KUALA LUMPUR: Aid provided by the government to small- and medium-scale enterprises (SMEs) gives an assurance to the sector that it can bounce back from the Covid-19 pandemic.
VG Offshore Containers International (M) executive chairman Ramasamy Menon said the RM2 billion aid offered under the short-term Economic Recovery Plan (Penjana) for SMEs would benefit industry players.
The Penjana SME Financing Scheme aims to sustain businesses affected by restrictions imposed to stop the spread of Covid-19.
The scheme, which was announced by Prime Minister Tan Sri Muhyiddin Yassin on June 5, enabled businesses to get a solid footing to face the future, said Ramasamy.
VG Offshore Containers International, based in Pulau Indah, Port Klang, Selangor, was founded in 2004. It is the largest containerised and modular solution provider in Malaysia.
Ramasamy said he had applied for a loan of RM500,000, as allowed for each SME, and hoped that he would get it.
Applications for the scheme opened this month. The loan's financing rate of 3.5 per cent per annum is guaranteed by the government and Bank Negara.
Ramasamy said if he could secure the loan, it would mean his business could run on its own without affecting others, including its supply chain partners.
"My priority is to ensure that my workforce of 120, comprising Malaysians and foreigners, can keep their jobs and that their salaries are paid.
"We do not want them to worry about the possibility of losing their jobs or not receiving wages because it will not only affect their work, but also their morale and mental health.
"So we must secure that first. We intend to use the funds to offset other loans, including one that has a higher interest rate of four per cent. We can save on the interest that way.
"The rest will be set aside for working capital, reserves and emergency funds.
"The initiative will not only help us now, but also provide a boost for SMEs to jumpstart their businesses."
He said he had benefited from the Prihatin Rakyat Economic Stimulus Package's Wage Subsidy Programme as his company was determined not to lay off any employee.
He said it had received a wage subsidy of RM1,200 for 14 of its local employees, most of whom hold administrative, junior executive and executive positions.
The six-month bank moratorium helped in the management of its cash flow while the free 1GB Internet data aided staff working from home, he said.
Source : https://www.nst.com.my/news/nation/2020/06/603244/bouncing-back-covid-19-pandemic