SAMENTA LAUDS FINANCIAL AID FOR SMES UNDER PEMERKASA PLUS

By Farhana Poniman

GEORGE TOWN, June 1 – The small and medium enterprise (SME) sector appreciates the financial aid announced by the government under the RM40 billion PEMERKASA Plus stimulus package yesterday, particularly the extra RM2 billion Targeted Relief and Recovery Facility for affected SMEs.

Small and Medium Enterprises Association (Samenta) national secretary-general Yeoh Seng Hooi hoped the authorities would ensure the fund would reach the intended SMEs that have been impacted by the full Movement Control Order (FMCO).

“The banks should not take the easy way out and lend to profitable SMEs with collateral. Furthermore, approvals must be expedient even though the staff are working from home because the speed of disbursement is crucial,” he told Bernama.

Yesterday, Prime Minister Tan Sri Muhyiddin Yassin also announced RM1.5 billion allocation for the one-month Wage Subsidy Programme under the Social Security Organisation (Socso) for all affected economic sectors, with a limit of 500 employees per application.

While this is helpful, Yeoh said a one-month wage subsidy would not be sufficient and the programme should be at least three to six months.

Other than that, he said the loan moratorium would be a big help to the SMEs and provide a much-needed lifeline for them.

Under the stimulus package, it was announced that all under the B40 group, those who have lost their jobs, as well as SMEs not allowed to operate during the FMCO would be given the option of automatic approval of bank moratorium for three months or a 50 per cent reduction in loan repayment for six months.

Commenting on the FMCO and its impacts on Samenta members, Yeoh said those in the non-essential sectors, about 20 per cent to 30 per cent, would be hit the hardest.

“Members that are in the non-essential sectors like tourism-related and retail have depleted their reserves,” he added.

-- BERNAMA