CORONAVIRUS | Several DAP MPs have questioned the new government’s delay in announcing its refined stimulus package aimed at helping small and medium-sized enterprises (SMEs) deal with the Covid-19 pandemic.
Iskandar Puteri MP Lim Kit Siang it was important for the government to “learn from the best practices – both public health and economic – of other countries in combating the invisible global war” and present a package that can “rescue” SMEs in Malaysia.
“The Malaysian Trades Union Congress (MTUC) statement yesterday calling on Putrajaya to ensure that workers’ interests are protected as part of a pivotal condition for SMEs to obtain government assistance raises the question why the government is so slow and tardy in presenting a comprehensive package to rescue SMEs in the Covid-19 pandemic economics when compared to other countries like the UK, Germany, France, Denmark, Australia and Singapore?
“The Malaysian Trades Union Congress (MTUC) statement yesterday calling on Putrajaya to ensure that workers’ interests are protected as part of a pivotal condition for SMEs to obtain government assistance raises the question why the government is so slow and tardy in presenting a comprehensive package to rescue SMEs in the Covid-19 pandemic economics when compared to other countries like the UK, Germany, France, Denmark, Australia and Singapore?
“It could be argued that in these extraordinary times of the Covid-19 pandemic when there is a virtual lockdown of economic activities, the failure to quickly and nimbly address medical and economic problems is a form of irresponsibility and negligence,” the DAP veteran politician said in a statement today.
He called on Prime Minister Muhyiddin Yassin to be “more sensitive” to the plight of the vulnerable groups, such as those rendered unable to work due to the movement control order (MCO) which ordered a partial shutdown of all non-essential services and businesses.
Muhyiddin, he added, should also explain why the government was holding back from holding an emergency meeting of Parliament, even a virtual one, to debate the Covid-19s pandemic.
Lim was citing a statement by MTUC yesterday that called on the government to ensure the new stimulus package includes conditions and provisions to safeguard the welfare of employees - to prevent employers from laying off workers or cutting their wages.
This comes as Finance Minister Tengku Zafrul Tengku Abdul Aziz said his ministry was in the midst of refining a special stimulus package for SMEs to ease their current difficulties, which is expected to be announced this week pending cabinet approval.
Muhyiddin, he added, should also explain why the government was holding back from holding an emergency meeting of Parliament, even a virtual one, to debate the Covid-19s pandemic.
Lim was citing a statement by MTUC yesterday that called on the government to ensure the new stimulus package includes conditions and provisions to safeguard the welfare of employees - to prevent employers from laying off workers or cutting their wages.
This comes as Finance Minister Tengku Zafrul Tengku Abdul Aziz said his ministry was in the midst of refining a special stimulus package for SMEs to ease their current difficulties, which is expected to be announced this week pending cabinet approval.
However, in a latest development, Muhyiddin is expected to announce additional stimulus measures for SMEs later today.
Lim, meanwhile said: “The Covid-19 pandemic is not just a health crisis – it is an existential economic crisis and policymakers must adjust their approach on a daily basis as the increasing severity of the health pandemic and damage to the economy unfolds.
“Tengku Zafrul and other policy-makers in the government should be motivated by the ‘Act Fast and Do Whatever It Takes’ spirit to address the economic problems created by the Covid-19 pandemic.”
On March 27, Muhyiddin’s Perikatan Nasional government announced an RM250 billion Prihatin economic stimulus package, which included RM100 billion to support the business community, including SMEs.
“Tengku Zafrul and other policy-makers in the government should be motivated by the ‘Act Fast and Do Whatever It Takes’ spirit to address the economic problems created by the Covid-19 pandemic.”
On March 27, Muhyiddin’s Perikatan Nasional government announced an RM250 billion Prihatin economic stimulus package, which included RM100 billion to support the business community, including SMEs.
It also included a three-month, RM5.9 billion salary subsidy scheme to prevent loss of jobs and earnings in the wake of the Covid-19 outbreak.
