Small and Medium Enterprises Association (Samenta) national secretary-general Yeoh Seng Hooi hoped the authorities would ensure the fund reaches the intended SMEs that have been impacted by the full movement control order (MCO).

“The banks should not take the easy way out and lend to profitable SMEs with collateral. Furthermore, approvals must be expedient even though the staff are working from home because the speed of disbursement is crucial,” he told Bernama.

Yesterday, Prime Minister Muhyiddin Yassin also announced a RM1.5 billion allocation for the one-month wage subsidy programme under the Social Security Organisation for all affected economic sectors, with a limit of 500 employees per application.

While this is helpful, Yeoh said a one-month wage subsidy would not be sufficient and the programme should be for at least three to six months.

Other than that, he said the loan moratorium would be a big help to the SMEs and provide a much-needed lifeline for them.

Under the stimulus package, it was announced that all under the B40 group, those who have lost their jobs, as well as SMEs not allowed to operate during the MCO would be given the option of an automatic approval on bank loan moratorium for three months or a 50% reduction in loan repayment for six months.

Commenting on the full MCO and its impacts on Samenta members, Yeoh said those in the non-essential sectors, that is about 20% to 30%, would be hit the hardest.

“Members that are in the non-essential sectors, especially those running retail and tourism-related businesses, have depleted their reserves,” he added.