KUALA LUMPUR: More lifelines are needed to assist micro, small and medium enterprises (MSMEs) to stay afloat in an increasingly challenging economic situation, said National Recovery Council chairman Tan Sri Muhyiddin Yassin.
In a post on his Facebook page, Muhyiddin has urged the government to take immediate action to ease the burden of entrepreneurs, who are severely affected by the sharp increase in costs.
This, Muhyiddin said, was to ensure that an even economic recovery process can be achieved.
"I am concerned that if there are no drastic measures taken by the government, especially in the 2023 Budget which will be tabled tomorrow, more MSMEs will be forced to close down (gulung tikar).
"What's worse, more Malaysians may also lose their jobs and income. Do something right away," he said, adding that he attended a roundtable meeting with the Malay Chamber of Commerce Malaysia (DPMM) yesterday.
Muhyiddin added, at present, 53 per cent of the 950,000 registered small and medium enterprises (SMEs) are owned by the Malays and Bumiputera.
Meanwhile, Muhyiddin said DPMM has expressed their worries about the cash flow problems among MSMEs operators.
"This is in line with the recommendations made by the NRC that MSMEs must be given a special moratorium since this sector has yet fully recovered from the unprecedented Covid-19.
"The situation worsened with the increase of the Overnight Policy Rate (OPR) for three times in a row by the Bank Negara Malaysia this year."
In the meeting, Muhyiddin said DPMM has recommended for the Inland Revenue Board (IRB) to give discretion, especially in relation to fines and penalties imposed on Malay entrepreneurs who have just recovered from the pandemic.