IPOH – Many representatives of small and medium enterprises (SME) in Ipoh have attended the briefing session of the Sin Chew Business Excellence Awards.

Attendees were briefed on the Awards' categories, entry eligibility, terms and conditions, judging criteria and other participating details.

Awards committee chairperson Lenny Chiah said that the country's SMEs are growing and the industry serves as the backbone of national economy. The Sin Chew Business Excellence Awards is meant to recognise and praise the contribution of SMEs with outstanding performances.

She said that the Awards' primary target audience is SMEs by nomination followed by secondary audience in the non-SMEs corporate sector by invitation.

"All SMEs which have now transformed into large corporates are welcomed to participate to share their success stories.

"The independent panel of judges consist of well-reckoned leaders and reputable representatives from various different industries and business associations. They are Presidents or trustworthy representatives from The Federation of Chinese Associations Malaysia, The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Malaysia Institute of Corporate Governance, SMI Association, PUMM, MRCA, BAM and Sin Chew Media Group Top Management representatives," she added.

At the briefing, SJ Grant Thornton partner Desmond Tan analysed corporate financing methods and explained the procedures for listing.

He said that corporate financing means existing businesses raise funds to complete the construction of project investment. He analysed how a coprporate should choose a financing package that suits the its financing purposes and achieve sustainable development.

He said that there are two corporate financing methods, namely debt financing and equity financing. Although debt financing retains the right to regulate, the corporate must bear installment loans and interest pressures.

"In contrast, equity financing is more effective. If possible, initial public offering should be an option to raise additional funds and seize a growth opportunity," he said.

He also stressed the importance of choosing good and reputable professionals to successfully complete the listing procedures.

Meanwhile, Grant Thornton senior executive director Seah Siew Yun said that everyone worries about taxes but some tax measures are actually encouraging, including tax incentives, tax exemptions, tax relief and tax waiver.

She said that compared to other countries, many goods in Malaysia are tax exempted, such as bread, petrol, tablet computers, MP3 players and newspapers.

She said that Malaysia is one of the world's governments imposing the highest Sin Tax. Smokers have actually made a great contribution to the country's tax revenue, as 90% of tax rate is imposed to each packet of cigarettes.

She said that over 70% of the country's tax revenue comes from Direct Tax, and the dividends received from Petronas have dropped to 30%. Indirect Tax will have to be raised to get a more flexible income.

"Compared to other countries, the Indirect Tax in Malaysia has not made enough contribution. The Goods and Services Tax (GST) is actually a positive measure. Unfortunately, the issue has been politicised, delaying its implementation," she said.

She said that in fact, among the more than 28 million people in the country, less than two million people have opened tax accounts and only some 1.2 million are paying taxes.

"Therefore, once the GST is implemented, people of all social levels will have to make tax contribution," she added.