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The government has subsidized about 30 percent of salary payments for small and medium-sized enterprises (SMEs) during the Movement Control Order (MCO) to avoid downsizing and reduce the number of people who retired.
Neil Foo, the Malaysian representative of the Asia-Pacific Small and Medium-Sized Economic Cooperation Forum (APEC SME Forum), said many SMEs had received aid from the government’s Prihatin Rakyat Economic Stimulus Package (Prihatin) which was unveiled. Recently.
“In addition to wage subsidies under the Prihatin package, various measures, such as a six-month delay in car and home loan payments, have brought some relief to SMEs,” he said at a special web conference organized by the Forum. China World Economic, based in China. (WCEF) today.
On April 6, Prime Minister Muhyiddin Yassin announced an additional stimulus package (known as Prihatin Plus) worth RM10 billion to help SMEs overcome the Covid-19 pandemic, in addition to the Prihatin package RM250 billion presented on March 27.
Foo said around 70 percent of SMEs in Malaysia operate their businesses with less than three months of cash flow.
“If the MCO ends (on May 12), they will need another month to prepare to maintain their business,” he said.
However, with the assistance provided by the government under the Prihatin package, Foo was optimistic that Malaysia’s economic activities would recover, particularly in the second half of the year.
“When the government gives money to the people, they will start spending. And when they spend, the economy will improve and this will help commercial operators, “he added.
Meanwhile, former Deputy Minister of Health Dr. Lee Boon Chye said that although Malaysia has managed to control the spread of Covid-19, things will not be the same after Covid-19.
Lee, who is also a Gopeng deputy, said the biggest challenge was still practicing social distancing and how to ensure that economic, sports, educational and other activities run smoothly, as people adapt to this “new culture” .
“But I think the Malays will do everything possible to ensure sustainable economic development,” he said. – Bernama
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