27 June 2018
KUALA LUMPUR: The Minister of Finance, YB Tuan Lim Guan Eng, stated that it is on a case-by-case basis whether associations can enjoy tax exemption for donation. The Minister said associations can still request for a tax exemption and the Ministry shall make the final decision.
The Minister of Finance of Malaysia, YB Tuan Lim Guan Eng, made the above statement when the leaders of Malaysia-China Chamber of Commerce (MCCC) paid the Minister a courtesy visit.
In order to cater for the financial needs of local non-profit and non-governmental organisations, the MCCC proposed to offer tax exemptions to all associations when visiting the Ministry of Finance.
“We believe that all donations that help promote the civil society movement should be tax-free,” Tan Yew Sing, President of MCC said.
In order to respond to the call of the Malaysian government to gather constructive opinions from the civil society and community, the leaders of MCCC personally paid a courtesy visit to the newly appointed Minister of Finance, YB Tuan Lim Guan Eng, to present a proposal to him on the issues of economy, finance, taxation, people’s livelihood, foreign investment projects, emerging industries, and small and medium-sized enterprises (SMEs).
The MCCC sincerely thanked the Minister of Finance for listening to public opinion. It will fully support the Ministry of Finance to implement the promise made by the government to revive the economy.
“The MCCC consists of multi-ethnic members of SMEs. It is always concerned with the development of the country, especially the financing for SMEs. We believe that for local SMEs and start-up companies, Micro Credit is more effective in helping them to start, expand and transform. Therefore, we hope that the Ministry of Finance will provide more market freedom to allow more legitimate SMEs to obtain the loan," Tan said.
YB Tuan Lim Guan Eng also expressed that he places great importance on the operation, financing and environment of local SMEs.
“We have established financial institutions such as the SME Bank to provide micro-loan services. However, after I met Jack Ma, I learned that China has developed an advanced mode of “310 Internet Commercial Loans” (i.e., a three-minute application without human intervention).
This innovation and effort are worth thinking and implement in our country. In this era, 'small is beautiful, small is strong', the government will pay more attention to and assist SMEs in all aspects including the development of small and medium-sized projects.
To enhance the competitiveness of the telecommunications industry and the efficiency of product services, YB Tuan Lim said that the government is expected to complete half of the target of "double speed, half price" as soon as this year end.
YB Tuan Lim believed that by entering the 'Internet+' and the Industry 4.0 era, we will not be confined to the 'Malaysia Manufacturing' or 'Made in China' production model. It will be 'Made in Internet‘ that transcends national and regional manufacturing and production patterns. In order to keep up with the wave of the new industrial revolution, Malaysia certainly needs more competitive speed and the telecommunications operators must drive this movement.
In terms of people's livelihood, YB Tuan Lim reiterated that the benefits of the Sales and Services Tax (SST) to be implemented in September.
“SST is a single tax system that only targets specific finished product manufacturers and specific service industries and will not increase inflation. Last year, the government’s GST revenue was RM 44 billion, but the cost was passed to the people and burdened them. This year, Even if the SST is implemented, the government estimates that only half of the income will be obtained, and the other half (about RM22 billion) will be returned to the market and the people. Of course, we will use different welfare systems to confirm that the individuals or families under the poverty line really benefit,” YB Tuan Lim said.