6 takeaways from Budget 2022 that Malaysia’s business and marketing sectors should know
The Malaysian government allocated 332.1 billion ringgit for the 2022 budget, which was the highest value compared to previous budgets. On the topic “Keluarga Malaysia, Makmur Sejahtera”, Finance Minister Tengku Zafrul Aziz said it was evident that 2021 was proving to be more difficult. Initially anticipating that 2021 would be a year of recovery, Tengku Zafrul said the recovery had been delayed due to the worsening pandemic since the 2021 budget was tabled.
While this year has certainly turned out to be difficult, Malaysia is committed to moving forward and hopes that the 2022 budget will highlight the end of the pandemic crisis. Going forward, these are four key points companies should anticipate for 2022.
1. Takeover of the tourism, creative and retail industry
The government wants to ensure that the tourism, creative, retail, agricultural and commodity industries can resume operations at their maximum capacity. In terms of tourism, it will continue the Wage Subsidy Program initiative specifically for tour operators who have experienced a drop in their income of at least 30%.
With an allocation of RM 600 million, this initiative would benefit more than 26,000 employers and 330,000 employees. The government will also step up efforts to revitalize the international health tourism industry at an immediate pace in order to strengthen Malaysia’s position as a preferred health tourism destination with an allocation of Ringgit 20 million to the Malaysia Healthcare Travel Council. .
Meanwhile, on the creative front, agencies such as FINAS, CENDANA and MyCreative Ventures will step up various initiatives to revive the industry. A total of RM 188 million has been allocated to pursue initiatives such as the Digital Content Fund, Digital Multimedia Content Project, Film Incentive, Perkasa Modal Insan program and SOCSO protection for artists. In addition, the government will ensure that the program Riuh Keluarga Malaysia succeeds next year with a matching fund for investment loans amounting to RM 20 million. The move is expected to provide 5,000 new job opportunities.
For the retail scene, special attention will be given to helping local social enterprises, halal, craft, agricultural and entrepreneurial businesses to switch to digital services in 2022. Following the success of Shop’s integration campaigns Malaysia Online and Go-eCommerce which have benefited more than 500,000 local entrepreneurs, the government will continue this program with an allocation of RM250 million. Micro-SME entrepreneurs are also eligible to receive benefits of up to RM2,000 for e-commerce implementation activities, marketing training, and digital payments.
To stimulate the production and purchase of local products, the government is committed to implementing initiatives to support local crafts and natural resources through the Buy Made in Malaysia campaign, the Malaysian Sales program and the Khazanah Alam Industry Direct Selling with an allocation of 33 million ringgit. Allocating 33 million euros, the government has pledged to stimulate the production and purchase of local products. This fund would be used to support local crafts and natural resources through the Buy Made in Malaysia campaign, Malaysia sales program and Khazanah Alam industry direct sales program.
2. Help halal MSMEs to develop
The government will create a special fund for strategic investments of up to Ringgit 2 billion to attract strategic foreign investment from multinational enterprises, especially those that complement industry value chains and stimulate job creation based on knowledge as well as development opportunities for local SMEs.
Within this framework, 25 million ringgit is allocated to the Halal Development Corporation to execute various programs, in particular the MSME Halal Product Digital Branding program and the MSME Halal Product Marketability program. This is to help develop more halal MSMEs capable of being competitive internationally.
3. Double the industrial revolution 4.0
RM 30 million will be prepared to implement the Innovation Hub: Industrial Revolution 4.0 under Technology Park Malaysia as a unique center of the innovation ecosystem with the development of new emerging technology clusters such as drones, robotics and autonomous vehicles. This hub should benefit and offer exposure to 10,000 potential entrepreneurs.
To encourage other success stories such as Piktochart, Cradle Fund, as the umbrella agency of the startup ecosystem, will be allocated RM20 million to scale up recovery efforts and build the resilience of the startup economy. . In line with the goal of the Malaysia Digital Economy Blueprint, the MyStartup strategy will be phased in to benefit more than 2,500 businesses and create 5,000 job opportunities.
4. Extend 5G services and target digital nomads
5G services will be expanded to 36% of high-density areas next year, including in the major cities of Johor, Selangor, Penang, Sabah and Sarawak. To increase digital adoption among SMEs, the government will strengthen the SME Digitization Subsidy Program initiative. For 2022, the total funding for this program has been increased to Ringgit 200 million, of which Ringgit 50 million is dedicated to Bumiputera microentrepreneurs in rural areas.
At the same time, the government is also introducing the Malaysia Digital Nomad program to create a community and ecosystem of digital nomads in Malaysia using the tourism sector as a catalyst. The government recognizes that this group has the potential to contribute to the national economy, especially as tourists.
5. Create and maintain jobs
The government plans to allocate 4.8 billion ringgit under the Jamin Kerja Keluarga Malaysia (JaminKerja) initiative that would guarantee 600,000 job opportunities. This budget also targets 220,000 trainees to follow various development and retraining programs with a total allocation of 1.1 billion ringgit. Among the programs to be implemented is the Place and Train program, which is a training program with guaranteed job placement. In addition, the development program in collaboration with industries will be enhanced by prioritizing digital skills such as MDEC’s GLOW program.
6. Empower women entrepreneurs
As many companies now adopt a strict diversity, equity and inclusion practice, it is evident that women are now taken more seriously in the workforce than ever before. Total funding of RM 230 million will be provided to support women entrepreneurs, especially those affected by COVID-19, as well as to expand their business activities, through, among others, the DANANITA program under MARA and TEKUNITA under TEKUN. In addition, the government would reallocate RM 5 million to the Women Leadership Foundation to boost women’s participation in the economic sector.
The government will also implement the Capital MyKasih program to enable women to earn an income at home. Through this program, assistance in the form of basic business capital will be provided.
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