KUALA LUMPUR: MADCash founder and managing director Nuraizah Shamsul Baharin (pictured) is urging women entrepreneurs to register their businesses despite widespread hesitation due to tax concerns and the possibility of losing eligibility for Sumbangan Tunai Rahmah (STR) assistance.
Nuraizah also called on the government to decouple business registration from aid eligibility to support entrepreneurial growth without penalizing the economically disadvantaged.
“Just because they’re trying to legalize their businesses doesn’t mean poverty is going to be alleviated. It just means they’re being penalized when they’re trying to do the right thing and register their business.”
“As soon as you register your business, you will no longer be able to get this STR,” she said in an interview with SunBiz.
She stressed that businesses only have to pay tax if their operations are “highly profitable.”
“There’s a standard where you don’t actually have to pay tax.”
She added that even if they have to pay taxes, it will only contribute to nation building.
Nuraiza also highlighted the challenges women face in securing loans and investments.
She shared personal experiences of investors questioning her marital status and motherhood.
“I have two disadvantages: I’m not married and I have kids. So it’s a double disadvantage. So how can I take care of the business and the kids? I’ve been doing this for 20 years and I’ve had no problems.”
“You never ask a man, ‘How are you going to take care of your children?’ You never ask a man that question. Only women. That’s the prejudice people have.”
“When you look at a woman, you see all the things she has to do around her. When you look at a man, you only see someone who is in the business.”
She added that this prejudice doesn’t just come from men, but from other women who perpetuate the stereotype.
Nuraiza added that women often feel they have to hide their money, which leads to them being ignored by banks.
“This lack of visibility means women are unable to access loans because they often do not have assets such as a home or car in their name which can be used as collateral,” she said.
She said MADCash aims to help women who have no collateral but have promising businesses grow and gain access to loans.
“So when we talk about inclusivity, we also talk about what it takes to have an equal opportunity to get something.
“That’s why when you talk about loans, banks ask for collateral,” she said.
“Banks require that you have the capacity to take on personal liability, even when taking out a business loan.
“You will be responsible for the loan yourself.”
She said many women entrepreneurs like those selling nasi lemak do not know their profit margins or how to set the right price for their products.
“There’s no profit margin because we don’t take into account all the costs. MADCash teaches women to separate their business and personal income, track their sales and understand their financial situation.
“Using tools like QR Pay instead of cash allows women to better manage and record their assets, making it easier for them to secure loans and other financial products,” she said.
Nuraiza stressed that in order to break the cycle of poverty, women, especially those in low-income brackets, need to become financially literate.
“Financial education should start early to prevent future generations from falling into poverty.”
Nuraizah received the FRONT & Women Financial Empowerment Award, sponsored by Sun Life Malaysia, in recognition of her efforts in supporting women entrepreneurs and promoting financial stability.
MADCash is a fintech company dedicated to empowering women who don’t have access to mainstream financial services to grow their businesses and become financially stable within two years.
