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KUALA LUMPUR: Assistance provided through the Prihatin Special Grant or Geran Khas Prihatin (GKP) shows the government’s concern for the micro and medium enterprises (MSMEs) that are the foundation of the country’s economy.
GKP, which aims to help MSMEs that are affected by the Covid-19 pandemic, was introduced during the first round of the Movement Control Order (MCO) last year; and to date, donations have helped 900,000 MSMEs with a total allocation of RM3.58 billion.
The aid is expected to ease the financial burden on small businesses, especially in areas related to working capital such as restocking, purchasing raw materials and increasing cash reserves.
One-time financial assistance started with GKP 1.0 under the Prihatin Rakyat Economic Stimulus Package (Prihatin), followed by GKP 2.0, GKP Plus under the Economic Protection Assistance Package and Malaysia Rakyat (Permai) and GKP 3.0 within the framework of the strategic program to empower people. and Economy (Pemerkasa).
Eligible MSMEs received a one-time payment of RM3,000 each under GKP 1.0 and GKP 2.0.
For GKP Plus, all GKP 1.0 and GKP 2.0 recipients in 12 states under the MCO that was enforced in January and February of this year will get RM1,000, while MSMEs in non-MCO states will get RM500.
Meanwhile, MSMEs that have not previously received assistance will get RM1,000 under GKP 3.0.
Stop measure
Sunway University economics professor Dr. Yeah Kim Leng said the nominal attendance is a sign that the government is steadfast in continuing to support MSMEs during the recovery phase in 2021, following the various financial aids provided in previous Covid-19 packages last year.
The assistance is a much-needed stopgap measure, as a full recovery for MSMEs, as well as small and medium-sized enterprises (SMEs) will only happen when both the national and global economies fully recover, he said.
Dr Mohammad Tawfik Yaakub, Senior Lecturer in the Faculty of Economics and Management at the University of Malaya, said that while GKP’s assistance is considered small, the continued extension of assistance is having an impact on the country’s recovery chain. , albeit gradually.
“I am sure that GKP’s assistance really helps MSMEs and prevents their debts from increasing as they seek additional capital.
“All sectors face a debt problem and if the government had not given the aid, SMEs would have been trapped even more in the economic crisis that is affecting not only the country but the whole world,” he said.
Therefore, he added, the government must continue to assist and empower SMEs in a more aggressive way in the long term.
The president of the National Foundation of Entrepreneurs, Datuk Seri Megat D. Shahriman Zaharudin, said it would be better if this one-time aid could be provided on an ongoing basis until the COVID-19 pandemic is over or for at least one more year.
“Perhaps the government can help with 40 percent of the operating cost to ensure that MSMEs, whether in urban or rural areas, can sustain their respective businesses,” he added.
Change is constant
Bank Islam Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid said that while the assistance provided by the government is timely, it is a relief in the short term.
“The business landscape continues to change rapidly with or without Covid-19. Therefore, companies must be open to new solutions and be able to understand the needs and desires of their customers to be successful in the long term, “he said.
Therefore, companies need to think about their business strategy and how they can maintain their current business model.
“If there is a gap, especially in the skill and knowledge set, attending the relevant course is the sensible thing to do,” he said. – Named
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