No matter how relaxed we’ve become in terms of health practices and protocols, the aftermath of COVID-19 continues to wreak havoc on small and medium enterprises with proprietors struggling to manage cash flow.
National Recovery Council chairman and former Prime Minister Tan Sri Muhyiddin Yassin have, therefore, on behalf of the council, proposed another special moratorium to help these business owners, adding that many have suffered losses of 30 to 40% during the MCO period and others going bust altogether.
Moratorium for Micro, Small, and Medium Enterprises needed!
“Even if financial institutions reintroduced another round of relief to give our Micro, Small, and Medium Enterprises (MSMEs) a chance to regain momentum, they would not suffer significant losses. About 96% of the country’s economic activities are driven by MSMEs. So, if they fail to create a competitive market, the economic recovery will be slow, and halted by the rising inflation.”
This proposed special moratorium isn’t a new recommendation but one that has been brought up several times within the NRC and to the government. However, this seems to not extend to Malaysians and their personal financing repayments – car loans included.
“We proposed that the government come up with a firm solution to hasten the economic recovery process and ease the burden borne by the rakyat. We hope that Prime Minister Datuk Seri Ismail Sabri Yaakob can find a way to help the people as the increase in the overnight policy rate (OPR) has put even more burden on them, besides the weakening ringgit,” he added.
Last week, Bank Negara increased OPR by 25 basis points to 2.5% – their 3rd consecutive hike this year – with floor and ceiling rate set to 2.25% and 2.75%, respectively.
If approved by the government, this newest special moratorium would essentially be a successor to 2021’s relief programme which was aimed both individuals and MSMEs that coincided with Pemulih.