ALOR STAR – Kedah DAP wants the state government and local authorities to consider a 50% reduction in quit rent and exemption of business license fees for all “non-essential” economic categories forbidden from operating during the implementation of movement control order 3.0.
Party state secretary Teh Swee Leong said it has been 130 days since the tightened MCO was implemented in Kota Setar when it first started in January this year.
The closure of unauthorised economic sectors such as spas, beauty salons, barbershops, and daily/night market hawkers has affected all sources of income for traders and their workers.
“Prolonged implementation of the MCO has cost the economy. The failure to curb the epidemic has caused all involved in those industries to face tremendous pressure, as operating costs continue to accumulate.
“In a slowing economy with unemployment and job losses in the country, local authorities should stop urging small and medium enterprises (SMEs) to claim license fees or local government revenue according to schedule,” he said in a statement issued today.
Teh added that local authorities should provide flexibility to discuss with SMEs that fail to pay assessment or other payments handled by the city council.
Tax reductions on licences, implementation of moratoriums, and instalment payment methods should be given to affected SMEs.
According to the World Bank Report, liquidity appears to be a pressing issue and the median of Malaysian companies has only two months of cash flow.
Restriction or closure of business permits for 130 days during the MCO would risk closure for more than 90% of SMEs and micro enterprises.
The Kedah government was also urged to use its existing allocations to help local authorities implement a 50% reduction in quit rent and a one-year exemption of business license fees, in light of the fact that SMEs are the mainstay of the state’s economy.
The sector also accounts for more than two-thirds of the country’s total employment.
Teh added that many SMEs are on the verge of shutting down and will eventually go bankrupt, resulting in many Kedahans being laid off if no assistance from federal or state administrations are channelled their way.
He said that he hoped such help and assistance could alleviate the burden of struggling SME entrepreneurs who are seeking ways to help their workers overcome these difficult times. – The Vibes, June 26, 2021
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