For every one business that shuts down, 18 new ones appear

  • Nation
  • Wednesday, 29 Jul 2020

Datuk Rosol Wahid. -filepic

KUALA LUMPUR: Every time a company closes, 18 new businesses opened between April 1 and July 19 this year, the Dewan Rakyat was told.

Deputy Domestic Trade and Consumer Affairs Minister Datuk Rosol Wahid said a total of 4,542 served notice to shut down their companies, while a total of 82,555 applied to register new businesses with the Companies Commission of Malaysia (SSM) under the Registration of Businesses Act 1956 between April 1 and July 19 this year.

"Statistics have shown that the number of new business registrations are far more than those that applied to terminate their business," he told Tan Kok Wai (PH-Cheras) during Question Time.

Tan had asked the ministry to state the number of businesses that shut down between April and July this year.

According to Rosol, a total of 278 companies closed down their businesses compared to 1,854 that registered to open new companies in April.

In May, a total of 1,565 companies shut down, while 10,936 applied to open businesses.

In June, a total of 1,592 closed shop, while 39,931 wanted to register to set up new businesses.

In July, 1,107 closed down, while 29,834 applied to open new companies.

Rosol explained that it was normal for operators to shut down their businesses when the global economic outlook was gloomy and filled with uncertainties.

"Many of those who were retrenched registered to open up new businesses.

"They are forced to find other options in order to cope with the current standard of living," he said.

Asked if the majority of the businesses involved were online companies, Rosol said that in general these businesses were involved in the e-commerce sector.

"This is because physical shops are not allowed to open during the movement control order (MCO) period," he told Datuk Seri Ahmad Maslan (BN-Pontian).

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


55% readers found this article insightful

Across the site