HAPA GROUP ON BEHALF OF THE F&B, TOURISM AND HOSPITALITY SECTOR APPEALS TO GOVT TO SAVE BUSINESSES & JOBS
Published by Lavinesh @ 06/04/2020
Jennifer Ong, Founder and Chief Executive Officer of HAPA Group
HAPA group, a private group representing hospitality, F&B, and travel industry owners such as Lexis Hotels and Resorts, warns that many companies could collapse as a result of the extended Movement Control Order (MCO), prompting thousands to lose their jobs, if the Government does not provide immediate assistance; Aside from the Government, SMEs hold the biggest group of employers in Malaysia, retaining millions of employees collectively.
The biggest issue faced by Hospitality, F&B, and tourism industries is cash conservation while the most significant expenses in these businesses are staff costs and rentals followed by utilities. HAPA claims that any form of relief is critical at this stage to combat this crisis in order to keep the industries and businesses afloat, ease their cash flow and to avert a potential loss of hundreds of thousands of jobs.
The HAPA Group is proposing the following steps to be considered for all hotels, tourism and F&B sectors to avoid an economic meltdown:
Deferment of income tax payments for 6 months for company and individual. In addition, companies to be allowed to revise their profit estimates for 2020 with respect to monthly income tax installment payments without penalty.
Deferment of HRDF contributions for 6 months.
Waiver of SST for 6 months and thereafter introduce a softer version of SST.
Defer EPF and SOCSO contributions for 6 months for both company and individual.
Suspend collection of utilities and assessment charges for 6 months.
Suspend collection of tourist tax and capitalize on the low ringgit to fuel spending by tourists.
Mandatory waiver of rentals from landlords and a 6-month moratorium on bank loan payments for landlords.
6-month moratorium on all bank repayments for all SMEs in need without exception.
Defer all license payments for 6 months for the hotel and F&B sector.
Immediate increased funding to SMEs through a simple and smooth approval process.