SME Corp takes the lead in GST education

Publication: NST

Date of publication: Apr 7, 2012

Section heading: Business Times

Page number: 016

Byline / Author: By Bilqis Bahari

KUALA LUMPUR: SME Corp Malaysia has engaged the Royal Malaysian Customs and Ministry of Finance to educate the small- and medium-sized enterprises (SMEs) on the goods and services tax (GST) before it is implemented by the government.

SME Corp chief executive officer Datuk Hafsah Hashim said SMEs will be educated on financial management and how to be more organised with regard to their accounts.

She added that SME Corp is aware that GST will be introduced but does not know the implementation date.

"I would say it is a matter of time. I don't know when but the most important thing is our SMEs are aware that it is coming and they are ready to take it on board," Hafsah said.

She added that the implementation will ensure that all companies including SMEs will put in place a very good financial management system and it should be looked at as an investment.

According to media reports, GST or also known as value-added tax (VAT) will be an effective tool to reduce or even settle the country's deficit to remain competitive.

It was previously scheduled to be implemented by the government last year to replace the sales and services tax but has been put on hold.

Meanwhile, SME Corp launched its prestigious annual award programme, Enterprise 50 (E50), yesterday.

This year, participation for the programme is by invitation only.

SMEs with an SME Competitiveness Rating for Enhancement or SCORE rating of four stars and above will receive an exclusive invitation by SME Corp to join the programme.

SME Corp chairman Datuk Mohamed Al Amin Abdul Majid said the slight changes are to indirectly encourage SMEs to move up in their capability, efficiency and management.

Meanwhile, Hafsah said there are currently more than 400 SMEs with four-star ratings and these companies will be invited to participate.

"From this pool of 400 companies, we are looking for the top 50 not necessarily based on the SCORE rating but very much looking into how the companies position themselves for the future and bring themselves from one level to the next level," she said.

Selected SMEs are encouraged to take advantage of the opportunity and confirm their acceptance before April 20.

The main objective of E50 is to recognise 50 Malaysian companies with high potential that are well-positioned for the future and promote greater pursuit of excellence.