The Malaysia Budget 2021 topic is still becoming one of the hot topics among Malaysia. “No one is left behind”. Our Prime Minister’s statement greatly comforted us as Covid-19 pandemic continuously ravaging its third wave throughout the country, amidst the world. It enlightened how interconnected we are in this global village. Both matters applied, public health and commerce, as well as safety in governance and investment-friendly environment.
Together we expect all the initiatives will help in shaping Malaysia’s pandemic exit plan. In reality, our country is mostly still in shades of analog, whereas the likes of our neighbouring countries such as Indonesia, Singapore and Vietnam are embracing and culturing a more advanced digital world.
Fortunately, in Budget 2021 there are clear ways stated on how to build the nation further as well as the exit strategy to combat the pandemic should next year 2021 be of no different. Our finance minister has suggestively outlined how the government is willing to fund adequately the covid-19 vaccine for the citizen, especially the frontliners, Additionally, we still have enough allocations for the backbone of our economy, the small and medium entrepreneurs, the SMEs.
One of the initiatives, SME Business Continuity provides Digitalization Grand Scheme for SMEs and start up companies. Newbies are gladly welcomed to grab these given opportunities (RM150 million provided). Also, RM4.6 billion financing and capacity building programmes for all these entrepreneurs are laid in front as well as credit financing through financial institutions. Existing as well as local start up companies should grab these opportunities to increase and continue financial stability in this global economic crisis.
Start up companies which are associated with businesses that are typically technology oriented and has high growth potential should be less pressured to develop a product or service for which they believe there is demand, as RM150 million is generously allocated for training/ initiatives provided under Janakerja reskilling and upskilling which will further assist these SMEs in training programmes in collaboration with private sector employed. These are provided with RM100 million allocation as well as rm3000 vouchers for fresh graduates to enlist in professional certificate course at public or private universities.
As it is now, business opportunities have been widening its scope to cover a lot more than before, however the government still consider to provide better in giving out RM300 million JanaNiaga Platform as a National Supply Chain Finance Platform for the SMEs that supply to the government as well as allocating RM2.5 billion small and medium projects for contractors in Class G1-G4; a golden opportunity for whoever’s interested in construction and supply chain business.
Tax relief up to RM1,000 for upskilling is graciously provided to cover expenditures incurred for attending upskilling courses provided by certified bodies. As we can see in our country, most SMEs may not have risk management in their business plans, therefore appropriate training should be emphasized on these qualities so they can produce better output values by doing market analysis with complete and functional industry outlook, target market , current trend and themes. Most business should start with proper funding. Thus, appropriate financial projections are needed by using the initiatives allocated for training. Consequently, further relevant approach in business activities, innovative R&D, optimizing quality productions with practical cost operating can be implemented.
Funding for growth is further enhanced in SME Business Continuity as RM2 billion is provided in Targeted Assistance and Rehabilitation Facility in the forms of loans from banking institutions. However, there are quite a few sighs from these targeted groups on how hard it is to get a start up loan for new businesses. There are ‘unreasonable’ term and conditions to comply before the loan application can be approved. Therefore, government is supposed to intervene in making loose a few threads towards easier and less hustle applications, whereby making all these benefits reach their goal.
Life is a series of calculated risks. Everything that we decide to do has a margin of risk. Either we take some and avoid others; or likewise. The life we live depends on the choices we make, the risks we take, and how lucky or unlucky we have been. Risk is a possibility of lost or injury or just a probability of something bad happening.
Today the biggest risk, admittedly the biggest fear to us as we walk down the street, breathing the air, is catching the deadly virus, covid-19! How to manage the risk? Well, there are 4 ways to do it; that is, to avoid, to reduce, to share or to transfer them.
One of the most common ways to manage risk is to have takaful or insurance. That is because when we have this protection plan, we transfer the cost of a potential loss to the Takaful Providers or insurance companies. The Takaful provider or Insurance companies invest the fund securely, so it can grow as well as for the benefit of the contributors. As has been proven, health takaful or insurance plan are the most important and ‘favourite’ plans for individuals and families.
Budget 2021 recognizes these values by providing tax relief or RM1,000 for vaccination expenses including covid-19 for self, spouse and family. It is some kind of relief and should be fully taken advantage of. Other tax relief for healthcare are also extended and increased from allocation for personal takaful or Insurance, full medical check-up, medical expenses for self and family, special needs treatment and parental care.
Taking a risk to achieve a goal requires courage to face the fear of uncertainty. No matter the outcome, we grow through the process, secure ourselves by managing the risks and become more confident of achieving future goals. Our future depends on how we plan and strategize our tomorrow starting today. Let us hope all of us will benefitted tremendously and together we can fully utilize all the Budget 2021 initiatives in looking towards a better reformed and healthier country.