Small and medium-sized enterprises (SMEs) are appealing to Putrajaya for aid ahead of a "total lockdown" next Tuesday in an effort to curb spiralling number of Covid-19 cases and deaths.
The Small and Medium Enterprises Association Malaysia (Samenta) urged Putrajaya to urgently put together an aid package as many firms are on the brink of running out of funds.
"While we await the full standard operating procedures, we urge the government to quickly put in place urgent assistance for our SMEs.
"Specifically, we are hopeful that the wage subsidy can be continued and extended to the end of 2021, an automatic interest-free moratorium on all bank loans, and a reduction in utility charges for all businesses.
"Many of our SMEs have run out of reserves. Some have reported that they are owing landlords and suppliers for months.
"They were hopeful that they can still deliver on some pending orders to recover some funds to pay these. The total lockdown will make it difficult, if not impossible to do so," said Samenta's policy and government studies chairperson William Ng.
The "total lockdown" announced last night will be similar to the first movement control order (MCO 1.0) implemented in March last year that saw many social and economic sectors shut down except for essential services.
It came less than a week after Prime Minister Muhyiddin Yassin's interview on national television where he explained at length why MCO 1.0 cannot be implemented again as it could cause economic collapse.
He also said that the government didn't have enough money anymore to provide wide-ranging aid as it did when MCO 1.0 was implemented.
On the night of Muhyiddin's interview, the number of Covid-19 active cases was 57,022. It added more than a quarter of new active cases since, putting the total at 72,823.
A total of 353 people have died from Covid-19 in the first five days of this week.
Ng said SMEs have supported the government throughout the pandemic including trying to prevent mass lay-offs.
"SMEs have by and large kept all our staff; even as larger companies have retrenched staff.
"When the government urged us to help with the vaccination programme, many SMEs have encouraged their employees to sign up for the programme. At this critical juncture, we ask that the government consider the plight of our SMEs and the millions of Malaysians that we employ and provide urgent financial assistance to our SMEs," he said.
Invoke emergency powers
The current MCO 3.0 which came into force on May 12 and revised with slightly stricter rules on May 25 allows most economic sectors to operate.
The "total lockdown" will take effect for about two weeks from June 1 to 14.
Meanwhile, Pakatan Harapan Youth chief Shazni Munir Mohd Ithnin also called on Putrajaya to provide aid to vulnerable groups during the total lockdown.
"Without an aid mechanism such as loan moratorium and cash aid such as those during MCO 1.0, people who have to stay home won't have money for essential goods or to meet their monthly commitments," he told Malaysiakini.
Similar calls were also made by PKR Youth chief Akmal Nasir and Umno Youth chief Asyraf Wajdi Dusuki.
"Automatic loan moratorium, wage subsidy and cash aid to small businesses are needed," said Akmal.
Meanwhile, Asyraf said the government should invoke its emergency powers to compel banks to allow a moratorium on loans. - Mkini
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