KUALA LUMPUR: The Selangor Menteri Besar has proposed that the federal government allocate 5 per cent of the annual corporate income tax revenue to be distributed to the states based on the state’s achievements in developing small and medium enterprises (SMEs).
Datuk Seri Amirudin Shari, who is also the Member of Parliament for Gombak, said this is because SME development programmes cannot be focused only at the national level.
“What’s wrong if every year the government pinches at least 5 per cent of this (tax), equivalent to RM5.32 billion from the collection of corporate tax revenue of RM106.42 billion in 2023.
“The states should be responsible for developing SMEs because by developing this sector, indirectly, we will be able to develop the economy and be able to be a buffer for the problems we may face,“ he said when debating the motion on the royal address in the Dewan Rakyat today.
Amirudin also said that to provide opportunities and space for Malaysia to develop more rapidly in creating a vibrant economy, the country also needs to strengthen its competitiveness to explore opportunities to become an economic leader, especially in Asean, rather than simply being a ‘feeder’ to other countries.
“Gombak is of the view that there are at least two areas in which Malaysia has advantages, namely in energy production, especially from renewable sources, as well as being the first country in Asia to have all the equipment in high-end training in the technical and vocational field (TVET).
“To achieve this aspiration, we must have an innovation ecosystem by developing a National Innovation System,“ he added. – Bernama
