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, says the Ministry of Entrepreneur and Cooperative Development (MEDAC).
As such, his minister, Datuk Seri, Dr. Wan Junaidi Tuanku Jaafar, says the ministry will continue to take 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 ‘MCO.
Earlier, the government had allocated RM340bil to various economic stimulus packages to help cushion the impact of the MCO.
Meanwhile, Wan Junaidi says 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 says the current situation could contribute to the loss of employment of more than three million Malaysians.
“Micro and informal companies are the most affected, as their products and services are in non-essential sectors and have no savings or solid 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.” , add.
Wan Junaidi says a MEDAC survey of 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 says. The survey also reveals that private sector workers are at greater risk of being reduced, according to the minister.
“In addition, more than 50% of the B40 group and almost 50% of the M40 group have faced revenue reductions of between 10% and 30%, while 30% of the T20 group have seen their revenues reduced by more than 50% due to the implementation of the MCO, ”says Bernama