KUALA LUMPUR: More than 90% of micro, small, medium and informal enterprises would be risking business closure if the Movement Control Order (MCO) continues to be implemented, said the Ministry of Development and Entrepreneurial Cooperatives ( MEDAC).
Its minister, Dr. Datuk Seri, Wan Junaidi Tuanku Jaafar, said as such that the ministry will continue to undertake intervention measures under the Entrepreneur and Cooperative Recovery Plan, and will offer funding assistance and a specific moratorium to help entrepreneurs cope with the impact of the MCO.
Earlier, the government had allocated 3 billion RM to various economic stimulus packages to help cushion the impact of the MCO.
Meanwhile, Wan Junaidi said the findings of two online surveys conducted in March 2021 were very worrying.
“Fifty-four percent of the 3,855 respondents, especially micro-enterprises, said they can only survive for three to six months.
“Meanwhile, 72% of entrepreneurs expected companies to continue to suffer losses,” he told an online press conference on the findings of the research report “Impact of the Implementation of MCO on Entrepreneurs in Malaysia”.
The minister said the current situation could contribute to the loss of employment of more than three million Malaysians.
“Micro and informal businesses are the hardest hit, as their products and services are in non-essential sectors and have no solid savings or cash flows.
“As such, it is important to ensure that the right kind of assistance is given to help micro and informal entrepreneurs and the PEMERKASA Plus initiative is expected to be able to support the resilience of this group during closure.” , added.
Wan Junaidi said a survey conducted by MEDAC with 2,888 consumers found that MCO has a negative impact on people’s lives.
“The B40 group has more financial repercussions, while the M40 and T20 groups had more repercussions for social issues,” he said.
The survey also revealed that private sector workers are at greater risk of being reduced, the minister said.
“In addition, more than 50 per cent of the B40 group and almost 50 per cent of the M40 group have faced revenue reductions of between 10 and 30 per cent, while 30 per cent of the T20 group have seen reductions its revenue by more than 50% due to the implementation of the MCO, ”he added. – Bernama