Budget 2021 seen as boon to e-commerce startups, SMEs

KUALA LUMPUR (Nov 7): Budget 2021 has been seen as bringing hope to small and medium enterprises (SMEs) and e-commerce startups.

In a statement, homegrown apparel brand Oxwhite founder CK Chang said the Budget is quite a comprehensive plan as it will help drive Malaysians further in the adoption of e-commerce through connectivity enhancement such as Prihatin Connectivity Plan (Program Jalinan Prihatin) and National Digital Connectivity (JENDELA).

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He said the Budget also helps homegrown brands such as Oxwhite cushion the impact of the global pandemic by incentivising Malaysians to support local brands online through the RM150 million allocation for Shop Malaysia Online campaign.

“On top of that, the RM35 million allocated for the promotion of local products and services would be beneficial for the local e-commerce players to remain competitive as retail patterns shift online,” he said.

Meanwhile, employee medical benefits platform Mednefits Malaysia said startups and SMEs have always punched above their weight in Malaysia.

Mednefits chief executive officer Chris Teo said that in 2019, they contributed close to 40% to Malaysia’s gross domestic product.

“It is therefore heartening to hear the Malaysian government allocating up to RM150 million to help startups and SMEs accelerate the adoption of digital technologies.

“All businesses — big or small — should seize the opportunity to invest in technology, to help simplify and automate routine administrative processes, so that they are better placed to capture growth opportunities when the economy improves,” said Teo.

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