SMEs moot turn-based business days

Putrajaya has been urged to consider a turn-based system that would allow small and medium enterprises (SME) to conduct their businesses during the movement control order (MCO) period.

Speaking to Malaysiakini, SME Association president Michael Kang said this would at least allow a number of businesses to operate on a certain day of the week.

"Maybe it can be a rotational system. Businesses will have income and cash flow.

"For instance, if there are 5,000 businesses in a given area, perhaps 1,000 are allowed to operate on Monday, another 1,000 on Tuesday and so on.

"This is a way to create work and trade, where income can be created. This will help them," Kang said.

The MCO, which began on March 18, has caused most SMEs to shutter their businesses as part of the government's attempt to restrict movements.

The vast majority of jobs in Malaysia are in the SME sector, many of which are suffering because their income stream has been cut off.

Although the MCO is slated to end on April 14, there are signs that it will likely be extended.

Putrajaya has since come up with an RM10 billion stimulus package to help subsidise wages, waive rental and provide cheap loans for SMEs.

Kang (photo, above) said the package was "very good" because it looked out for both employers and employees.

"We have to look after the micro-SMEs because they are facing a lot of problems," he said, adding that the micro-SME sector amounted to 76 percent of total SMEs.

"Right now, all micro-SMEs have no income. They don't have money for food. Luckily, they have support from the government."

In welcoming the aid promised to micro-SMEs, Tunas Usahawan Nasional president Amir Hakimin Che Razali said he hoped the government would provide more clarity on the process of applying for the RM3,000 grant.

"Apart from having to be registered with the Inland Revenue Board (IRB), a lot of entrepreneurs don't understand what constitutes as 'micro-SME'.

"I suggest that the IRB issues a FAQ to make it clear," Amir Hakimin said. - Mkini