PETALING JAYA: Small and medium enterprises (SME) are hoping for a speedy turnaround once the government’s economic recovery plan is in place.
At the same time, a medical expert expressed confidence that the government’s vaccination target is achievable.
While the path to recovery will soon be made clear, Small and Medium Enterprises Association secretary general Yeoh Seng Hooi stressed that consistency and justification for new policies are essential.
He was commenting on an announcement by Prime Minister Tan Sri Muhyiddin Yassin that the government is in the process of fine-tuning the National Recovery Plan (NRP) for presentation at the next Dewan Rakyat session in September.
The 12th Malaysia Plan and Budget 2022 are also expected to be tabled at the same parliamentary session, that is scheduled to begin on Sept 20.
At yesterday’s sitting of the Dewan Rakyat, the first since an Emergency was declared in January as part of measures to curb the spread of Covid-19, Muhyiddin briefed MPs on the way forward in the country’s Covid-19 war.
Yeoh said SME stakeholders were looking forward to the new plan.
“Businesses cannot function in an uncertain political-economic environment,” he said, adding that SME can no longer wait until the country moves into Phase Four of the NRP when businesses in the nonessential sectors are allowed to operate.
“By then, there will be no oxygen left for the businesses to survive on.”
In outlining the incentives, Muhyiddin said the government has agreed to provide an additional payment of RM1,000 under the Prihatin Special Grant for SME.
Half of the sum will be disbursed in September and the remaining in November.
To support the SME entrepreneur digitisation agenda, a matching grant of RM5,000 will be provided to SME to purchase digital systems or subscribe to digital platforms through the SME Digitisation Grant programme.
To enable SME to obtain financing facilities to revive their businesses during the recovery period, Muhyiddin said the ceiling for guarantees will be raised. The initiative is under the RM20 billion Syarikat Jaminan Pembiayaan Perniagaan Bhd.
“Bank Negara Malaysia is also committed to providing SME with access to financial assistance by increasing loan facilities to enterprises by another RM4 billion for 2021. As of end-June, there is still an overall balance in the SME financing facility of RM8.6 billion that can be utilised by SME,” he added.
Yeoh suggested that the government consider lowering the tax rate to 15% for SME for profits up to RM500,000 in 2022.
“This will be a welcome signal for SME.
“It will show that the government supports them and it will give them the incentive to push for profitability in 2022.
“Moreover, there should be fiscal incentives to promote exports as developed nations are on the recovery path. It would be faster and easier for Malaysian companies to plug into rising global demand,” he said.
Meanwhile, public health expert Prof Dr Rusli Nordin said the government’s plan to have all Malaysian adults full vaccinated by October can be achieved.
“All we need is a concerted effort from all stakeholders,” he said, adding that the success of the plan was also dependent on availability of vaccines.
Rusli said more volunteers are needed in the frontline to push the vaccination effort.
“My only concern is that those in rural areas and far from the federal government such as Sabah and Sarawak, may have their vaccines delayed,” he said, adding that more initiatives should be taken to ensure that everyone gets the necessary treatment.
Malaysian Medical Association president Datuk Dr M. Subramaniam described the rate of vaccination as commendable.
“However, it remains to be seen how the hospitalisation and death rates decline. There also remains the question of whether all the vaccines are equally effective. Careful surveillance will be needed,” he said.
Source: https://www.thesundaily.my/home/sme-stakeholders-looking-forward-to-more-concrete-recovery-plan-IF8124857