KUALA LUMPUR – More than 90% of micro, small, medium and informal enterprises will be at risk of closure if the movement control order (MCO) continues, said the Entrepreneur Development and Cooperative Ministry (Medac).
Its minister, Datuk Seri Wan Junaidi Tuanku Jaafar said, as such, the ministry will continue to undertake intervention measures under the Entrepreneur and Cooperative Recovery Plan, and offer financing assistance and targeted moratoriums to help entrepreneurs brace themselves from the impact of the MCO.
The government had allocated RM340 billion under various economic stimulus packages to help cushion businesses from the financial effects of the MCO.
Meanwhile, Wan Junaidi said the findings of two online surveys in March were worrying.
“(A total of) 54% of the 3,855 respondents, especially micro enterprises, said they can only survive for three to six months.
“Meanwhile, 72% of entrepreneurs expected that businesses would continue to suffer losses,” he told an online media conference on the findings from the “Impact of the Implementation of MCO on Entrepreneurs in Malaysia” research report.
He said the current situation may also contribute to job losses for more than three million Malaysians.
“Micro and informal enterprises are the worst affected as their products and services are in the non-essential sectors, and they do not have solid savings and cash flow.
“As such, it is important to ensure that the appropriate type 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 the lockdown,” he added.
Wan Junaidi said a Medac survey involving 2,888 consumers found that the MCO has a negative impact on the people’s lives.
“The B40 group are more financially impacted, while the M40 and T20 groups were more impacted by social issues,” he said.
The survey also revealed that private sector workers face a higher risk of being retrenched, the minister said.
“Additionally, more than 50% of the B40 group and almost half of the M40 group have faced income reductions of between 10% and 30%, while 30% of the T20 group saw their incomes reduced by more than 50% due to the implementation of the MCO.” – Bernama, June 4, 2021
