Chamber of commerce says SMEs need govt help, warns of collapse, unemployment

PETALING JAYA: The Malaysia-China Chamber of Commerce (MCCC) has urged the government to step up efforts to help small and medium enterprises (SMEs) following the announcement of a new stimulus package to help Malaysians weather the impact of Covid-19.

MCCC said the government should consider the financial problems that SMEs faced, especially cash flow, and provide comprehensive support through measures such as tax cuts, interest rates and loan facilities.

It said this would prevent the collapse of SMEs, as well as protect employment opportunities.

“The 28-day MCO no doubt will help to prevent the spread of the pandemic, but at the same time, the suspension of business and industrial operations has also placed more pressure on SMEs.

“It is hoped that the government can set up an unemployment fund to assist employees who may have been laid off after the MCO, in addition to applying for unemployment benefits from Socso, ” it said in a statement on Saturday (March 28).

MCCC also suggested that the government give direct assistance to SMEs during the MCO period, by helping them to "pay at least 25% of their employees’ salaries".

It added that half of its members who were surveyed said although the economic stimulus package was helpful, it would not obtain timely tangible results.

“SMEs need more government assistance to survive the financial difficulties –closing down of companies, laying off workers and the lost of jobs scenario may probably be happening in May.

“The government must prepare to face these potential problems now and put in place effective measures to prevent the collapse of SMEs, which would give rise to a wide range of problems, ” it said.

MCCC also suggested that local governments also provide assistance to various trades and industries.

“It is urgent for the Prime Minister to give clear instructions and for local governments to take the initiative to help SMEs cope with the hard times.

“MCCC calls on the government to set up a special task force to coordinate the work of various departments and to focus on supporting the continuing operations of SMEs, ” it said.