Often when we discuss Budget, we will always talk about money. After some time of this repetition, year in year out, we become accustomed that only with money things can change or become better. That’s not true. Yes? What then?
Since I am in coaching and training business, you probably guess – mindset. Not as well. What then?
I am more inclined in looking at innovative ways of doing things. We can call it processes, SOPs, guidelines or simply perspectives. Do you know even at work sometimes we do they we do things not because it is in the SOPs, but rather because it has always been done that way? Right? Simply because it has been working, it doesn’t justify to keep it that way.
That’s the context of my Budget Wishlist writing. I believe in hard times like now, the government has to be more creative and innovative. The rest of us should also adopt creativity and innovation to manoeuvre this crisis successfully. I fully convinced only with resilience we will be able to overcome any type of crisis.
Let’s get in to the details.
1. (General) Speed up payment process for all government and its agencies contract. Currently they claimed it standard payment is 14 days, but often in reality it runs into 4 weeks. Government agencies worse, now up to 60 days! If they can keep it max 7-14 days for the next 1-2 years, solid. With faster payments, they will be able to help cashflows especially for the SMEs that is facing tight cashflows these days.
2. (Specific) Increase the SST requirement for Training Service companies to RM 2M above. Now for revenues above RM500k, the company must charge SST, hence price increased. Some clients asked the Training Provider to absorp SST as they also facing budget cut internally.
3. (Specific) SST submission extended from 2 months to 6 months because now clients pay very late but Training Providers/businesses has to fork out cash to pay SST due. Impact cash flow kawkaw. There’s also hefty penalty for late payments! Next point.
4. Remove/Reduce the excessive penalty late SST submission. Now cashflow very tight for such deterrence.
5. (Specific) Limit government + GLCs foreign services purchase such as for training & consulting services to only max <5%. The rest they have to source local (actually many locals can do their training and consulting services). Some big firms are giving lots of bundled freebies training with their softwares & systems in return. Some proprietaries training is fine, but when the locals can do, why still outsource?? #belilokal
6. (Specific) All procurement with foreign services such as training & consulting must include at least 50% local components & qualified companies. Refer my article here https://innov8n.coach/corporates-how-to-belilokal-the-next-time-you-buy-services/
7. (General) Allow GLCs to spend their CSR budgets outside their Board mandate. This could help unlock millions into the social programs for the needies.
8. Although paycut to all Ministers and top government servant was unbudgeted for (what a shame), there should be 30-40% pay cut for this group and top salary bracket. Not for long, just for the next one year.
The pandemic that we are facing today will be remembered many a lifetime. It is changing the way we do things and there’s no way of going back to the old and previous life.
My take to many Senior Leaders, Board Members, C-suites, Politicians and taikors, it is time to transition to the next generation leaders and let them do the heavy lifting into a more productive and resilient future. You all can rest back and enjoy your retirement. #letitgo #letitgo
With these perspectives, I am full confident that we will make a dent together in the economy and we will be able to stay resilient in the next chapter.
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