09/12/2025
Anwar, Why Treat Foreign Investors Like Kings and Local SMEs Like Criminals?
Every day we hear the same headlines:
“Malaysia secures billions in investment!”
You fly around the world, red carpets are rolled out, tax holidays, pioneer status, special zones — all for foreign investors.
We support that — if it truly benefits the country.
When foreign investors get the red-carpet treatment, why are your own local children — Malaysia’s SMEs and MSMEs — treated like the enemy?
In 2024, SMEs contributed RM652.4 billion to GDP (39.5% of total GDP), grew 5.8% — faster than the national economy — and employ millions of Malaysians.
Compare that to what the government painfully squeezes out:
New SST, new taxes → extra RM5 billion a year
Subsidy cuts → maximum RM10 billion saved a year
Even PETRONAS contributes only RM20 billion a year
SMEs give RM652.4 billion every single year — more than 30 times what you fight so hard to collect.
And what do we get in return?
8% SST on commercial rent every month — paid upfront whether we make profit or not.
E-Invoicing: rules changed 4 times in 18 months. Thousands spent on software, training, accountants — then suddenly “below RM1 million exempt”. Money sunk, no refund, no apology.
Tax overpayment refunds? Beg for 3–5 years. Pay late one day → 10% + 5% penalty. LHDN late by years → zero interest. That cash could pay salaries or save jobs.
Electricity tariffs for commercial users up 15–20%, commercial gas prices up again, assessment rates up, SOCSO contributions up, stamp duties, insurance, service charges — everything rises except our profit margins.
Digital service tax, sugar tax, sugary drink excise, tourism sustainability fee, departure levy changes every year, and now even forgetting to declare a job vacancy before hiring a local can get you fined.
Foreign worker policies that flip-flop every few months: higher levies, mandatory EPF for foreign workers, stamping fees, compulsory reporting — one day late and compounds of thousands of ringgit hit immediately.
Let’s put real numbers to the pain so you understand what a small SME faces today:
Imagine a business with just 5 workers:
Minimum wage increase → extra RM200–250 per worker = +RM1,000–1,250/month
Foreign worker levy + stamping + mandatory EPF → easily another RM8,000–12,000 per worker per cycle
One day late reporting a worker quit → RM10,000–50,000 compound
Electricity bill up 15–20% → +RM1,000–3,000/month
8% SST on rental → another RM2,000–5,000/month (paid even when losing money)
E-Invoice system setup & monthly maintenance → RM5,000–20,000 sunk cost + ongoing fees
All the knock-on effects: transport costs up, raw material costs up because everyone else is also squeezed
That is an extra RM10,000–30,000 a month for a tiny company — before a single new regulation lands next week.
We are drowning in compliance while trying to stay alive.
The role of a “boss” today is no longer managing the business.
We have become full-time accountants, compliance officers, HR specialists, and beggars at LHDN counters — just to keep the doors open and our workers paid.
Malaysia’s SMEs are the backbone that feeds families and holds this country together 365 days a year.
Foreign investor: “Malaysia, I love your incentives!”
Anwar: “Take 15 years tax free, sayang!”
Local SME: “Abang, saya pun sayang Malaysia ni…”
Anwar: “Diam. Bayar SST sewa dulu baru boleh sayang.”
Anwar: “Kita mahu jadi high-income nation!”
SME: “Bagus tu bang. Tapi high-income tu untuk Google, Microsoft, sama anak YAB je ke? Kami yang lain high blood pressure nation la ni.”
Anwar roll out red carpet untuk pelabur asing.
Kami SME kena roll dalam karpet sampai sesak nafas.
