FMM seeks wider SME tax bands and smoother support for growing manufacturers
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Manufacturers’ calls for wider SME tax concessions are proposals for the government to consider—not new tax relief that firms can already claim.
In an Oct 25 statement reported by The Borneo Post, the Federation of Malaysian Manufacturing asked for a further review of SME corporate tax rates and wider income bands qualifying for preferential treatment. It also sought the removal of the RM2.5 million paid-up capital criterion for SME tax treatment.
For growing manufacturers, including those in Sarawak, the issue is whether increasing capital or expanding operations causes support to fall away before a company can comfortably fund its next stage. FMM wants a revised manufacturing SME definition covering turnover of up to RM100 million or up to 300 employees, paired with graduated support beyond SME status.
The federation also reiterated a proposed RM1.5 billion smart manufacturing package for 2027–2030: RM500 million for automation, RM750 million for digitalisation and RM250 million for artificial intelligence adoption. These figures describe its requested package, not an approved funding allocation.
The distinction for business planning is important: a proposed wider definition or tax band does not itself change eligibility. FMM said it would continue engaging the government on the National Budget 2027 initiatives.
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