KUALA LUMPUR: The Malaysian Employers Federation (MEF) has urged the government to roll out an immediate support package for micro, small, and medium enterprises (MSMEs) struggling with surging operational costs and tight cash flows.
In a statement on Tuesday (Aug 11), MEF President Datuk Dr Syed Hussain Syed Husman warned that delayed assistance could lead to widespread business closures and retrenchments.
While welcoming existing government initiatives, including over RM5bil in microfinancing facilities, Syed Hussain emphasised that funding must reach businesses faster without heavy administrative delays.
“When an MSME closes, we do not lose only one business but potentially lose jobs, suppliers, customers, local economic activity and an important part of Malaysia’s entrepreneurial ecosystem," he said.
Syed Hussain said Malaysia should not hesitate to consider targeted fiscal measures when MSMEs are under pressure.
To safeguard the sector, MEF proposed a multi-pronged "MSME Survival and Resilience Package". The proposed package includes temporary tax relief, streamlined financing approvals, and a shift toward cash-flow-based lending over conventional collateral requirements. It also calls for expanded credit guarantees, reduced regulatory compliance fees, prompt payment terms from government-linked entities, and targeted incentives for employee retention.
"Helping viable MSMEs survive is a way of protecting workers because these businesses provide employment to millions of Malaysians and support extensive domestic supply chains.
"Government support should encourage businesses to improve productivity, digitalise, adopt technology, develop skills and become competitive," he said.
Syed Hussain also urged agencies to measure the success of aid programmes by business survival rates and retained jobs, rather than the total size of financial allocations announced.
