Image credit: New Straits Times
BUSINESSES, especially small and medium enterprises (SMEs), are hoping the funds allocated to them under Johor Budget 2022 can be disbursed to them without delay.
Johor Baru Chinese Chamber of Commerce and Industry president Low Kueck Shin said the funds would help them cope with the difficulties brought on by the Covid-19 pandemic.
He said the past 22 months had been the most challenging as the pandemic has caused uncertainties and impacted global economic growth.
“The allocation under next year’s state budget is timely as the moratorium is going to end this month,” he pointed out.
Low said the money would come in handy, allowing entrepreneurs to service bank loans as their operations have been affected by the various movement control orders.
“SMEs are the biggest employers in the country providing between 95% and 97% of jobs in the labour market,’’ said Low.
He urged the state government to act fast to boost Johor’s economy, including attracting more new foreign direct investments.
Johor South SME Association adviser Teh Kee Sin said SMEs had been suffering losses since the Covid-19 pandemic began early last year.
“The situation kept getting worse after the borders between Malaysia and Singapore closed in March 2020.”
He said the SMEs and microenterprises, particularly those located in Iskandar Malaysia, heavily depended on Singaporeans.
“We have about 400,000 locals working in Singapore who have been stuck there and are spending money in Singapore instead of in Johor,” said Teh.
He added that the MCOs and travel restrictions had caused many SMEs and microenterprises to cease operations, resulting in unemployment.
Teh said with the relaxation of travel restrictions, SMEs certainly needed more cash to reignite their business momentum.
“Hopefully, the land Vaccinated Travel Lane (VTL) between Malaysia and Singapore, which opened on Nov 29, will have a positive impact on Johor’s economy,’’ he said.
Johor Indian Business Associa-tion (Jiba) president P. Sivakumar said state funding would help to increase hiring of workers apart from keeping businesses operational.
“SMEs need more working capital for day-to-day operations and to fund projects that contribute to growth,’’ he explained.
Sivakumar said this was a positive move by the state to ensure the recovery of SMEs, in particular petty traders, from the long MCOs that had caused the wind-up of several enterprises in Johor.
He also hoped that business operators would not increase their prices to make up for earlier losses as it would be counter-productive.
Sivakumar lauded Agrobank and SME Bank for their participation in enabling several locals to go into cash crop cultivation.
“We hope Johor’s economy will rebound once the Causeway and Second Link are fully opened,” he said.
Johor government has allocated RM100mil under next year’s budget in cooperation with Bank Rakyat to provide cash flow to SMEs and microenterprises.
The state will bear part of the interest for loans for SMEs and the full interest for loans given to micro enterprises.
Agrobank and SME Bank will also participate in the initiative.
Source: https://www.thestar.com.my/metro/metro-news/2021/12/06/smes-call-for-quick-disbursal-of-budget-funds