Kuala lumpur: The RM20 million allocation in the 2026 Budget for increasing the sites and commercial spaces for small traders of Tamu Desa (Village Markets) in Sabah and Sarawak can help local entrepreneurs realize their aspirations for better business facilities. Minister of Entrepreneur Development and Cooperatives (KUSKOP) Datuk Ewon Benedick stated that the allocation reflects the government's commitment to fulfilling the requests of Tamu Desa entrepreneurs in both states to upgrade their market sites and commercial spaces with more complete basic amenities.
According to BERNAMA News Agency, Ewon highlighted that apart from the RM20 million, Sabah and Sarawak also received significant attention in this budget. Specifically, Sabah received an allocation of RM6.9 billion, marking the highest in the nation's budget history to date. This allocation signifies the government's dedication to supporting regional development and addressing the needs of local entrepreneurs.
Additionally, Ewon mentioned the government's proposal to provide an additional 50 percent tax deduction to Micro, Small, and Medium Enterprises (MSMEs) for training cost expenses related to Artificial Intelligence (AI) and security. This initiative aims to act as a catalyst for the adoption of AI among MSME entrepreneurs, fostering innovation and technological advancement within the sector.
Ewon expressed hope that this tax deduction incentive would enhance innovation and technology among MSMEs. He emphasized that this budget reflects fiscal sustainability following the fiscal reforms undertaken, including the subsidy reforms implemented by the government for the first time. He acknowledged the extensive support provided for the MSME sector in the budget, representing not only the ministry but also the broader MSME community, hawkers and small traders, cooperatives, and franchise entrepreneurs.
The 2026 Budget, themed 'People's Budget,' allocates RM470 billion in public expenditure, comprising RM338.2 billion for operating expenditure and RM81 billion for development. This is in addition to investments by government-linked investment companies (RM30 billion), public-private partnerships (RM10 billion), and Federal Statutory Bodies and Minister of Finance (Incorporated) Companies (RM10.8 billion).