KUALA LUMPUR: Operators of small- and medium-sized enterprises (SMEs) to cope with the slowdown caused by the Covid-19 outbreak can heave a sigh of relief with the announcement of an aid package for them.
Christy Ng Sdn Bhd founder Christy Ng said the initiatives announced under the Prihatin Package for SMEs (Additional Measures) were a big relief.
“I think our prime minister did his best to help SMEs. It’s not easy being in his position, but we appreciate everything given.”
She said she hoped the disbursement of the aid would be swift and easy.
She suggested that bureaucracy be reduced to ease the claims process for the wage subsidy.
Prime Minister Tan Sri Muhyiddin Yassin, in his announcement, said RM7.9 billion had been allocated for the wage subsidy programme, which would benefit 4.8 million workers with a monthly income of RM4,000 and below.
A company with 200 workers and above would receive RM600 per worker, those with 76 to 200 workers would receive RM800 per worker and those with up to 75 workers would receive RM1,200 per worker.
Ng said Muhyiddin and his team had been very considerate of the plight of SMEs.
“We are suffering together. After this, we must bangkit (rise) together and get our beloved nation back on track.”
Business Sustainability Taskforce Covid-19 secretary-general Shahul Hameed Dawood said the government had been forthcoming and transparent in the way it approached SMEs.
“The stratified wage subsidy from RM600 to RM1,200 increases the wage subsidy itself to RM13.8 billion.
“The benefit is extended to foreign workers by reducing the levy by 25 per cent, which will ease cash flow positions.”
He said the RM3,000 grant and the interest-free microfinancing programmes by Bank Simpanan Nasional and the National Entrepreneur Group Economic Fund (Tekun Nasional) gave a huge breather to the largest segment of SMEs .
He said the government had been proactive in enabling a single window of application for the Special Relief Facility through the imSME portal and activating the implementation dashboard of the Implementation and Coordination of National Agencies Unit (Laksana) under the Finance Ministry to monitor and track the Prihatin Rakyat stimulus package rollout.
“The incentives to landlords in the form of taxation benefit, moratorium for Companies Commission of Malaysia’s documentation and other measures in the earlier announcements are steps in the right direction.
“We in the business community hope that the financial institutions and businesses use the SRF-i for its intended spirit, which is to alleviate short-term cash flow problems faced by SMEs affected by the Covid-19 outbreak.”
SME Association of Malaysia president Datuk Michael Kang said the association was thankful for the measures in the stimulus package that focused on SMEs.
“The government heard our voice that we should take care of the 700,000 micro SMEs nationwide, most of which are run by those in the B40 group.”
Muhyiddin announced that the government would provide a grant of RM3,000 to each micro SME.
These SMEs, however, must be registered with the Inland Revenue Board to get this aid.
On the government’s decision to abolish loan interests for micro-credit schemes, Kang said it would help SMEs greatly.
He said the association hoped the government would allow all SMEs to operate, whether they were considered an essential service or not.
“By doing so, these SMEs can generate income and have cash flow.
“The same goes for SMEs doing export. We hope the government can allow them to continue to operate as we are part of the global supply chain.”
He said the association would try to talk to the government and see what areas needed more help to stimulate the economy.
“The economy should not stop because of the Movement Control Order.
“The economy must move to generate income for the people and country.”