MCCC issued a statement today calling on the government to pay heed to the financial problems that faced by the SMEs, especially the cash flow big woe, and provide comprehensive support through such measures as tax cuts, interest rates and loan facilities so as to prevent the collapse of enterprises and protect the employment opportunities of the people.
Prime Minister Tan Sri Muhyiddin yesterday announced RM 250 billion "Care for the people's economic revitalization package" to deal with the severe blow brought about by the COVID-19 pandemic.
MCCC believes that the corresponding allocation has made countermeasures especially in the areas of combating the epidemic and caring for the people.
MCCC pointed out that the 28-day MCO no doubt would help to prevent the spread of the pandemic, but at the same time, the suspension business and industrial operations have also placed more pressure on the SMEs. It hopes that the government could set up an unemployment fund to assist employees who may have laid off after the MCO , in addition to applying for unemployment benefits from SOCSO.
Malaysia-China Chamber of Commerce also suggests that the government could give direct assistance to the SMEs during the MCO, help these SMEs to pay at least 25% of their employees’ salaries. According to an internal survey conducted by Malaysia-China Chamber of Commerce, half of the members who responded to the questionnaires said that although the economic revitalization package is helpful, it could not obtain timely tangible results.
SMEs need more government assistance to survive the financial difficulties. The survey reflected that the current practice of enterprises is cutting the flow of resources and that downsizing is one of the considerations, and even to the extent of business closure.