Budget 2024 will enhance the nation’s sustainability and resilience, says Malaysian institute of accountants

KUALA LUMPUR: The Malaysian Institute of Accountants (MIA) welcomes the Budget 2024 which focuses on strengthening the economy, sustainability & ESG, capacity and competency building, and strategic tax measures.

‘’Accountancy talent is critical to the business and economy. We are pleased that certain measures support the development and on-going implementation of the MIA’s Competency Framework (CFM), said Datuk Bazlan Osman, President of the MIA. The MIA CFM is a set of principles that defines the baseline competencies and skill sets required to become accountancy professionals who are able to demonstrate their proficiency at different levels including Accounting Technicians.” He then referred to:

• The allocation of RM6.8 billion for TVET education which is essential to train and produce more young graduates who can perform the role of Accounting Technicians in support of organisations and Shared Service Centres.

• The extension of tax rebate up to RM2,000 for self-development and upskilling to 2026, which is a good move in encouraging the young graduates and accountancy professionals to continue upskilling on specific courses as part of personal development.

• The introduction of the Long-Term Social Visit pass for international students who have completed their education bodes well for international accounting graduates to stay in the country to support the profession. This will contribute towards the net export for accounting services as well as promote the country as the accounting education and training hub.

• Allocation of RM20 million to stimulate research, creativity and innovation in Islamic economics. This will bolster MIA’s aspiration to promote the development and advancement of Islamic Finance talent along with accountancy education and research in Malaysia through the Malaysian Accountancy Research and Education Foundation (MAREF).

MIA commended the Budget’s emphasis on strategic tax measures and efforts to diversify and strengthen collection to support development spending and fiscal health, which includes the increase in the SST rate to 8%, the introduction of new legislation that will subject the luxury goods to a tax rate of 5 to 10% and the imposition of capital gains tax of 10% on shares of unlisted companies, subject to certain exemptions. In addition, MIA welcomes the retention of tax incentives to encourage women to re-enter the workforce which has been extended to 31 December 2027.

MIA strongly advocates for sustainability and ESG for accountancy professionals to embrace the nation’s sustainability agenda which are in line with the following incentives:

• Continuous support for sustainable and responsible investment (SRI) i.e. the extension of tax exemptions to fund management companies that manage SRI funds as well as tax deductions on the cost of issuing SRI sukuk until the year of assessment 2027.

• Encouragement for more companies to participate in the voluntary carbon market i.e. additional tax deduction up to RM300,000 for companies that spend on Measurement, Reporting and Verification (MRV) related to the development of carbon projects. These expenses can be deducted from the sales income of carbon credits traded on the Bursa Carbon Exchange (BCX).

MIA’s Chief Executive Officer Dr Wan Ahmad Rudirman Wan Razak welcomed the Budget’s focus on digital transformation and the allocation of funds/loans for digitalisation. “Digital transformation can streamline financial processes, improve reporting accuracy, and enhance business efficiency, presenting opportunities for the accountancy profession in Malaysia.” Importantly, taxpayers with an annual turnover of more than RM100 million are mandatory to implement e-Invoicing by 1 August 2024. This is in line with the joint feedback by MIA and the other bodies to the LHDNM which will allow sufficient time for smaller businesses (i.e. those with turnover of RM100 million and below) to prepare for e-invoicing.

MIA lauds the Government’s efforts to support the business continuity and resilience of micro, small, and medium enterprises (MSMEs) by providing financial assistance, digitalisation grants and loans. This aims to enhance competitiveness and encourage digitalisation among MSMEs to promote economic growth and inclusivity. These include:

• RM100 million being allocated to provide digitalisation grants of up to RM5,000 for the benefit of over 20,000 MSMEs. These grants can be used to upgrade digital sales, inventory, and accounting systems.

• RM900 million loans under Bank Negara Malaysia to encourage SMEs to enhance business productivity through automation and digitalisation.

Dr Wan Ahmad Rudirman also hailed the Budget’s pertinent focus on strengthening Malaysia’s leadership in Islamic Finance. ‘’The measures will support MIA’s advocacy for Islamic Finance to facilitate the attainment of the UNSDGs and enhance shariah assurance. MIA is currently working on the Shariah Audit Best Practice Guide to promote consistency in industry practices for halal entities and aid members on providing assurance services’’. This supports the Government’s efforts to simplify the halal certification process by reducing the processing days from 51 to 30 days especially for the export of halal products as mentioned in the Budget.

The Institute is strongly advocating for improving public financial management systems in support of good governance and sustainability. To address the fiscal deficit, the Government has passed the Public Finance and Fiscal Responsibility Bill 2023 or the Fiscal Responsibility Act (FRA). This reinforces the Government’s commitment to strengthening governance and ensuring transparency and accountability.

About the Malaysian Institute of Accountants (MIA)

Established under the Accountants Act 1967, MIA is the national accountancy body that regulate, develops, supports and enhances the integrity, status and interests of the profession in Malaysia. MIA accords the Chartered Accountant Malaysia or “C.A. (M)” designation. Working closely alongside businesses, MIA connects its membership to a wide range of information resources, events, professional development and networking opportunities. Presently, there are more than 38,000 members making their strides in businesses across all industries in Malaysia and around the world.

MIA’s international outlook and connections are reflected in its membership of regional and international professional organisations such as the International Federation of Accountants (IFAC) and the ASEAN Federation of Accountants (AFA). For more information on MIA, visit www.mia.org.my.-Bernama