A coalition of organisations representing SMEs said the government must impose another round of loan moratorium in view of the third round of movement control order (MCO).
In a statement, Industries Unite warned that many businesses had already exhausted their reserves due to previous movement restriction rules.
The coalition said although most businesses are allowed to open during the MCO period, general restriction of movements will affect all businesses.
"It is imperative that a loan moratorium is put in place. During the second MCO, no moratorium was announced. It was said banks were under strain.
"The moratorium can be on a cost of funds basis. This is a must this time as most businesses have exhausted their reserves and cannot meet financial obligations," said the coalition.
Industries Unite claims to represent 110 trade associations and chamber of commerce. Malaysiakini is attempting to verify this claim.
Checks with some of the trade association leaders described Industries Unite as a loose coalition where they have no direct input.
Industries Unite also urged the government to provide more financial aid for SMEs and proposed a six-month tax holiday for industries that are badly affected.
"We need a clear path forward to be shown by the government. What is their plan to revive the economy? To inject confidence in the economy. Currently, confidence and morale among people are low.
"The sectors that are closed represent only approximately 20 percent of the Covid-19 clusters. Factories, among others, remain open. Our members fail to see the logic," said the coalition.
Currently, the MCO is only in place in the Klang Valley, Kelantan and certain parts of Perak and Kedah.
MCO rules prevent inter-district travel, outdoor exercise, social events, dining-in and visits to the cinema, among others. - Mkini
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