KUALA LUMPUR: A rental discount, payment moratorium and utility cost assistance will be implemented by Uda Holdings Bhd to help traders and micro, small and medium enterprises (MSME) affected by the global supply crisis.
Entrepreneur Development and Cooperatives Minister Steven Sim (pic), who disclosed this, said the ministry welcomed Prime Minister Datuk Seri Anwar Ibrahim’s proposal for Uda to reduce rental rates for business premises.
He said Uda took a holistic and prudent approach in assisting traders based in shopping complexes and commercial buildings under its ownership and supervision.
“The first initiative involves providing rental discounts of up to 20% with targeted implementation based on two categories, starting this May to December.
“This involves providing a 10% discount to all tenants and an additional 10% targeted at MSME entrepreneurs through the Uda Entrepreneur Incentive Programme,” he said in a statement yesterday.
Sim said Uda will impose a moratorium as a measure to support the cash flow of MSMEs through a flexible monthly rental payment plan.
“This includes allowing rent arrears of up to three months for affected tenants based on performance assessments and operational needs.
“Uda will also offer utility cost relief, which will indirectly reduce operations costs for MSMEs through the deferring of increases in complex operating service charges with Uda bearing the cost of these increases.
“Through these initiatives and assistance, Uda is expected to bear a cost of RM12.5mil,” he added.
On Tuesday, Anwar directed government agencies to reduce the rental rates for small businesses, mainly hawkers and petty traders, to ease rising cost pressures.
All local authorities across the country were also urged to take the same approach.
Anwar said this followed growing concerns over the financial strain faced by small-scale traders, many of whom operated from premises owned by local councils and government-linked agencies.
