Malaysia

SMEs’ survival on the line, MPs told ahead of Budget 2021 tabling

Industry player says businesses at risk of going bust, job creation needed following Covid-19 blow

Updated 5 years ago · Published on 30 Oct 2020 7:00AM

SMEs’ survival on the line, MPs told ahead of Budget 2021 tabling
In view of the Covid-19 pandemic’s impact on the economy, Putrajaya should extend its wage subsidy programme and special grants for businesses until next year, says the SME Association of Malaysia. – The Vibes file pic, October 30, 2020

by Amar Shah Mohsen

KUALA LUMPUR – The survival of small businesses – and accordingly, Malaysians’ livelihood – largely hinges on Budget 2021 being passed, said an industry player, urging MPs to stand united and ensure the bill’s success.

SME Association of Malaysia president Datuk Michael Kang told The Vibes that lawmakers on both sides of the aisle must set aside their differences amid the ongoing political drama, and instead, put the people and economy first when the Budget is tabled on November 6.

“The coming Budget is of utmost importance to Malaysians, and SMEs in particular. There needs to be assistance not only to save businesses from going bust, but to create more jobs for the people.

“MPs have to vote for the Budget, there’s no two ways about it. Next year should be the year we focus on recovery.”

His comments follow concerns that the opposition, as well as some MPs in the Perikatan Nasional government, will reject the bill on the back of the tumult facing Tan Sri Muhyiddin Yassin, who recently saw his bid to declare an emergency over Covid-19 denied by the Yang di-Pertuan Agong.

The prime minister has been rapped over his administration’s seemingly weak handling of the third coronavirus wave, and is fending off a leadership challenge from PKR president Datuk Seri Anwar Ibrahim, who claims to have majority support in the Dewan Rakyat.

Businesses fear that if the Budget is rejected, it will result in delayed aid distribution and a decline in investor confidence.

Kang said Putrajaya should extend its wage subsidy programme and special grants for businesses until next year, as well as offer rental subsidies.

Such assistance is especially key for industries hardest hit by the pandemic, including tourism, food and beverage, hotels and retailers, he said.

He said companies, too, should adapt their business models to the current economic landscape.

“We know that now, with the movement restrictions, people are less likely to leave the house to shop for goods or eat.

“So, businesses should go online.”

The Agong has called on MPs to give their undivided support to Budget 2021 for the sake of the people’s well-being and economic recovery.

Following a Supreme Council meeting last night, Umno president Datuk Seri Ahmad Zahid Hamidi said the party will ensure the Budget is voted through.

He said the party proposes, among others, an extension of the loan moratorium to aid the public and financial assistance for those who have lost their source of income due to the virus crisis. – The Vibes, October 30, 2020

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