SMEs: Financial aid and change in strategy needed

PETALING JAYA: As anxiety mounts over the possibility of the enhanced movement control order imposed on most of Selangor and parts of Kuala Lumpur being extended, business owners want the government to restrategise its present approach and provide more financial aid to small and medium enterprises (SMEs) nationwide.

Many business owners have pointed out that Covid-19 figures are still surging and that without financial aid from the government, many jobs are at risk if lockdowns continue until the end of the month.

Troopers chief executive officer Joshua Tan said if lockdowns were extended for another 14 days, the government should have a more targeted approach rather than enforcing blanket restrictions nationwide.He also said a blanket lockdown would affect the operations of many SMEs nationwide, including his company, which focuses on providing digital manpower solutions.

“We are now providing part-time volunteers to vaccination centres around the Klang Valley to help speed up vaccinations.

“It will be challenging moving forward, but we are glad that we can work with stakeholders in the private and public sectors to provide more opportunities to those who have lost their jobs,” he said.

Describing the situation on the ground as dire, he said the government must not neglect SMEs and financial assistance must be given.

“Many people aged 30 to 50 are losing jobs and even writing to us saying they need work to support their families,” Tan added.

Concert promoter Shiraz Projects CEO Shirazdeen Karim said the events and concerts industry had not been able to operate since the MCO was enforced in March last year.

“It’s disheartening when a majority of Covid-19 cases come from factories and workplaces, yet they are still allowed to operate.

“Our industry only contributed to 0.5% of total cases but we have been shut down entirely,” he said.

He said the government must lay out a clear plan on when the events and concerts industry could operate in future.

“The government needs to give us funding and assistance so that we can survive for the next six months at least,” Shirazdeen added.

Similar sentiments were expressed by 56-year-old Tan Kok Kee, who was supposed to start his courier service business last month but had to delay it multiple times due to the MCO enforced from May 3.

Despite not being able to operate his business in June, Tan still had to pay the rental for his shop, utilities and his helper’s salary.

If the lockdown was prolonged, Tan said he would probably have to wind down his business.

“This is just a small business. What about big businesses with heavy operating costs?” he said.

Rage Coffee owner Jevin Singh said the lockdown that began since May had proven to be ineffective in bringing down Covid-19 figures.

“Business owners or tenants who are renting stores should be protected,” he said, adding that the government should also introduce incentives for landlords to provide discounts to tenants.

Jevin said if this issue was not addressed, it could lead to larger economic divide and inequality, as only businesses with healthy balance sheets and assets would be able to ride out the pandemic storm.