The scheme applies to all workers earning below RM4,000 and employers experiencing loss of income of more than 50 percent since Jan 1, 2020.
The scheme applies to all workers earning below RM4,000 and employers experiencing loss of income of more than 50 percent since Jan 1, 2020.
Previously, a sum of RM20 billion has already been allocated for the stimulus package announced on Feb 27.
Meanwhile, in a separate statement, DAP’s Bangi MP Ong Kiang Ming (below) claimed assistance to address the specific needs of the SMEs in Malaysia has not been forthcoming since the initial announcement in February.
Meanwhile, in a separate statement, DAP’s Bangi MP Ong Kiang Ming (below) claimed assistance to address the specific needs of the SMEs in Malaysia has not been forthcoming since the initial announcement in February.
He called on the government to help SMEs, address the challenges of covering overheads as a result of the MCO, facing an uncertain business environment in 2020 after the lifting of the MCO and policy uncertainty including over the possible extension of the MCO.
“Immediately after the announcement of the Prihatin economic stimulus package by Muhyiddin on March 27, there was an outcry among the SMEs that they have been left out from this package. I have been waiting for more than a week to see if the government would listen to the cries from the SMEs.
“But despite meetings with some of the key Economic Affairs Minister in the Prime Minister’s Department Mustapa Muhammed and Transport Minister Wee Ka Siong, assistance to address the specific needs of the SMEs in Malaysia has not been forthcoming,” said Ong.
In his statement, the former international trade and industry deputy minister included several examples where SMEs were left out.
These include an owner of a small restaurant chain at malls who has 30 staff preparing and serving food, earning around RM3,000 monthly wage, including allowances and overtime.
“This works out to an overhead of approximately RM100,000 per month including EPF and Socso payments. The owner chooses not to have delivery services because she does not want her staff to travel to work and risk getting infected. She still has to pay a monthly rental of RM5,000 per outlet since the rental was not waived by shopping malls which she operates in.
“Immediately after the announcement of the Prihatin economic stimulus package by Muhyiddin on March 27, there was an outcry among the SMEs that they have been left out from this package. I have been waiting for more than a week to see if the government would listen to the cries from the SMEs.
“But despite meetings with some of the key Economic Affairs Minister in the Prime Minister’s Department Mustapa Muhammed and Transport Minister Wee Ka Siong, assistance to address the specific needs of the SMEs in Malaysia has not been forthcoming,” said Ong.
In his statement, the former international trade and industry deputy minister included several examples where SMEs were left out.
These include an owner of a small restaurant chain at malls who has 30 staff preparing and serving food, earning around RM3,000 monthly wage, including allowances and overtime.
“This works out to an overhead of approximately RM100,000 per month including EPF and Socso payments. The owner chooses not to have delivery services because she does not want her staff to travel to work and risk getting infected. She still has to pay a monthly rental of RM5,000 per outlet since the rental was not waived by shopping malls which she operates in.
“She will not likely be able to take advantage of the RM600 a month subsidy from the government because she has to conserve cash flow and close one outlet and retrench 10 staff. She has to incur overhead cost of at least RM100,000 during the MCO without any revenue.”
Other examples include - small manufacturer and distributor of non-essential items; small hotel owner and operator; retailer in a small town; long-distance bus operator; gym owner and operator; event organiser; mid-sized law firm and printer in East Malaysia.
“These examples are not meant to be comprehensive. They are meant to illustrate the challenges which SMEs across the service and manufacturing sectors are facing now because of the direct and indirect impact of the Covid-19 virus which has been exacerbated by the MCO.
“...Will the government hear their cries this week, the third week of the MCO or will their cries continue to fall on deaf ears?” - Mkini
“These examples are not meant to be comprehensive. They are meant to illustrate the challenges which SMEs across the service and manufacturing sectors are facing now because of the direct and indirect impact of the Covid-19 virus which has been exacerbated by the MCO.
“...Will the government hear their cries this week, the third week of the MCO or will their cries continue to fall on deaf ears?” - Mkini
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