PETALING JAYA: The Malaysian Employers Federation (MEF) has appealed to the government to strengthen existing assistance for micro, small and medium enterprises (MSMEs) through a “survival and resilience” package.
MEF president Syed Hussain Syed Husman said MSMEs continued to face mounting pressures from rising operating and labour costs, financing constraints, weaker cash flows, supply chain disruptions, regulatory requirements and intense market competition.
He acknowledged the various forms of assistance the government provided for MSMEs through banks, but expressed concern that these were not reaching businesses quickly enough.
Syed Hussain also voiced fear that the aid’s quantum was insufficient and might not address the full range of pressures faced by MSMEs.
“For a small business struggling with cash flow, assistance received three or six months too late may no longer be assistance. By then, the business may already have accumulated arrears, lost employees, lost customers or ceased operations.
“The principle must therefore be simple: assistance must be fast, accessible, affordable and designed around the realities of MSMEs, rather than around complicated administrative processes,” he said in a statement.
Syed Hussain called for an assistance package that includes temporary tax rebates, reduced tax liabilities, or enhanced tax deductions for qualified MSMEs experiencing high cost and cash flow pressures.
The package can also include faster, simpler access to financing, with existing facilities accompanied by streamlined applications, faster approval and more practical assessment criteria, he added.
Syed Hussain also suggested that the package offer expanded government-backed guarantees.
“Credit guarantees should be strengthened to enable banks to support viable MSMEs that may not possess sufficient conventional collateral.”
