The Small and Medium Enterprises Association of Malaysia (Samenta) said this was the findings of its various surveys and engagements with SMEs since early this year.

“We are concerned that the government may be lulled into believing that our SMEs are doing well because of the strong economic rebound, moderation of inflation, and strengthening of the ringgit.

“Contrary to that belief, many SMEs are badly impacted by the additional cost of doing business and are mulling a steep increase in selling prices,” Samenta president William Ng said in a statement today.

He said the margin compression challenge is further exacerbated by increased compliance costs posed by the upcoming e-invoicing mandate and adherence to the environmental, social and governance standards and reporting.

“At the same time, various government agencies and local authorities are increasing their fees for SMEs by 15%-250%.

“Many SMEs are desperate for help, but do not know where or how to find those help,” he added.

Ng said he hopes that the government is mindful of these issues and will consider refraining from introducing any new or additional taxes in Budget 2025 that could further impact the competitiveness of SMEs.

“Instead, the focus should be on helping our SMEs scale, manage their costs, and tap into the various opportunities presented by the energy transition, climate change, aging population, artificial intelligence, and the shifting global economic order,” he added.

In the statement, the association also reiterated its commitment to supporting the Madani economy, and hopes that the concerns of SMEs will be addressed.