Malaysia-China Chamber of Commerce calls for greater efforts to assist SMEs to overcome difficulties

The Malaysia-China Chamber of Commerce (MCCC) appreciates the government’s launch of the second economic revitalization package to ease the people's living pressure, but calls on the government to step up its efforts to further help small and medium-sized enterprises to overcome difficulties, to avoid the possible tide of unemployment.

Tan Yew Sing, President of The Malaysia China Chamber of Commerce

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.

Closing down of companies, laying off workers and losing jobs scenario may probably be happening in May.  The government must prepare to face this potential problems squarely now and put in place effective measures to prevent the collapse of SMEs, which will give rise to a wide range of problems.

MCCC considered that local governments could also provide assistance to various trades and industries.  It is urgent for Prime Minister to give clear instructions, and local governments take the initiate to help the SMEs cope with the difficulties and join hands to tide over the hard times.

MCCC called on the government to set up a special task force to co-ordinate the work of various departments and to focus on supporting the continuing operation of SMEs. According to the data of the Ministry of Entrepreneurship Development and Cooperatives, about 90% of enterprises in Malaysia are SMEs. All parties must attach importance to this lifeline and support it so that the future national economy could well be sustained.