KUALA LUMPUR: The Entrepreneur Development and Cooperatives Ministry has announced three initiatives to help micro, small and medium enterprises (MSMEs), including a moratorium and reducing rental.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong welcomed Prime Minister Datuk Seri Anwar Ibrahim's suggestion to Uda Holdings Bhd to reduce rental rates for business premises to help ease the burden on traders and entrepreneurs in the MSME sector affected by the global supply crisis.
He said Uda has taken a holistic approach to assist traders who conduct business in shopping complexes and commercial buildings under its ownership and supervision.
"Uda will be implementing three main initiatives to ease their burden.
"It will provide a rental discount of up to 20% with targeted implementation based on two implementation categories, namely providing 10% to all tenants and an additional 10% discount targeting MSMEs through the Uda Entrepreneur Incentive Programme starting from May until December this year (2026).
"Uda will also implement a moratorium as a measure to support the cash flow of MSMEs through a flexible monthly rent payment plan, including allowing rent arrears of up to three months for affected tenants based on performance assessments and operational needs," he said in a statement on Thursday (May 7).
Sim said Uda also offers Utility Cost Relief, which will indirectly reduce operations costs for MSMEs through the deferral of increases in complex operating service charges, adding that Uda will bear the cost of the increase.
"Through these initiatives and assistance, Uda is expected to bear a cost of RM12.5mil to ease the burden on MSME traders and entrepreneurs," he said.
Earlier this week, Anwar Ibrahim told local authorities and state governments to reduce rental rates for small businesses, particularly hawkers and petty traders, to ease rising cost pressures.
He said this follows the growing concerns over the financial strain faced by small-scale traders, many of whom operate from premises owned by local councils and government-linked agencies.
For further details, visit www.uda.com.my or follow Uda Holdings Berhad's social media accounts.
