Monday, August 10

Better financial management for SMEs once GST implemented


KUALA LUMPUR: Small and medium enterprises (SMEs) will be able to benefit in many areas of businesses, particularly in terms of improved financial management, once the goods and services tax (GST) is implemented, said SME Corp’s chief executive officer, Datuk Hafsah Hashim.

She said the agency has adopted a proactive role in partnering with the Ministry of Finance and the Royal Malaysian Customs Department to educate the SMEs and increase their awareness on GST and how to implement it in their business operations once the tax system was implemented.

“For companies to take advantage of GST, they need to have proper accounts.

“To prepare for that, the financial management and record must be put in order first,” she told reporters after the launch of its annual award programme, Enterprise 50 (E50), here yesterday.

She said it was important for SMEs to be aware of the new tax system and make them ready to come onboard once it was being implemented.

To-date, there were 943,000 active business establishments registered under Companies Commission of Malaysia, Hafsah said.

On the award, she said, the participation format would be different as it would be by invitation only.

“Over 400 companies with score rating of four stars and above will be automatically invited to participate.

“From this, the best 50 SMEs will be selected based on how they position themselves in the future and how they bring themselves from one level to another,” she said.

Hafsah said this pool of companies was no longer expanding through natural organic growth but was able to chart high growth that would contribute significantly to the country’s economy.

To-date, the award programme has attracted a total of 1,673 participants and has established an association of 511 companies.

Started in 1996, the E50 Award programme was designed to enhance the visibility of companies, especially awarding those which have shown resilience in withstanding the global economic uncertainties. — Bernama