Self-employed begging for help

 

From Suzanne Lee

The prime minister had announced the Permai assistance package to help us navigate through the second movement control order (MCO 2.0). I was desperately waiting for the announcement because as someone who is directly impacted by this pandemic like many others, this could be the lifeline to continue surviving.

However, as I was listening in, I was completely disappointed with the initiatives offered, especially for those who are self-employed. I was really waiting for the automatic loan moratorium packages and at least three months’ worth of cash assistance for families and individuals impacted by the pandemic and not just one-off.

The self-employed are now the second biggest group in the Malaysian workforce.

In 2018, there were 2.86 million own-account workers, out of a total of 14.8 million working adults. Based on the statistics from the Statistics Department, during the first MCO (MCO 1.0), nearly 50% of the self-employed lost their jobs, while 90% were still working with a lower salary.

These figures can be used as a benchmark of the coming situation in Malaysia.

Unfortunately, the situation now is much worse with most having depleted their savings and accumulated more debt. With the overall lower consumer spending, this can lead to a major disaster for the self-employed.

As someone who works in the education sector specialising in preschool, I am suffering and have utilised a huge portion of my savings and I’m not sure how much longer I can depend on it.

The government allowed registered childcare centres to operate with the standard operating procedures in place in the hope that this will encourage parents to send their children to such centres.

However, the opposite is happening where parents choose not to send their children as they fear for their safety, and how can you blame them? The reality is bleak with cases increasing day by day. Who would risk the safety of their child?

Besides that, some of them are impacted financially, having lost their job or experiencing a salary cut. Hence, education might not be a priority for now.

Based on my engagement with banks when applying for a moratorium, I was told I am only eligible for a loan reduction instead of a full moratorium because I belong to the self-employed segment.

Although I did not lose my job my income is heavily impacted, and with monthly expenses which I still have to pay, how can I still afford to pay the bank loans?

Why is there a distinction between salaried and self-employed?

This is one of the gaps in the targeted moratorium because it is a general rule that does not apply to all cases.

Why am I penalised from receiving the assistance just because I am self-employed? How can I pay my school rent, utilities, expenses, and teachers’ salaries on top of paying my bank loans?

Furthermore, most teachers have families to feed and the wage subsidy of RM600 is just not enough to cover their basic expenses.

The automatic loan moratorium was implemented by the government from March 2020 until September 2020 during MCO 1.0. After September, targeted repayment assistance was introduced.

However, the targeted assistance was implemented under the assumption that the economy will be functioning and this is clearly not the reality on the ground.

Look at us now in MCO 2.0, with the emergency and the slow-moving economy. Shouldn’t the government revise its options and revisit the automatic loan moratorium option?

Besides that, the banks are also not accommodating. Instead of providing solutions that will help the impacted customers, they just provide alternatives that will bring them profit in the long run. Many are charging their clients higher rates and longer tenure.

Based on the initiatives under Permai, the bus and taxi operators can enjoy a 12-month moratorium and lower monthly repayments. Why not provide it across all other important sectors too, such as education?

I am begging for the government to consider helping the people suffering in this pandemic by implementing effective incentives that will help us survive during these challenging times.

My suggestion is that the government implement the three-month automatic loan moratorium across all sectors and provide cash assistance for at least three months to those who are struggling, especially the B40 and M40 community.

I don’t think the government can look at this situation and just turn the other way until the pandemic is over when it comes to the survival of the people.

It’s clearly a question of whether the government is accountable enough to protect the people or will they just let them rot? Whatever decision the government chooses will have a significant impact on how voters will cast their ballots in future.

Suzanne Lee is an FMT reader.

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.