RM57 Bln Financing Facilities From Budget 2027 To Support Business Growth — FMM
KUALA LUMPUR, Oct 9 (Bernama) -- The increase in total loan facilities and financing guarantees to RM57 billion in 2027 will strengthen businesses’ access to financing and support their investment needs, said the Federation of Malaysian Manufacturing (FMM).
Its president Jacob Lee Chor Kok said the facilities include RM32 billion in guarantees through Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC).
“The extension of SJPP coverage to mid-tier companies across all sectors, the higher guarantee limit of RM50 million and the allocation of RM1 billion in guarantees for local companies’ expansion through mergers and acquisitions will support investment, business growth and industrial consolidation,” he said in a statement today.
He said FMM also welcomed the one percentage point reduction in small and medium enterprises’ (SME) income tax rates to 14 per cent on the first RM150,000 of chargeable income and 16 per cent on the next RM450,000, providing tax savings of up to RM6,000 per eligible enterprise.
Lee said the review of the reinvestment allowance could encourage existing manufacturers to reinvest in automation, advanced technology, modernisation and capacity expansion.
“Supporting both new investment and reinvestment will be essential to strengthen industrial competitiveness and create higher-value employment,” he added.
He said FMM also welcomed the RM60 million allocation to the Malaysia External Trade Development Corporation to strengthen Malaysian companies’ capacity to penetrate and diversify export markets, complemented by RM1 billion in Bank Pembangunan Malaysia Bhd financing to support SMEs venturing abroad.
-- BERNAMA