PETALING JAYA: Trader and padi farmer associations have welcomed the government’s plan to lower rental rates for small businesses operating in government-linked premises.
However, the associations said more still needs to be done to help these businesses survive the ongoing rise in operating costs driven by the global oil supply crisis.
Malaysian Federation of Hawkers and Traders Association president Datuk Seri Rosli Sulaiman said lower rental rates would significantly help small businesses maintain their current prices.
“Having a much lower rental rate lowers these small businesses’ operating costs as they typically only make small profit margins and are heavily affected by other rising costs as a result of the war,” he said.
Rosli added that the government should also consider increasing the current Budi 95 subsidised RON95 petrol limit for small traders and businesses.
“Many small businesses and hawkers use their own personal car for their business.
“The current 200-litre monthly limit is typically not enough for them, so even slightly increasing the limit to 250 litres for them would be really helpful,” he added.
Kuala Lumpur & Selangor Indian Chamber of Commerce & Industry president Nivas Ragavan said lower rental rates would benefit micro, small and medium enterprises (MSMEs) the most but would not be enough to completely offset rising costs.
“If possible, waiving the rental fee entirely for the next one or two months would be better to help these businesses accommodate the rise in costs of utility, transport and everything else temporarily,” he said.
He added that the e-invoicing compliance deadline for MSMEs should also be delayed until the ongoing uncertainty of the Middle East conflict subsides.
“The conflict is already giving these MSME owners a financial headache, so having to also begin the transition to e-invoicing is just unneeded pressure” he said.
Meanwhile, Malaysia Padi Farmers Brotherhood Association chairman Abdul Rashid Yob said the RM200 per hectare advance payment for padi farmers is a welcome move.
He said the incentive would help farmers manage ploughing costs ahead of the planting season, but stressed that it was not a long-term solution as expenses for machinery and diesel continue to rise.
“We thank the government, but this is not the real solution as ploughing costs can reach RM700 per hectare for one round, while two rounds can cost up to RM1,400.
“We farmers still have to bear most of the expenses ourselves,” he said, noting that over 80% of padi farming operations rely on diesel-powered machinery such as tractors and water pumps.
Abdul Rashid recommended that a seasonal subsidy card would help reduce costs and stabilise farmers’ income.
