JOHOR BARU: Small and medium enterprises (SMEs) in Johor hope the Federal and state governments could provide financial assistance to them to overcome difficulties in the coming months.
Polyester button manufacturing company proprietor Hanson Lim, 35, said tax reduction was a good way to help the SMEs as Malaysia fights the Covid-19 pandemic.
He said based on the situation, global economy was bound to be affected and take time to recover.
“Business is slow everywhere and the SMEs will also be affected by the situation, ’’ said Lim.
He hoped the government could provide grants or provide low-interest or interest-free loans to help SMEs during this difficult times.
Lim, who has been in the business for 10 years, said while it was commendable that banks had offered a moratorium on loans for the next six months, interest rates would continue to be charged.
“This will burden us, ” he said.
Engineering services company owner Ethan Chu, 45, said in addition to tax reduction and rebate, there should also be subsidies to help businesses facing losses.
He said SMEs that export products were unable to complete customers’ orders in time and now the situation was made worse by the movement control order (MCO) until April 14.
“The initial MCO was imposed on March 18, after a day’s notice, and we were all caught in a difficult situation, ’’ said Chu who been running the business for 20 years.
He said some customers had cancelled their orders with some saying they reserve the right to claim for late deliveries.
Chu said Bank Negara Malaysia’s (BNM) moratorium may not solve the problems faced by SMEs during the MCO as continued income was necessary for their survival.
“Down the road, SMEs may have no choice but to cease operations, ’’ he said.
A mobile phone retail outlet owner, Timothy Tan, 30, said since the MCO was imposed, he had ceased doing business and there was no income.
He said he was facing problems getting by.
He hoped the government could offer some form of assistance to businesses like his as the MCO would have a major impact on them.
Tan, whose outlet is in a shopping mall here, said he still has to pay RM40,000 in monthly rental and hoped the mall operator could give retailers a discount on rentals for the next six months.
“Most of us are long-term tenants and the operator should consider helping us during this pandemic, ’’ he added.
Meanwhile, Johor South SME Association adviser Teh Kee Sin said about half of the 907,065 SMEs in the country might cease operations in the next one to two years.
“Thousands of workers will lose their jobs as the SMEs might not be able to sustain their businesses, ’’ he said.
Teh urged BNM to intervene and help as banks still imposed interest on loans taken, including by the SMEs during the six-month deferment period.
Source : https://www.thestar.com.my/metro/metro-news/2020/04/01/smes-in-johor-seek-financial-aid-to-see-them-through-difficult-times