business Financing Guarantee Company (SJPP).

It said the implementation of Phase Four of e-Invoicing for businesses with annual sales of between RM1 million and RM5 million had been postponed until December 31, 2027.

The ministry also said it was considering an import duty exemption for the re-importation of Malaysian-made goods that could not complete the export process due to disruptions caused by the conflict in West Asia, until December 31 this year.

Johan said the government remained committed to ensuring the MSME ecosystem remained resilient and able to adapt to changing circumstances, adding that Lim’s proposals would be assessed based on their suitability and effectiveness in improving government policies.