PETALING JAYA: The SME Association of Malaysia has urged the government to implement a six-month loan moratorium and roll out stronger emergency support measures, warning that businesses are under mounting pressure from global uncertainties.
Its president Dr Chin Chee Seong said micro, small and medium enterprises (MSMEs) are currently facing a "dangerous triple pressure" affecting their survival and sustainability.
"These pressures stem from geopolitical tensions, a highly volatile global trade environment and the lingering financial fragility of MSMEs after the pandemic," he said in a statement on Wednesday (March 17).
Chin noted that the conflict in the Middle East has heightened uncertainty over energy supply, shipping routes and logistics costs, with oil prices climbing above US$100 per barrel and adding further strain on businesses.
At the same time, shifting US tariff policies have created a more fluid and unpredictable trade landscape, complicating planning for exporters and supply chain players, he added.
He said MSMEs, which make up about 97% of business establishments in Malaysia, remain vulnerable after years of weak demand, rising costs and cash flow challenges.
"We support a temporary six-month moratorium or targeted repayment deferment for MSMEs facing sudden cash flow strain.
"This is necessary to preserve working capital, protect jobs and prevent unnecessary business closures," he said.
Among other proposals, Chin called for emergency financing under programmes linked to the Entrepreneur Development and Cooperatives Ministry to be expanded to at least RM500mil, from the current RM100mil, with faster approvals and simpler application processes.
He also urged greater access to affordable working capital, stronger government-backed loan guarantees and flexibility in restructuring loans without penalties.
"The government should not wait until defaults spread, layoffs rise and business closures accelerate before acting more decisively," he said, stressing that MSMEs remain the backbone of the economy.
