Prime Minister of Malaysia, YAB Tan Sri Dato' Haji Muhyiddin Bin Haji Mohd. Yassin
Since the nationwide lockdown on 18th March 2020, a tremendous amount of effort by the Malaysian Government has been put into protecting the nation and preventing the spread of Covid-19. It is no doubt that Prime Minister YAB Tan Sri Dato' Haji Muhyiddin Bin Haji Mohd. Yassin and his ministries have been doing everything with the resources available for the betterment of the country. The COVID 19 Special Task Force Secretariat for SMEs, SMIs, NGOs, and Entrepreneurs has also been working closely with the Prime Minister’s office through the Economic Planning Unit (EPU) in efforts to prevent the economic downfall of the country.
However, during this time of crisis, banks are still pressuring SMEs. Therefore, the Secretariat has requested for the Government to reschedule and restructure the facilities and financial obligations that the SMEs have with the financial institutions. By doing this, it is possible for companies to be able to sustain their operations and the payrolls of their staff at the very least.
The effect Covid-19 has on the economy of Malaysia, SMEs might be forced to close down
According to an interview on the Sundaily, President of SME Association of Malaysia, Datuk Michael Kang said, "If the pandemic is not addressed soon, I would say easily 5% to 10% of SMEs could be forced to close for good. This is because they don’t have the financial capability to survive. If we are looking at 10%, then up to one million employees could be out of work. Most companies only have two months of reserves to cover their operational costs. We can expect to see this happening in the next six months”.
Employee realizing the closure of the company he works in
The COVID 19 Special Task Force Secretariat for SMEs, SMIs, NGOs, and Entrepreneurs asks that the Ministry of Finance and Bank Negara Malaysia direct the Development Financial Institutions and commercial banks to work together with the community through this time of crisis. As of now, the secretariat has started a petition on change.org, claiming more than 6,000 signatures, demanding the support of the Government.
The COVID 19 Special Task Force Secretariat for SMEs, SMIs, NGOs, and Entrepreneurs petition for 6 Months Blanket Moratorium On All Business & Personal Banking Facilities
In a press conference today (23rd March 2020), the Prime Minister of Malaysia, YAB Tan Sri Dato' Haji Muhyiddin Bin Haji Mohd. Yassin has proclaimed four initiatives to be carried out in hopes to lighten the financial burden that the Covid-19 outbreak has caused in Malaysia.
The Prime Minister announced that a potential 2nd stimulus package is to be revealed on 30th March 2020 along with the confirmation regarding the extension of the Movement Control Order (MCO). The COVID 19 Special Task Force Secretariat for SMEs, SMIs, NGOs, and Entrepreneurs hopes that some of the 10 pointers (www.kr8tifexpress.com/article/1292) requested to the government would be considered in the 2nd stimulus package.