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Image credit: Utusan Borneo Post

PETALING JAYA: Small businesses lost RM40.7 billion during the movement control order last year, suffering an average loss of RM35,000 each.

More than 70% of the entrepreneurs are in the B40 category with very little savings and without any employment benefits, the entrepreneur development and cooperatives ministry said.

In addition, more than 90% have no insurance and 70% are without safety nets to fall back on should they lose their jobs.

The minister, Wan Junaidi Tuanku Jaafar, said the numbers were obtained from a survey of close to 7,000 businesses, and showed the dire situation the micro-, small- and medium-sized enterprises (MSMEs) suffered from being unable to operate during the MCO.

He said the situation faced by 1.15 million registered MSMEs would have a bearing on the country’s plans to achieve a higher gross domestic product (GDP) and exports for the sector by 50% and 30%, respectively, by 2030.

In a statement today, Wan Junaidi said his ministry had proposed enhanced SOPs to allow these businesses to operate as part of a balanced approach.

“Lockdown is no longer the answer to the problem. We have to accept the fact that we need to live with Covid-19,” he said.

As part of his proposal to the government, he said he had asked for the opening of businesses in the “first to close, last to open” (FCLO) category, besides six other economic activities, mainly in the food and beverages industry, including dine-ins.

He said FCLO businesses are essentially non-essential sectors such as pedicure, manicure and grooming services, beauty parlours, hair salons and barbers.

The SOPs entail a comprehensive set of guidelines from the handling of customers, managing staff, operating hours as well as premises maintenance to ensure all comply with the post-Covid-19 safety requirements.

The requirements proposed include weekly swab tests for all business owners and workers, and the immediate closure of premises if a positive case is detected, he said.

“The MSME sector is involved directly with the rakyat. Failure to help this sector would have a devastating impact on the country’s socio-economic landscape as well as the people’s overall well-being,” he said.

Source: https://www.freemalaysiatoday.com/category/nation/2021/07/29/small-businesses-take-rm40-7bil-hit-during-mco/