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1,000 companies lose RM300mil to Penang floods


FMM Penang Branch chairman Datuk Dr Ooi Eng Hock (centre) with committee member SN Lee (left). - The Star filepic

FMM Penang Branch chairman Datuk Dr Ooi Eng Hock (centre) with committee member SN Lee (left). - The Star filepic

GEORGE TOWN: Various industry players in Penang are staring at losses up to RM300mil after their factories were inundated by floodwaters over the weekend.

Some have even declared a “total loss” and will have to start anew while some may need to fork out a big sum to continue their operations.

The Federation of Malaysian Manufacturers Penang, which represented over 350 companies and manufacturers in the state, said the losses were due to a drop in the workforce, delayed logistics and damage to properties.

Chairman Datuk Dr Ooi Eng Hock estimated losses at between RM200mil and RM300mil, involving about 1,000 companies, a majority of which were small and medium enterprises (SMEs) in the manufacturing and services sector.

He told Bernama that the majority of them stopped operations for several days to clean up their premises.

However, Ooi lauded the federal government for acting swiftly by allocating RM500mil as disaster relief loan for companies affected by the floods.

He said SME Corp had also set up a disaster grant to allow these companies to apply for a one-off RM20,000 grant to help them start anew.

“We are grateful to the federal government for the disaster relief facility where applicants can apply up to RM500,000 at 2.2% interest per annum,” he said.

The floods on Sunday crippled many parts of Penang as roads were inundated, trees uprooted and properties damaged. The floods claimed seven lives and over 3,700 people had to be evacuated. — Bernama

Corporate News , Penang , Flood

   

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