LETTERS: The world shut down when Covid-19 came without a warning. All of our plans — to go on a vacation, start a family and kickstart projects — went down the drain as we were placed under movement restrictions.
Some companies had to cease operations. Millions of people globally lost their jobs. In Malaysia, some survived by tapping into the business industry.
While this might bring hope to some, it was sadly a threat to small- and medium-sized enterprises (SMEs), which bear the biggest brunt of the pandemic's economic impact as a new group of opponents enters the arena.
According to the Companies Commission of Malaysia (SSM), 82,555 new businesses were registered between April and July. This means that the supply for the sales and services industry has multiplied but, unfortunately, buyers are facing a financial crisis.
As a result, a large number of SMEs had to close due to a lack of profit. SSM data showed that 32,469 of registered companies (not limited to SMEs) shut down between March and September. Only enterprises with loyal customers and an effective sales strategy were able to stay afloat.
In March, the government implemented the Movement Control Order to contain the spread of Covid-19. Most affected were restaurateurs, hawker stall operators and shop owners, who rely on visitors.
When it was decided to loosen the standard operating procedures (SOP), things were far from normal as people were cautious. Most would only dare to go out for grocery shopping.
Should they dine out, only two persons were allowed to sit at a table. From the food service operators' perspective, the number of diners at any one time is limited. So no matter how popular they are, there is that drawback.
As an alternative, many SME entrepreneurs turned to e-commerce. Besides Shopee and Lazada, social media, too, can act as a marketing platform if done effectively and creatively. F&B enterprises, on the other hand, rely on delivery services, such as GrabFood and Foodpanda.
These avenues have their own disadvantages but it's helpful in terms of reaching out to new customers. However, it may be challenging for those who are not exposed to such technology.
To reduce the people's financial burden, the government has provided support through initiatives. According to a New Straits Times report, these included "funding, rescheduling of loan repayments, loan repayment moratorium, and online entrepreneurship training and guides, as well as implementation of high-impact programmes".
For SMEs in Selangor, the state government offers assistance through Belanjawan Selangor 2021. RM2 million has been allocated to help enterprises and kindergarten teachers, and RM6.08 million for entrepreneurship programmes.
Social media users have made viral the hashtag, #sapotlokal, which urges the public to support local businesses. At the end of the day, digitalisation is key. Technology can help SMEs in their ventures. Since it's developing at a rapid pace, they just have to catch up.
Things will never be the same as long as the pandemic persists. No one knows when it will end. For now, we have to adhere to the SOP and get used to the new normal.
Selangkah, introduced in May as a contract tracing system, is concerned about the people's plight. Armed with the mission to improve the livelihood of the people, Selangkah is working hard to find a solution. And as long as the future is uncertain for SMEs, Selangkah will keep on trying.
DR HELMI ZAKARIAH, BIBI NURSHUHADA RAMLI
Inclusivity and Digital Gap, Selangkah Team, Selangor
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times