MEDAC: MSME sector on brink of collapse if curbs continue

Entrepreneur Development and Cooperatives Minister, Datuk Seri Dr Wan Junaidi Tuanku Jaafar, (pic) said the failure of these MSME businesses due to the prolonged restriction will create a domino effect, hitting the societies hard at the core, leading to a more serious social and economic impact.

KUALA LUMPUR: The micro and small and medium enterprises (MSME), which account for 40% of the country’s GDP, is on the brink of collapse if the restrictions on business operations continue indefinitely.

The Ministry of Entrepreneur Development and Cooperatives (MEDAC) said on Wednesday its recent survey estimated 580,000 businesses, or 49% of the MSME sector, are at risk of failing by October, if they are not allowed to open up their operations by then.