PETALING JAYA: Hundreds of businesses reeling from the impact of the recent floods are appealing to the government for additional help.
Early estimates from a survey by the Federation of Malaysian Manufacturers (FMM) put losses at RM195 million as of last week, and that was only the amount incurred by 100 companies.
As more companies report their losses, the sum is expected to rise sharply.
“We need the government to step in now,” FMM president Tan Sri Soh Thian Lai told theSun.
“We are appealing to the government to extend the moratorium on loan repayment by another three months for those affected, given the extent of the damage they suffered.”
Soh said companies that responded to the FMM survey reported that as a result of the floods, their property and other assets as well as finished products, had been damaged or destroyed.
He said with the supply chain disrupted, potential earnings would also be affected.
Bank Negara Malaysia has announced that a RM200 million financing facility has been made available for micro, small and medium enterprises that have been affected by floods.
The money will be channelled through the Disaster Relief Fund 2022.
However, Soh said it is still too early to tell if it would be effective in helping businesses recover.
Businessman Louis Ooi estimated that he lost about RM500,000 in the floods.
He said at least 20 computers and two cars at his business premises in Taman Sri Muda, Shah Alam, were submerged.
Ooi, who is also Small and Medium Enterprises Association (Samenta) chairman for the southern region, said it was fortunate that some of his equipment had been placed on the upper floor of his shophouse.
He added he had his cars towed to the Proton service centre but was told he had to wait for about six months as there was a large number of vehicles awaiting repairs.
He has submitted claims for the damage to his insurance company but expects it would take some time before he gets compensated.
Soh said given the concentration of industries in the flood-affected areas such as Shah Alam and Klang in Selangor, and other industrial zones in Pahang and Perak, many factories would have been affected.
“The floods have caused substantial damage to property, other assets and products, as well as disrupted production and supply chain operation.”
He said many workers could not get to work or return home from work because the main highways were flooded.
Soh also called on the government to provide grants or double tax deductions on expenditure for repairs and replacement of machinery and property.
The floods that left many roads and highways leading to Port Klang inundated also disrupted logistics operations extensively.
Soh said many people working in the industry were not able to show up for work. As a result, shipments were delayed and rescheduled.
Samenta secretary-general Yeoh Seng Hooi also asked for a three-month extension on the moratorium on loan repayment for those affected by the floods.
He told theSun it would help the micro, small and medium enterprises to recover quickly if commercial banks and the Credit Guarantee Corporation of Malaysia were prepared to introduce disaster relief loans, and insurance companies could expedite the payment of compensation.
“The key is to have sufficient funds to clean up and recommence their businesses,” he added.
Many companies suffered damage to their property and other assets as well as finished products due to the recent floods.
Source: https://www.thesundaily.my/home/p5-lead-jan-3-damage-CY8717884