Micro-enterprises need help

Enterprising: Workers at a micro-enterprise in Marang, Terengganu, preparing rempeyek (peanut and anchovy fritters) for sale. ­Micro-enterprises hit hard by the pandemic are in need of more support. — Bernama

TO curb the spread of Covid-19 over the past two years, the government imposed several policies, such as strict movement control orders, mass vaccination campaigns and comprehensive contact tracing. Despite these positive measures, the pandemic impacted Malaysia’s economy badly, especially affecting micro, small and medium enterprises (MSMEs).

Up to 2021, over 37,000 MSMEs had closed their businesses, and out of this total, 26,007 were micro- enterprises. MSMEs play a major role in the Malaysian economy. They account for nearly 40% of the country’s GDP and employ almost two-thirds of its workforce. And in the MSME category, micro-enterprises account for the largest share. According to the Department of Statistics Malaysia, micro-enterprises made up 78.6% of total MSME establishments in 2021.