LHDN requirement excludes many Bumiputera SMEs from aid, says NGO

(FMT) – An NGO voiced concern today that the requirement for small and medium-sized enterprises (SMEs) to register with the Inland Revenue Board (LHDN) to qualify for government aid will see many Bumiputera businesses left out.

Majlis Perundingan Pertubuhan Islam Malaysia (Mapim) president Mohd Azmi Abdul Hamid said many Bumiputera SMEs have yet to register with LHDN as their revenue is below RM5,000 a month.

This includes thousands of SMEs under various federal and state government agencies.

Azmi said the group was concerned that Putrajaya’s RM10 billion SME stimulus would not benefit the majority of Bumiputera SMEs, particularly Malay entrepreneurs.

“They will suffer huge losses as they are not allowed to operate during the movement control order (MCO) and there is no aid for them.”

Azmi said all Bumiputera SMEs under federal and state agencies should be given a minimum incentive of RM3,000 a month, not just those registered with LHDN.

“We urge the government not to sideline Malay Bumiputera SMEs that have the potential to produce quality products.”

He said the government should recognise Bumiputera SME entrepreneurs who have registered with federal or state government agencies so that they qualify for aid under the SME stimulus.

This, he said, includes exempting them from the requirement to be registered with LHDN.

He also urged the various agencies overseeing Bumiputera SMEs to introduce special aid for the entrepreneurs under them.

“The government also needs to develop a scheme to aid and facilitate Bumiputera SMEs to obtain halal certification and qualify for aid from the Malaysia External Trade Development Corporation,” he said.