6 takeaways from Budget 2022 that Malaysia's biz and marketing sectors should know

The Malaysian government has allocated RM332.1 billion for Budget 2022, which was the highest value compared to the previous budgets. Themed "Keluarga Malaysia, Makmur Sejahtera", finance minister Tengku Zafrul Aziz said it was evident that 2021 proved more challenging. Initially anticipating that 2021 would be a year of recovery, Tengku Zafrul said the recovery was delayed due to the worsening of the pandemic since the tabling of Budget 2021. 

While this year has certainly proved to be challenging, Malaysia has commited to pushing forward and hopes that Budget 2022 would shine the end of the pandemic crisis. Moving forward, these are four key takeaways companies should anticipate for 2022. 

1. Recovery for the tourism, creative and retail industry 

The government wants to ensure that the tourism, creative, retail, agriculture and commodity industries are able to resume operations at maximum capacity. On the tourism front, it will continue the Wage Subsidy Programme initiative specifically for tour operators that have experienced a decline in revenue of at least 30%.

With an allocation of RM600 million, this initiative is said to benefit more than 26,000 employers and 330,000 employees. The government will also intensify efforts to revitalise the international health tourism industry at an immediate pace to strengthen Malaysia's position as a preferred health tourism destination with an allocation of RM20 million to the Malaysia Healthcare Travel Council. 

Meanwhile, on the creative front, agencies such as FINAS, CENDANA and MyCreative Ventures will intensify various initiatives to revive the industry. A total of RM188 million has been allocated to continue initiatives such as the Digital Content Fund, Digital Multimedia Content project, Film Incentive, Perkasa Modal Insan programme, and SOCSO protection for artists. In addition, the government will ensure the programme Riuh Keluarga Malaysia is successful next year through an investment loan matching fund amounting to RM20 million. The move is expected to provide 5,000 new job opportunities. 

For the retail scene, special focus will be given to help local social enterprises, halal, handicraft, agricultural and entrepreneurial enterprises to switch to digital services in 2022. Following the success of the Shop Malaysia Online and Go-eCommerce Onboarding campaigns which have benefited more than 500 thousand local entrepreneurs, the government will continue this programme with an allocation of RM250 million. Micro SME entrepreneurs are also eligible to receive benefits of up to RM2,000 for eCommerce implementation activities, training in marketing and digital payments.

To boost the production and purchase of local products, the government is committed to implementing initiatives to support local handicrafts and natural resources through the Buy Made in Malaysia Campaign, Malaysian Sales programme and Khazanah Alam Industry Direct Selling programme with an allocation of RM33 million. Allocating 33 million, the government is committed to boosting the production and purchase of local products. This fund would be used to support local handicrafts and natural resources through the Buy Made in Malaysia Campaign, Malaysian Sales programme, and Khazanah Alam Industry Direct Selling programme. 

2. Helping halal MSMEs grow

The government will create a special fund for strategic investments of up to RM2 billion to attract strategic foreign investments by multinational companies, especially those that complement industry value chains and drive knowledge-based jobs creation as well as development opportunities for local SMEs.

As part of this, RM25 million is allocated to the Halal Development Corporation to execute various programmes including the MSME Halal Product Digital Branding and the MSME Halal Product Marketability programme. This is in a bid to help develop more halal MSMEs that are able to compete internationally.

3. Doubling down on Industrial Revolution 4.0

An amount of RM30 million will be prepared to implement the Innovation Hub: Industrial Revolution 4.0 under Technology Park Malaysia as an innovation ecosystem one-stop centre with the development of new emerging technology clusters such as drones, robotics and autonomous vehicles. This hub is expected to benefit and provide exposure to 10,000 potential entrepreneurs.

To encourage more success stories such as Piktochart, Cradle Fund as the startup ecosystem coordinating agency will be allocated RM20 million to intensify recovery efforts and build the resilience of the startup economy. In line with the aim of the Malaysia Digital Economy Blueprint, the MyStartup strategy will be executed in phases to benefit over 2,500 companies and create 5,000 job opportunities.

4. Expanding 5G services and targeting digital nomads

5G services will be expanded to 36% of high-density areas next year, including in major cities in Johor, Selangor, Penang, Sabah and Sarawak. To increase digital adoption among SMEs, the government will enhance the SME Digitisation Grant Scheme initiative. For 2022, the total funding for this scheme has been increased to RM200 million with RM50 million dedicated towards Bumiputera microentrepreneurs in rural areas.

At the same time, the government is also introducing the Malaysia Digital Nomad programme to create a digital nomad community and ecosystem in Malaysia by using the tourism sector as a catalyst. The government recognises that this group has the potential to contribute to the national economy, especially as tourists.

5. Generating and sustaining jobs 

The government plans to allocate RM4.8 billion under the Jamin Kerja Keluarga Malaysia (JaminKerja) initiative which is said to guarantee 600,000 job opportunities. This budget also targets 220,000 trainees to undergo various upskilling and reskilling programmes with a total allocation of RM1.1 billion. Among the programmes that will be implemented are the place and train programme, which is a training programme with guaranteed placement into employment. In addition, the upskilling programme in collaboration with industries will be enhanced by prioritising digital skills such as the GLOW programme under MDEC.

6. Empowering female entrepreneurs

With many companies now adopting a strict diversity, equity and inclusion practice, it is evident that women are now taken more seriously in the workforce as compared to before. A total of RM230 million in funding will be provided to support women entrepreneurs, particularly those affected by COVID-19 as well as to expand their business activities, through, among others, the DANANITA programme under MARA and TEKUNITA under TEKUN. Additionally, the government would be reallocating RM5 million to the Women Leadership Foundation to boost women's participation in the economic sector. 

The Government will also implement the MyKasih Capital programme to enable women to earn an income from home. Through this programme, assistance in the form of basic business capital will be provided. 

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Photo Courtesy: 123RF

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