MEF appeals to govt for MSME ‘survival’ package

The Malaysian Employers Federation (MEF) has urged the government to introduce a survival package specifically for micro, small and medium enterprises (MSMEs). MEF president Syed Hussain Syed Husman outlined the ongoing challenges MSMEs face, including soaring operating and labor costs, difficulties accessing financing, dwindling cash flows, disruptions in supply chains, complex regulations, and fierce market competition.

While acknowledging the government's assistance through banks, Syed Hussain expressed concerns over the tardiness and inadequate scale of aid. He emphasized that delayed financial support could prove detrimental to businesses already grappling with arrears, staff layoffs, lost clientele, or closure. Syed Hussain proposed a swift, accessible, and affordable assistance package tailored to the unique circumstances of MSMEs rather than entailing cumbersome administrative procedures.

This package could encompass temporary tax rebates, diminished tax liabilities, or heightened tax deductions for qualifying MSMEs under pressure. Furthermore, Syed Hussain recommended expediting and simplifying the process for obtaining financing, coupled with more manageable application processes, quicker approvals, and practical evaluation criteria.

Additionally, the proposal includes expanding government-backed credit guarantees to facilitate banks in supporting viable MSMEs, even those lacking conventional collateral.