KUALA LUMPUR: The 2025 Budget has effectively promoted the growth of local small and medium enterprises (SMEs), while also acknowledging the contributions of woman entrepreneurs to the nation.
SME Association of Malaysia president Chin Chee Seong said besides continuing to focus on providing loan facilities and guarantees, it also includes financing assistance for women entrepreneurs, encouraging their return to the workforce.
Chin said the budget featured several measures to support the growth of SMEs, demonstrating the government's continued commitment to assist and drive the development of local businesses.
"The government has announced loan facilities and business loan guarantees amounting to RM40 billion in the upcoming year's budget.
"This includes RM3.2 billion for micro-enterprises, RM20 billion in financing guarantees, and RM3.8 billion in SME loan funds to support digitalisation and automation transformation," Chin said in a statement.
The government has also introduced several policies aimed at women, such as an additional 50 per cent tax exemptions for employers hiring women returning to the workforce, he added.
Its vice president cum chairlady of the women entrepreneurs bureau Miccele Siow said additional grants and loan programmes tailored for women could encourage more of them to enter the business world.
Siow said the government can offer low-interest loans at rates as low as 3.5 per cent and simplify application processes to lower the barriers, especially for startups led by women.
"Streamlined processes could include reducing required documents, speeding up approval times, and minimising cumbersome collateral requirements - such that only basic documents like financial statements for one to two years are needed.
"Extending loan tenures to eight-nine years, providing more entrepreneurship training and tax relief measures could also effectively support women entrepreneurs in establishing or expanding their businesses," she added.
Siow said providing women with specialised skills training and career development programs, especially in high-demand sectors like technology and finance, could pave a better future for female entrepreneurs.
"We are grateful for the 'Women Leadership Apprenticeship Programme' promoted by the Ministry of Women, Family and Community Development.
"Appropriate training can help women entrepreneurs better prepare for the fast-paced changes in today's world.
"Perhaps more professional training could be offered to women through agencies such as the Human Resource Development Corporation (HRD Corp) and Talent Corp," she said.
Siow added that while some women become full-time homemakers after marriage to care for their children and families, with proper support, they could still start home-based businesses and achieve their own success.
"Although they are caring for their families, they can also run businesses online.
"Therefore, I suggest that the government offer low-interest loans specifically for full-time homemakers, with a maximum loan amount of RM30,000 and a no-interest incentive for the first year," she added.
This would give them a buffer period to stabilise their income, which would also help boost the country's economic development.
"After implementing appropriate training, tax exemptions and more low-interest loans, the government could consider offering additional rewards to women entrepreneurs," she added.