KUALA LUMPUR, Feb 21 — The Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) has urged the government to pay particular attention to tackling cost related bottlenecks in the business regulatory environment in the budget to be tabled this Friday.

In a statement, ACCCIM said it is looking forward to a responsible and pro-business budget and reduce the cost of doing business especially for small and medium enterprises (SMEs).

"ACCCIM is hoping for lower income tax rate at 15 per cent and higher preferential threshold (RM1 million) to help SMEs ease their cost of doing business in view that it would help SMEs to be more competitive and have leeway to reinvest from the tax savings,” it said.

ACCCIM also wishes for higher capital expenditure threshold to encourage automation in all economic sectors.

"Standardise and increase the qualifying expenditure for Accelerated Capital Allowance (ACA) for both Category 1 (high labour intensive industries) and Category 2 industries to RM10 million from RM4 million and RM2 million respectively,” it said.

The association also would like the government to review the electricity surcharge of 20 sen/kWj for the period of Jan 1 to June 30, 2023 on the medium voltage (MV) and high voltage (HV) users, which have impacted SMEs. — Bernama