CORONAVIRUS | The government must strengthen jobs protection, expand financing options and offer training/retraining in the Small and Medium Enterprise (SME) aid package expected to be announced next week, urged PKR treasurer-general Lee Chean Chung.
The Semambu assemblyperson (photo, above) today said that the expected announcement should include expanding the wage subsidy programme form the current RM600-for-three-month package to a bigger quantum and for a longer period.
He said that this is important as the government’s recently announced RM250 billion stimulus package to help Malaysians cope with the Covid-19 pandemic was largely about direct handouts to the people, with insufficient attention to jobs protection, financing options and training/retraining needs.
Lee said this is important as SMEs comprise 98 percent of corporations in the country, with 65 percent employment and contribute 38 percent of Malaysia’s gross domestic product (GDP), and it is predicted that 50 percent of SMEs face the risk of being shuttered that could result in four million people losing their jobs.
“Protection of jobs are more important than giving handouts. Jobs are the result of capital formation and important input in economic activities. If jobs are not protected, especially in the SME sector, it will destroy hundreds of thousands of enterprises and millions of ordinary people losing their jobs.
It will give a long and catastrophic impact on our nation’s competitiveness and economic resilience,” he said in a media statement today.
Lee said that the upcoming announcement of the aid package for SMEs must include enlarging and increasing ease of access to financing options.
He noted that the current relief is largely for property and hire-purchase financing and has not covered the more important financing for SMEs such as inventory, pre-delivery and overseas capital financing.
“I am intrigued that SME Bank, Exim Bank, MIDF (Malaysian Industrial Development Financing Bhd) and other state-own financial institutions have not been mobilised yet for this purpose. Is it not their mission to assist the sector when it is needed?” he asked.
Lee also said that the upcoming announcement should be used by the government to aggressively step in to provide direction and sufficient resources for upskilling and training in sectors most relevant in the post-Covid-19 world.
He expressed surprise at the Human Resources Ministry keeping mum on this until today.
“As much as we do not want anyone to be left behind in a time of crisis, we also must prepare our people so that they are not left behind in a time of recovery.
“More importantly, there is a thin line between being responsible and being populist. Helping SMEs are not helping the towkays as some might perceive, but it is protecting jobs for our neighbours and ordinary people,” Lee said.
Meanwhile, in a media statement today, Padungan assemblyperson Wong King Wei echoed similar concerns, pointing out that not only were SMEs left out of the RM250 billion Prihatin Rakyat Economic Stimulus Package, but their situation was aggravated by other assistance provided by the government.
The DAP lawmaker said employers are prohibited from imposing unpaid leave on employees but instead, are expected to pay full salaries to their employees while most of these employees received financial assistance under the B40 and M40 group.
"Under the movement control O]order (MCO), the majority of businesses are rendered to almost zero revenue, and many of these businesses are getting 80 percent to 90 percent lower revenue," he said.
Wong pointed out that while SMEs generated zero revenue, they have been asked to assist the government to maintain the income of employees.
"Now, who is going to help the employers then?” he asked.
Wong also urged the Sarawak government, with its reserve fund of RM31 billion, to reach out to SMEs in the state.
"It is the right time to use part of the fund. The reserve fund is meant for emergency use and the common benefit Sarawakians.
"We, DAP Sarawak, have proposed that the state government bear 50 percent of the employees' salary for six months, to help, the SMEs in the state to wade through this difficult time and to revive businesses," he said, stressing that this would ensure the sustainability of the state's economy.
On April 2, Entrepreneur and Cooperative Development Minister Wan Junaidi Tuanku Jaafar was reported saying that Prime Minister Muhyiddin Yassin would announce an improved aid package for SMEs after ministerial-level discussions were brought to the Economic Action Council. - Mkini
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