PETALING JAYA: The Branding Association of Malaysia, whose members make up close to 80% of small and medium enterprises (SMEs), said the government’s stimulus package does not address the root of the problem facing this segment.
President Datuk Eric Chong told StarBiz that the RM250bil stimulus package should have taken into account the two glaring problems – the prevention of massive layoffs and unemployment which are inevitable.
“No amount of financial aid given to the workforce at this point will ensure their well-being because they are still currently employed.
“What the government needs to do is to make sure that their SME employers are being financially assisted to get through this extremely difficult time, ” he added.
He said one of the priorities of the government should be to ensure that the SMEs, which account for 70% of all employment in Malaysia, survive this tsunami from the Covid-19 pandemic.
Due to the uncertainty of the future outlook and low cash flows, Chong said many business owners would soon be forced to lay-off their staff or close down their business in order to cut losses.
When this happens, hundreds of thousands of people will lose their jobs and the financial assistance given by the government will not be of any help to any of them, Chong pointed out.
To help members cope with the current crisis, the association has decided to help them “get their business going again”.
Therefore, it has launched an online programme series entitled “BAM Family Conference” aimed at encouraging members to trade among themselves.
“It’s very important for SMEs to not stop being productive during this lockdown period.
“Business is about circulation and you don’t need to meet face-to face to strike a deal.
“We can meet online and have ‘virtual handshakes’. If you buy something from me and I buy something from you, we are keeping our businesses going. No money? No issue. Let’s barter trade. This is not the best way to do business, but given the current situation, it at least keeps things going, ” he noted.
Response to the first conference which was held on March 27 was great, he said, noting that close to 100 members met online and did some serious business.
“Very interesting and creative business ideas were conceived and pitched, ” he added.
Chong said the association would organise a few more such conferences within the movement control order (MCO) period so that their members can tap into the full potential of internal resources and opportunities,
He added: “We can’t depend entirely on the government. In business, we need to be resilient and self-reliant. Let’s help ourselves.”
He also said that at the moment, at least 30% of the association’s members were Star Outstanding Business Awards (SOBA) winners.
On the prospects of the branding industry this year amid the pandemic, Chong said he expects it to be a tough year.
“The thing about this pandemic is that there’s no certainty about when it can be brought totally under control on a global scale.
“So far, the only country which has been able to demonstrate the ability to get the situation under control is China, and even that has taken China three solid months to do. And they still aren’t out of it totally.
“Schools in Shanghai, for example, were initially set to resume but now, due to the new confirmed cases as a result of overseas students returning to the country, it has been put on hold again.
“This means that even China is not totally cleared of the virus, ” Chong noted.
He said unless the virus is wiped out or a tested vaccine has become available, disruptions on a global scale are inevitable.
“Globally, we will sink into a severe recession, as normal economic activities cannot be carried out. This will also impact the branding and other industries on the whole. The good news is that there will be new business models (such as online ones) that will rise and rule the world, ” he noted.
Source : https://www.thestar.com.my/business/business-news/2020/04/06/smes-said-to-be-lacking-stimulus