KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has called on the government to introduce targeted financial assistance to support businesses vulnerable to the implementation of the latest lockdown.
In a seven-page statement today, ACCCIM said among sectors that required assistance and implementation of the lockdown which will be conducted in three stages from June 1 are those requiring in-person interactions such as travel services, self -employed businesses, micro businesses as well as service industries such as tourism, restaurants, and retailers.
Apart from accelerating the disbursement and spending of the 2021 Budget allocation of RM322.5 billion, especially the RM5 billion small and medium projects across the country which is crucial to support domestic demand as well as benefiting small and medium-sized contractors, ACCCIM proposed the government put in place measures that could ease cash flow and financial burden among vulnerable economic sectors and businesses
The ACCCIM listed 10 proposals that could help to alleviate the financial constraints of some businesses from worsening as a result of the lockdown.
Among them include re-affirming the continuation of enhanced Targeted Repayment Assistance (TRA).
"All financial institutions must continue to assure that the credit facilities remain available, including and not limited to TRA, but also other forms of assistance such as Rescheduling and Restructuring (R&R) package.
"The financial assistance must be made applicable to customers across various income groups, businesses regardless of size and customers affected with simplified documentation requirements," read the statement.
The ACCCIM also called on the government to consider providing a one-off grant between RM2,000 and RM3,000 to eligible micro-businesses and petty traders as well as one-off cash assistance payment of at least RM500 to taxi operators, e-hailing drivers, hawkers and daily or weekly paid employees with registered employers.
"Extend the Wage Subsidy Programme that will expire end of next month by another six months until this December.
"For those not eligible for the programme, the government can consider allowing the employers to pay 70 per cent of their employees' wages in easing their employment cost to retain the workers," it said.
ACCCIM also urged the government to consider extending the Human Resources Development Fund (HRDF) levy exemption until the end of the year, provide 25 per cent discount to all companies with foreign worker permits that will expire in June until December 2021 as well as extending special tax deduction to provide a reduction of rental of at least 30 per cent on business premises for SMEs and non-SMEs until this December.
"Extend a 10 per cent discount on electricity bill for another six months until Dec 31 this year to hotel operators, theme park, convention centres, shopping malls, local airline offices and travel and tourism agencies.
"Other operating costs relief measure is allowing delayed utility payments for SMEs."
Other proposals put forth by the association includes reintroducing postponement of income tax instalment payments for three months for all SMEs, provide blanket approval for the application of an extension of time to pay its monthly or bi-monthly tax estimates instalment instead of considering on a case-by-case basis as well as the payment of the balance of tax for Year of Assessment 2020 and 2021 in six monthly instalments.
"Given the urgency of expediting the vaccination rate, we propose that the government facilitate the chamber, industries and private sector in accessing the supply of vaccines and make an arrangement with private hospitals and clinics to administer the vaccines for their employees.
"This concurrent move together with the Government's vaccination program can achieve wider immunisation in the workplaces for the safety of employees.
"With some businesses, especially SMEs still struggling to recover their revenue, the government can consider providing subsidy for vaccination and tax deductions for employees' Covid-19 vaccination costs."