GEORGE TOWN – There is a need to extend a new stimulus package to Malaysians who are not captured in official data as employees or workers because they are part of the gig economy – as short-term, freelance and part-time income earners – said a Penang Chinese Chamber of Commerce official.
According to Datuk Finn Choong, who is the chamber’s vice-president, there is a high number of people employed under the micro, small and medium enterprises (SMEs) category who have fallen through the cracks, as they have gone undetected by the Finance Ministry.
“They are not in any database as they do not subscribe to the Inland Revenue Board (IRB), Employees Provident Fund (EPF) or Social Security Organisation (Socso). They are likely the most affected as aid has not reached them.”
He said if no help is forthcoming under the present movement control order (MCO 3.0), some may resort to crime or illicit underground activities to survive.
The country needs to boost domestic consumption to power up the economy, which has come under siege due to the effects of Covid-19, he added.
Choong said this in an interview with The Vibes, while commenting on the Federation of Malaysian Business Associations’ (FMBA) call for a zero-interest moratorium until December 31, together with financial support and wage subsidy programmes to help the private sector cope during MCO 3.0.
On its website, Randstad, a leading staffing agency in Malaysia specialising in human resource solutions for employers and jobseekers, cites World Bank data showing about 25.3% of the Malaysian workforce being freelancers in 2018. It said the number is also growing, as more people opt for flexible working hours.
Choong said Penang’s economy is 80% driven by SMEs and the “micro version” of informal hiring, including contractors.
“Mind you, not everyone works as an electronic engineer in Penang. There is a high number in the informal sector. We have yet to tabulate the foreign workers, too.”
He urged the Finance Ministry to introduce more socialism-driven packages to help the downtrodden, as Covid-19 threatens the free market Malaysia has inherited from the colonial era.
“We cannot expect the free-market concept to return as long as Covid-19 instils more restrictions than ever. We need to offer socialism help, especially to those not captured by data or statistics.”
Tourism last to recover, needs help
In a related development, Malaysian Association of Hotels Penang chapter chairman K. Raj Kumar urged the government to look into the issue of private-sector lenders, including banks and financiers, not underwriting the hospitality industry as its outlook is bleak.
As tourism is forecast to be the last sector to recover from the pandemic, Raj said the government needs to inject fresh concepts to drive the economy.
“If we extend the moratorium, we still have to pay. It is just that the banks have delayed payment.
“They have not written off loans; they just extended the repayment schedule and, over time, they will make more money back from interest. And we, as hoteliers, are in the red zone of banks.”
He urged the government to come up with new strategies that can boost domestic tourism while allowing hoteliers to reduce their operating expenses as they cannot charge too high in terms of service or products what with their clientele mostly comprising locals. – The Vibes, May 19, 2021
