This blog was updated on 26 May 2025, for more information connect with our team: https://www.easystore.co/contact 

Key Highlights of Budget 2024

On October 13, 2023, Prime Minister Datuk Seri Anwar Ibrahim unveiled the 2024 Malaysian Budget, marking the second Madani budget and the largest in the nation’s history, with an allocation of RM303 billion (US$64.7 billion).

At the core of this budget is a strategic push to accelerate the digital transformation of small and medium enterprises (SMEs) while promoting automation. 

The government envisions SMEs not just as businesses, but as dynamic entities capable of leveraging digital tools to drive growth, innovation, and sustainability.

For retailers, understanding Budget 2024’s details is crucial. With a strong emphasis on digitalization and automation, businesses must adapt to remain competitive and sustainable. Below are the key points every retailer should be aware of:

1. Business Grants and Initiatives

The government’s commitment to advancing the digital economy is reflected through various support initiatives:

• MSME Financing: RM2.4 billion allocated to micro, small, and medium enterprises (MSMEs) to finance technological upgrades and improvements.

• Digital Grant MADANI: RM100 million set aside to offer digitalization grants of up to RM5,000 to over 20,000 SMEs, helping them upgrade digital sales, inventory, and accounting systems.

• Shop Malaysia Online: RM40 million allocated to encourage small traders, particularly in the food sector, to embrace e-commerce through the Shop Malaysia Online Program.

• Strengthening PEDI: RM25 million dedicated to enhance the role of Digital Economic Centres (PEDI) in every state, supporting rural SMEs in online sales.

• Accelerated Capital Allowance (ACA) Adjustment: The period for claiming ACA on ICT equipment and software has been shortened from 4 years to 3 years, accelerating tax benefits for digital investments.

2. Mandatory E-Invoicing

• Transition to E-Invoices: From August 1, 2024, the Inland Revenue Board of Malaysia (LHDNM) will only accept e-invoices from taxpayers with annual income or sales exceeding RM100 million. Full implementation is targeted for July 1, 2025.

• Tax Identification Number (TIN) Expansion: E-invoicing will be supported by expanded use of TINs to reduce tax leakages.

3. Taxes

• Service Tax Increase: Service tax will increase from 6% to 8%, excluding telecommunications and food & beverage sectors. The tax scope will expand to logistics, brokerage, insurance, and karaoke services.

• Capital Gains Tax: Starting March 1, 2024, local companies disposing of unlisted shares will face a 10% capital gains tax, with specific exemptions.

• Global Tax: A global minimum tax is expected by 2025 for companies with global income exceeding EUR750 million.

• Luxury Goods Tax: A luxury goods tax ranging from 5% to 10% will be introduced on certain high-value items like jewelry and watches. The implementation date remains unannounced.

• Tax Deduction for ESG Expenditures: To encourage sustainability, a proposed yearly tax deduction of up to RM50,000 will be available for Environmental, Social, and Governance (ESG)-related expenses.

4. Sectoral Opportunities and Support

• Increased Funding for Education and Health: The Health Ministry and Education Ministry receive RM41.2 billion and RM58.7 billion respectively, opening opportunities for SMEs in healthcare, education, and related services.

• TVET Funding: RM6.8 billion allocated for Technical and Vocational Education and Training (TVET) to upskill the workforce and enhance competitiveness in a digital economy.

This overview highlights key elements of Malaysia’s Budget 2024 that retailers can leverage to navigate the coming fiscal year successfully.

The Complete Solution For Seamless UCX

EasyStore is a unified commerce platform designed to unify online and retail customer experiences. Over 50,000 brands have grown by embracing UCX with EasyStore, delivering a consistent and unified shopping experience.

• Shopping Freedom: Let customers shop via app, mobile, or web with seamless experience across platforms to boost loyalty.

• Passwordless Buying: Simplify login with email or mobile number, speeding up purchase decisions.

• Rapid Shopping Journey: Save shipping details to ease repurchases and encourage frequent orders.

• Deliver Excitement Anywhere: Offer flexible delivery options, from home delivery to in-store pickup, influencing buying decisions.

• The Path to Lasting Loyalty: Ensure consistency between online and offline shopping to build trust and encourage repeat business.

• Different Staff, Same Experience: Maintain consistent customer interactions across all channels to elevate the brand reputation.

Ready to unlock the full potential of your retail business with seamless Unified Customer Experience? Discover how EasyStore can help you thrive in Malaysia’s evolving retail landscape today.

Make Customers Love Buying From You

EasyStore empowers your brand to prioritize customers and enhance their experience, creating a unified customer experience (UCX) that makes customers love buying from you.

Over 50,000 brands have grown their businesses by embracing unified customer experiences (UCX) strategy through EasyStore across multiple sales channels - online store, retail outlets, marketplaces, and social media, ensuring consistency in product and service offerings for a seamless shopping journey.