by DASHVEENJIT KAUR/ pic by MUHD AMIN NAHARUL
THE government is providing a stamp duty exemption to Malaysian-owned small and medium enterprises (SMEs) for merger and acquisition (M&A) activities, aimed to build the capacity of local companies and support SMEs affected in the current landscape.
The incentive is an effort by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) through SME Corp Malaysia, in collaboration with the Inland Revenue Board of Malaysia and the Companies Commission of Malaysia.
Catered to Malaysian-owned SMEs in all sectors including manufacturing, services, agriculture, as well as mining and quarrying, MEDAC Minister Datuk Seri Wan Junaidi Tuanku Jaafar said the incentive is created to help build the capacity of local companies and encourage mergers among SMEs to form new companies or the acquisition of SMEs by other SMEs to become bigger business entities, both by way of legal instruments and contracts.
The stamp duty exemption on instruments for M&A activities includes the cost of Contracts or Agreements for the sale or lease of properties (including land, buildings, machinery and equipment); Instruments of Transfer and Memorandum of Understanding; Loan or Financing Agreement; and the First Lease Agreement.
“Application for this incentive is eligible for SMEs that perform M&A activities in the period between July 1, 2020, until June 30, 2021, only,” Wan Junaidi said.
He said the government sees this M&A effort as helping to strengthen SME capacity and prevent the hollowing out of companies as a result of the Covid-19 outbreak, by enhancing access to funds and valuable assets for new developments.
“In addition, this activity also provides an opportunity for new business entities to gain additional knowledge, skills and quality staff, as well as to lower costs.”
Application forms can be downloaded via SME Corp’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 at 1-300-30-6000 or email [email protected]