Business

Putrajaya mulling enhanced SOPs to reopen nation’s ailing SMEs

More than half a million small businesses at risk of going bust by October if they remain closed, says minister

Updated 4 years ago · Published on 27 Jul 2021 10:00PM

Putrajaya mulling enhanced SOPs to reopen nation’s ailing SMEs
Hairdressers are among six types of businesses that could be reopened under proposed Covid-19 standard operating procedures being considered by Putrajaya. – The Vibes file pic, July 27, 2021

KUALA LUMPUR – The Entrepreneur Development and Cooperatives Ministry today submitted a proposed enhanced standard operating procedures (SOPs) to the government to help speed up the reopening of micro, small and medium enterprises safely.

In a statement, its minister Datuk Seri Wan Junaidi Tuanku Jaafar said the proposal focused on six economic activities, namely dine-ins, shopping malls, watch shops, pedicure and manicure services, beauty parlours and salons, and barbers.

Almost half of the business activities identified are owned by women entrepreneurs, who are among the groups most affected by the nationwide lockdown.

He said many have expressed willingness to operate under stricter SOPs and would give full cooperation to authorities.

“In fact, they (industry players) are very proactive and cooperative in this. The enhanced SOPs prepared by the ministry is a collaborative effort with stakeholders,” he said.

The proposed enhanced SOPs were handed over by Wan Junaidi to Deputy Prime Minister Datuk Seri Ismail Sabri Yaakob.

Meanwhile, the SOPs entail a comprehensive set of guidelines from handling customers, managing staff, operating hours, as well as premises maintenance to ensure all comply with Covid-19 safety requirements.

Entrepreneur Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar (right) submitting a new set of guidelines to expedite the reopening of small businesses in Malaysia to Deputy Prime Minister Datuk Seri Ismail Sabri Yaakob. – Wan Junaidi Tuanku Jaafar Facebook pic, July 27, 2021
Entrepreneur Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar (right) submitting a new set of guidelines to expedite the reopening of small businesses in Malaysia to Deputy Prime Minister Datuk Seri Ismail Sabri Yaakob. – Wan Junaidi Tuanku Jaafar Facebook pic, July 27, 2021

Among the proposed mandatory procedures are ensuring business owners and workers complete their Covid-19 vaccination regimen; weekly Covid-19 swab tests; and immediate closure of premises for sanitisation should Covid-19 cases be detected.

Wan Junaidi said Malaysia’s small businesses, which accounts for close to 40% of the country’s gross domestic product (GDP), is on the brink of collapsing should the current nationwide lockdown continue indefinitely.

Based on a survey conducted by the ministry, it is estimated that some 580,000 businesses – or 49% of the sector – are at risk of failing by October if they are not allowed to open up their operations by then.

“The closure of these businesses would also mean that over seven million Malaysians are expected to be unemployed.

“Assuming that each worker has an average of two dependents, it will mean that another 14 million people will be affected by this situation,” he said.

The ministry conducted a survey from June 15-28 to gauge the impact of the movement control order (MCO 3.0) on entrepreneurship in Malaysia.

It found that nearly 60% of the total of 6,664 respondents suffered from at least one form of mental health condition during the lockdown.

The top three factors affecting mental health of entrepreneurs include decline and loss of income, debt and financing issues, as well as the risk of business closure. – Bernama, July 27, 2021

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