KUALA LUMPUR: Deputy Finance Minister Datuk Donald Lim Siang Chai says he will not agree to providing incentives to telecommunication companies (telcos) for deferring their plan to impose a six per cent service tax on prepaid users.
Commenting on the suggestion by Information Communications and Culture Minister Datuk Seri Dr Rais Yatim yesterday, Lim said such a move was unnecessary at the moment as all telcos
in the country were doing well.
“Unless they are not making money, only then we have to think of otherwise,” said Lim after opening the Small and Medium Enterprises (SMEs) Financial Solutions seminar 2011 here yesterday.
Lim also urged local and foreign banks operating in the country to expand their assistance to SMEs for them to create more jobs, thus contributing to the country’s economy as a whole.
“The Finance Ministry as well as Bank Negara are concerned on this area as the amount of money lent to SMEs are not in line with its contribution to the country’s economy,” he said.
Of the RM950 billion lent by banks, only RM55 billion were given to SMEs based on latest figures, he said.
Currently, SMEs contribute 32 per cent to the country’s gross domestic product (GDP), 59 per cent of the total workforce and 19 per cent of total exports.
“We hope banks can be more aggressive in this regard as the government continues to push forward its Economic Transformation Programme (ETP), which requires SMEs to invest in research and development and buying new equipment,” said Lim. — Bernama
Jointly hosted by SMI Association of Malaysia and MCA SME Development Bureau, the opening ceremony of the seminar also saw the attendance of the National President of SMI Association of Malaysia, Chua Tiam Wee. — Bernama