Retailers and manufacturers welcome govt help

Much-appreciated aid for manpower: In preparation for the revival of the economy, the government has allocated billions in funds to the ministry for various financial aid and training schemes as well as placement programmes for workers. — YAP CHEE HONG/The Star

PETALING JAYA: The Malaysia Retailers Association (MRA) welcomes the government initiatives to regenerate the economy and wants these to continue to further prop up the ailing retail industry.

“We are thankful that the government has opened most sectors and taken many precautionary steps with a detailed standard operating procedure.

“The Malaysian brick-and-mortar retailers are adversely affected as reflected in the retail sales growth rate of -20.2% for the first six months of 2020 compared to the same period a year ago, ” MRA said in a statement.

It urged the government to extend the suspension of contribution to the mandatory Human Resources Development Fund levy to June 30,2021; the exemption ended on Sept 15,2020.

“During this current conditional MCO period, the gathering of people for training and seminars is prohibited and therefore, companies are not able to utilise such funds, ” it added.

The association also expressed its appreciation to the government for the Wage Subsidy Programme and the extension of loan moratoriums and reopening of borders to a certain extent.

However, the reduction in electricity bills and a longer moratorium for all will be highly welcomed, MRA added.

The Federation of Malaysian Manufacturers (FMM) said the Wage Subsidy Programme under Budget 2021 targeted at retail and tourism sectors is a much-needed cash injection for the survival of businesses hardest hit by the Covid-19 pandemic.

FMM president Tan Sri Soh Thian Lai said that prior to the tabling of Budget 2021, businesses struggling financially had also received help from the government’s economic stimulus packages.

“The tourism and retail sectors are the worst impacted and most are on the verge of folding, ” he said.

“During the earlier phase of the movement control order, the businesses still had some financial reserves to wade through the pandemic. The government’s stimulus packages of Wage Subsidy Programme and the loan moratorium by banks did help to tide them over at that time.”

While he hailed the Wage Subsidy Programme under Budget 2021 that promises RM600 per employee for another three months, Soh feels that it would be better if the amount is increased to RM1,200 per employee and the period extended.

“We need liquidity to flow with each business having enough revenue, if not financial resources will dry up and businesses will close on a bigger scale by the first quarter of 2021, ” he said.

Soh urged the government to extend the current loan moratorium to more groups.

He also said the recent ruling that all employers advertised in the MyFutureJobs.com portal is a feasible move for companies in need of low-end foreign workers.

“For these workers, it is fine to ask companies to advertise their vacancies on the portal, ” he added.

He suggested that the Human Resources Ministry work with the Malaysian Investment Development Authority in filling vacancies for expatriates and specialists in companies with foreign direct investors.

In preparation for the revival of the economy, the government has allocated billions in funds to the ministry for various financial aids and training schemes as well as placement programmes.

The ministry has also introduced new rulings to cater to employers for the loss of foreign workers and retrenched employees.