RM40bil more needed to help SMEs survive, say bosses

RM40bil more needed to help SMEs survive, say bosses

Malaysian Employers Federation executive director Shamsuddin Bardan says many employers are still facing cash flow problems and need funds to stay in business.

The Malaysian Employers Federation said the Pemerkasa Plus aid package worth RM40 billion was meant only for the first two-week phase of MCO 3.0, but the country is now in the second phase of the lockdown.
KUALA LUMPUR:
The Malaysian Employers Federation (MEF) hopes the government can allocate an extra RM40 billion to employers to help them mitigate the impact of the movement control order (MCO) 3.0 that has been extended until June 28.

Executive director Shamsuddin Bardan said many employers are still facing cash flow problems despite the various measures and aid programmes announced by the government.

“This is because during the MCO 3.0 period for almost a month, they’ll have no income but still have to bear the fixed costs, such as salary, rent, utility and others,” he said during the Malaysia Petang Ini programme on Bernama TV.

He said the situation had caused anxiety among many employers, who are worried they may not be able to survive the latest lockdown.

Shamsuddin said employers understood that only 17 sectors were allowed to operate during the lockdown period so as to contain the Covid-19 pandemic.

“Employers say they need a whole lot more help from the government.

“We appreciate the Pemerkasa Plus aid package worth RM40 billion, but it was for the first two-week phase of MCO 3.0, but now we are in the second phase of the lockdown.

“So we are hoping the government can increase the funds for the aid package,” he added.

Shamsuddin noted that most of the employers are small- and medium-sized enterprises.

“And in this group, a big number of them – about 650,000 – employ fewer than five workers. So we are talking about very small entrepreneurs,” he said.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.