KUALA LUMPUR – The government will not set up a rent relief fund for now, but has other means to assist troubled small and medium enterprises (SMEs), Deputy Finance Minister Mohd Shahar said.
In his parliamentary reply on November 25, he said the House passed in August the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020.
“This law protects renters of commercial premises that are not able to perform its contractual obligations due to the Covid-19 pandemic.”
Among the protections awarded by the Covid-19 Act includes no eviction in the event rent is not paid. However, this provision is only valid until December 31.
Shahar said the government is monitoring economic developments and studying methods to assist affected businesses.
He added the government is engaging with state governments and local councils over discounts for commercial premises under their jurisdictions.
Shahar was responding to a query by Charles Santiago (PH-Klang) on the government’s intention to set up a rent relief fund, given that many SMEs have closed due to the economic impacts of the pandemic.
Charles said rental costs consume at least 15 to 20% of a business’ operation cost, adding that a rent relief fund would help the B40 and M40 recover from the downturn and reduce the risk of bankruptcy. – The Vibes, November 30, 2020
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