GEORGE TOWN – Small medium enterprises (SMEs) are hoping that special measures introduced to protect the economy during Covid-19 will be continued in Budget 2023 despite signs that the pandemic’s impact is now diminished.
The Federation of Malaysian Business Association (FMBA) said that the national economy has yet to fully recover as Covid-19 has brought along a host of new socio-economic threats besides just healthcare.
Businesses are now primarily dealing with rising living costs, acute labour shortages, depreciation of the ringgit and food security concerns, as well as low consumer confidence due to the uncertainty brought on by a looming general election.
FMBA chairman Datuk Abdul Malik Abdullah said theTemporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 will cease on October 22, but the federation wants it to continue.
“If discontinued, it means we will not have leeway against creditors. We have not recovered or earned enough to begin our repayment process,” said Malik in an interview.
He said their concerns were proven when the act was almost withdrawn last year and the anticipation saw banking and financial institutions starting to pressure businesses for payments owed without considering SMEs’ current economic situation.
It affected scores of businesses when they were listed in credit reporting agencies, in financial information systems, as well as with the Malaysian Insolvency Department, he added.
It will take time to settle debts owing to a sluggish growth, Malik said.
The federation’s affiliate members have unanimously agreed with an Emergency Resolution in requesting for the Finance Ministry to exercise its authority to introduce a special moratorium to give space to their businesses to strengthen the financial flow of their respective businesses who are still struggling to recover.
FMBA deputy secretary-general Sri Ganesh Michiel urged the relevant authorities to find ways to alleviate the various factors inhibiting the ability of SMEs to improve their cash flow.
On one hand, the return to exports has fuelled growth in the economy, but in the real economy, the struggle among local SMEs continues, said Ganesh.
Meanwhile, the chief executive officer of the hoteling consultant group Aariana Hospitality International, says that if the right form of aid is not allotted for tourism, many experienced hoteliers may need to find jobs overseas.
Experience hoteliers cannot be going around earning RM2,000 only, Reginald Thomas Pereira.
He said that although the industry is suffering from an acute shortage of workers, the issue is to provide a proper wage system to suit an economy hit by inflation and stagflation.
To offer better wages, the hotels’ operating expenses need to be lowered and more incentives given to the training of hoteliers and embracing tech, said Pereira.
He suggested that utility tariffs, from water to electricity, be lowered and the local government waive some charges to allow the hotels to rebound better from the shortfalls due to Covid-19.
Pereira also called for a review of the tourism policy from the costing and practical standpoint, saying it is now cheaper to fly to Singapore and Bangkok – which are international routes – than to fly to Langkawi from Kuala Lumpur.
“How can we promote our tourism when we are given a raw deal by our own airliners?”
It is not surprising to hear of reports that more Malaysians are now heading to Thailand despite the depreciation of the ringgit against the baht there, Pereira added. – The Vibes, October 5, 2022
