KUALA LUMPUR – Klang MP Charles Santiago has met Datuk Seri Tengku Zafrul Tengku Abdul Aziz to formally pitch his government-backed rental relief fund proposal after it was dismissed in Parliament last month.
Speaking to The Vibes, Santiago said he had “a positive meeting” with the finance minister, who agreed in principle to the idea and acknowledged the need to support it due to economic hardships brought about by the Covid-19 pandemic.
“Our point (to him) was that a lot of small businesses are suffering financially because of high operational costs and drops in revenue. I told him that it is estimated that many small and medium enterprises (SMEs) are going to shut down in the next three months.
“To be fair, the government is also providing support for businesses through the rental subsidy scheme, where landlords can apply for a 30% tax deduction. But not many are applying for it.”
However, said the DAP leader, even with the 30% rent reduction, most SMEs will still have difficulty paying their dues because of high operational costs and low sales.
According to Santiago’s proposal, the scheme will be in the form of a maximum monthly assistance of RM8,000 for six months.
As for the funding needed to back his proposal, he said the money can be drawn from the RM20 billion Covid-19 Fund – as suggested by Tengku Zafrul’s deputy, Datuk Mohd Shahar Abdullah.
The Covid-19 Fund parliamentary bill will be tabled in the Dewan Rakyat tomorrow.
“As for how to implement it, I briefed him that Singapore does a direct contra with retailers, where the money goes directly to the shopkeeper,” said Santiago.
“In England, they did it through their Housing Ministry, as it is closely linked to local councils. Still, the mechanism needs to be ironed out.” – The Vibes, December 15, 2020
