Most entrepreneurs at risk if MCO continues

Entrepreneur Development and Cooperative (MEDAC).minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar the findings of two online survey conducted in March 2021 were very worrying.

MORE than 90% of micro, small, medium and informal enterprises would be risking business closure if the movement control order (MCO) continues to be implemented, says the Ministry of Entrepreneur Development and Cooperative (MEDAC).

As such, its minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar says the ministry will continue to undertake intervention measures under the Entrepreneur and Cooperative Recovery Plan, and offer financing assistance and targeted moratorium to help the entrepreneurs in facing the impact from the MCO.

Earlier, the government had allocated RM340bil under various economic stimulus packages to help cushion the impact from MCO.

Meanwhile, Wan Junaidi says the findings of two online survey conducted in March 2021 were very worrying.

“Fifty-four per cent of the 3,855 respondents, especially the micro-enterprises, stated that they can only survive for three to six months.

“Meanwhile, 72% of the entrepreneurs expected that businesses would continue to suffer losses, ” he told an online media conference on the findings from the ‘Impact of the Implementation of MCO on Entrepreneurs in Malaysia’ research report.

The minister says that the current situation may contribute to loss of employment for more than three million Malaysians.

“Micro and informal enterprises are the worst affected as their products and services are in the non-essential sectors and they do not have solid savings and cash flow.

“As such, it is important to ensure that the appropriate type of assistance is given to help micro and informal entrepreneurs, and the Pemerkasa Plus initiative is expected to be able to support the resilience of this group during the lockdown, ” he adds.

Wan Junaidi says a survey conducted by MEDAC involving 2,888 consumers found that the MCO has a negative impact on the people’s lives.

“The B40 group are more financially impacted, while the M40 and T20 groups were more impacted by social issues, ” he says. The survey also reveals that private sector workers face a higher risk of being retrenched, the minister says.

“Additionally, more than 50% of the B40 group and almost 50% of the M40 group have faced income reductions of between 10% and 30%, while 30% of the T20 group saw their incomes reduced by more than 50% due to the implementation of the MCO, ” he says. — Bernama