Lim Guan Eng urges Zahid to prove MSME sincerity with loan moratorium and fair EPF rules

PETALING JAYA, July 10 — DAP’s Lim Guan Eng has questioned whether Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s recent announcements on easing burdens faced by micro, small and medium enterprises (MSMEs) reflect genuine concern or political expediency.

Lim, the Bagan MP, said Zahid’s pledge to review the e invoicing system and the mandatory 2 per cent Employees Provident Fund (EPF) contribution for foreign workers was welcome, but overdue.

“These issues had been raised repeatedly in and outside Parliament for nearly two years without any input from Zahid,” he said in a statement today.

Lim urged the government to raise the annual turnover threshold for e invoicing to RM5 million to ease compliance costs for MSMEs. He also questioned the necessity of requiring employers and foreign workers to contribute to EPF, noting that Singapore had abolished mandatory contributions without being penalised by the United Nations and the International Labour Organisation (ILO).

He argued that contributions should apply only to new hires, not existing workers whose contracts did not stipulate such terms, warning that employers were often forced to absorb the cost to avoid disputes.

Lim added that Zahid should also press Cabinet to consider a one year interest moratorium on existing MSME loans and provide interest free financing for the first RM50,000.

“If Zahid succeeds, he would be seen as a genuine saviour of MSMEs — something no minister has achieved so far — and not merely taking advantage of the current timing to gain support,” Lim said.