MEF urges govt to act faster before MSME cash crunch turns into job losses

The Malaysian Employers Federation (MEF) is urging the government to take swift action to support micro, small and medium enterprises (MSMEs) in the face of mounting challenges. MEF president Datuk Dr Syed Hussain Syed Husman has outlined a package of measures that the government should consider implementing promptly. These measures include targeted tax relief, easier access to financing, and a focus on cash-flow-based lending.

Syed Hussain emphasized that the government's MSME policy must prioritize employment and economic sustainability, as these businesses employ millions of Malaysians and support extensive domestic supply chains. He stressed that the goal is not to keep unproductive businesses afloat indefinitely, but to prevent permanent closures and job losses due to temporary cash-flow and cost pressures.

The MEF is willing to collaborate with relevant ministries, including the Ministry of Entrepreneur and Cooperative Development (KUSKOP), the Ministry of Finance (MoF), and Bank Negara Malaysia (BNM), to ensure that MSME assistance is practical, accessible, and responsive to real business conditions. The federation has already acknowledged the government's efforts in this area, but is calling for an intensified and more targeted approach to prevent situations where temporary business difficulties ultimately lead to permanent closures and job losses.