MEF appeals to govt for MSME ‘survival’ package

The Malaysian Employers Federation (MEF) has urged the government to launch a survival and resilience package for micro, small, and medium enterprises (MSMEs) amid rising pressures. MEF president Syed Hussain Syed Husman highlighted the continuing challenges MSMEs face, including high operating and labor costs, financing constraints, weaker cash flows, supply chain disruptions, regulatory requirements, and intense competition.

While acknowledging the government's existing assistance through banks, Syed Hussain expressed concern over the speed and adequacy of the aid. He emphasized that if the assistance is received late, it may no longer be helpful, as the business may have already accumulated arrears, lost employees, customers, or ceased operations. Syed Hussain proposed that the assistance package include temporary tax rebates, reduced tax liabilities, enhanced tax deductions for qualifying MSMEs, and faster, simpler access to financing with streamlined applications, quicker approval, and practical assessment criteria.

He also suggested that credit guarantees be strengthened to enable banks to support viable MSMEs without sufficient collateral.