With the announcement of Budget 2017, everyone seems to have his/her eyes fixed on the new development and improvement that can be brought about by the much anticipated annual budget announcement.
It’s delighted to see that this year’s budget places a great emphasis on startups and SME, coupled with various incentives to help the Internet Industry in the country. This, is indeed a great move as in today’s digital world, business and the Internet are no longer separable.
The World’s First Digital Free Trade Zone & Digital Hub
In Budget 2017, announcement was made on the introduction of the world’s first digital free trade zone and digital hub, which aim to boost SME competitiveness in the global arena.
Check out the tax incentives and other major initiatives aim to spur the growth of Malaysian Internet Business, all well presented in our infographic as below!
a) Direct Impact on Internet Business
Lifestyle Relief to Include Smartphone & Internet
Lifestyle relief is expanded to include Purchase of smartphones/tablets & Internet subscriptions (limited to RM2500).
Computer Loan Facility
Computer loan facility extended to include the purchase of smartphones. Public servants are entitled to this once every 3 years (limited to RM5,000).
Broadband Speed to Double
Starting from January 2017, fixed line broadband will be priced at RM149 for 10mbps. Within 2 years, speed will be doubled at half the price.
Wider Internet Coverage
Internet coverage around the country will be expanded, and speed be upgraded up to 20mbps.
More Internet Access for Students
Student debit cards (with RM250 credit) can now be used to sign up for Internet access plans and buy computer equipment. Over one million students are set to benefit from it.
Initiatives for a Digital Economy
Initiatives: eRezeki & eUsahawan Programme. eRezeki is set to encourage financial independence among B40 households while eUsahawan to provide upskilling through the curriculum of Technical and Vocational Education and Training (TVET) institutions).
b) Indirect Impact on Internet Business
Startup and SME Promotion Year
2017 will be “Startup and SME Promotion Year”.
Working Capital Guarantee Scheme Fund
A total of RM200 million has been allocated to Working Capital Guarantee Scheme Fund to assist startups.
SME Master Plan
RM75 million to be offered for programmes that run under the SME Master Plan. Syarikat Jaminan Pembiayaan Perniagaan to be extended until 2025.
RM100 Million Allocation for SME Bank
RM100 million allocation for SME bank to increase opportunities for Bumiputera entrepreneurs.