KUALA LUMPUR: Small-time businesses are facing difficulties to remain afloat, following the implementation of the Movement Control Order (MCO).
National Chamber of Commerce and Industry of Malaysia immediate past-treasurer Don Nazwim Don Najib said industry players felt the new stimulus package fell short in terms of business sustainability.
“Some SMEs may have to close shop if the MCO extends beyond April. This may have a domino effect,” said Nazwim when contacted.
He said businesses should play their part in this “war” by protecting as many jobs as possible.
Malaysian Associated Indian Chamber of Commerce and Industry (MAICCI) president Datuk R. Ramanathan claimed small-and-medium enterprises (SME) and small-and-medium industries (SMI) employers were not benefitting from the package.
“The business fraternity are eagerly yearning for a compassionate and relieving stimulus package from the government to cushion the business losses currently and in coming months to go.
“Unfortunately, the announced stimulus package did not cater significant and immediate liquidity into the economy for the SMEs and SMIs,” said Ramanathan.
He said SMEs contributed 38 per cent to the country’s gross domestic product (GDP) and yet utmost priority was not given to them in the stimulus package.
“We need more assistance to survive the Covid-19 onslaught because the corporate sectors will be planning to opt for retrenchment and belt-tightening measures once the MCO ends in mid-April or mid-May if it's extended further.
“Many corporate companies are already reviewing their procurement contracts and hinting that cost-cutting efforts are already in the fray,” Ramanathan claimed.
He called for the wage subsidy programme under the stimulus package to be implemented across SMEs without subjective conditions.
“All the employers should qualify for this subsidy as long as the employees are legitimately in their payroll.
“We request the government to be less stringent on the conditions and increase the subsidy from RM600 to a minimum of RM1,000 monthly for least one year,” said Ramanathan.
He also called on the government to reduce SME corporate tax, slash foreign workers levy renewal payment, suspend or waive the Employer’s EPF contribution (13 per cent) for six months, cut TNB commercial and industrial tariff.