KUALA LUMPUR, Sept 1 — The Entrepreneur Development and Cooperatives Ministry (MEDAC) via SME Corp Malaysia will provide stamp duty exemption for small and medium enterprises (SMEs) on any instruments executed for merger and acquisition (M&A) activities aimed at enhancing their capacity.
This initiative, implemented with the cooperation of the Inland Revenue Board (LHDN) and the Securities Commission Malaysia (SC), also aims to mitigate the impact of the COVID-19 outbreak on the SMEs by enhancing their access to funding and valuable assets.
“The stamp duty exemption on M&A instruments covers the costs of the contract or agreement for the sale or lease of property (including land, buildings, machines and equipment); transfer and memorandum of understanding; loan or financing agreement; and first lease agreement.
“This incentive is open only to SMEs that implement M&A activities between July 1, 2020 and June 30, 2021, and is only for fully Malaysian-owned SMES in all sectors including manufacturing, services, agriculture as well as mining and quarrying,” it said in a statement today.
It said the initiative was created to help local companies build their capacity and encourage the merger of two SME entities or the acquisition of an SME entity by another SME entity in order to become a new and larger business entity.
Announced by Prime Minister Tan Sri Muhyiddin Mohd Yassin under the National Economic Reciovery Plan (PENJANA), it aims to expand the capabilities of local companies and support SMEs affected by the current challenging landscape.
It also aims to give opportunities to new business entities to gain knowledge and skills as well as qualified staff, besides reducing costs.
Application forms can be downloaded via SME Corp. Malaysia’s website at www.smecorp.gov.my, and should be submitted by July 31, 2021.
For enquiries, call the MEDAC hotline at 1-300-88-1020 or SME Corp. Malaysia at 1-300-30-6000 or email firstname.lastname@example.org.