SANDAKAN: The over 50 days of mandatory business closure under the Movement Control Order (MCO) due to the Covid-19 pandemic thus far has caused the majority of Small Medium Enterprises (SMEs) to suffer, said LDP Supreme Council member Robert Chong (pic).
He said SMEs continue to see no income under the next phase of the MCO leading to permanent closure if the Government does not take urgent measures to prevent this.
“Even though the Government has rolled out a wage subsidy programme, it as a short term solution,” Chong said in a statement.
“There are three months of wage subsidy of RM1,200 per month but the company has to keep the workers for six months with wages.
“The following three months, the company has to fork out on their own,” stressed Chong.
He said some of SMEs employed foreign labour and are not entitled to apply for wage subsidy.
He noted SME Association of Malaysia’s projection that should this continue about 200,000 to 300,000 or up to 30pc of SMEs may face collapse in the coming year, resulting in some two million being jobless.
Chong also stressed that not everyone can get loans from banks under the special relief fund programme (SRF) and hoped banks would be more flexible with a lowest flat rate.
He cited EPF Chief Executive Officer Tunku Alizakri that if 1pc of SMEs fail, more than 60,000 jobs will be lost, which will impact 0.6pc of our country’s Gross Domestic Products (GDP).
Chong hoped the State Government would roll out more effective and beneficial strategies on helping SMEs to overcome the situation.
“Bank Negara announced an unexpected decision on moratorium for existing loans with banks.
“This is negative and may lead to more uncertainty for SMEs,” he said and questioned the last minute U- turn on the temporary relief planning.
Source : http://www.dailyexpress.com.my/news/151879/majority-of-smes-hit-ldp/