PRIHATIN package helps businesses to restrategize to stay sustainable

By Lizawati Bahanan

KUALA LUMPUR, April 1 -- The Movement Control Order (MCO), which is entering its second phase, has certainly raised anxiety in people from various levels and background -- from self-employed to wage earners to those running businesses, including small and medium enterprise (SME) entrepreneurs.

However, they can now breathe a sigh of relief following the recent announcement of the RM250 billion Prihatin Rakyat Economic Stimulus Package (PRIHATIN) by Tan Sri Muhyiddin Yassin which was aimed at protecting the people wellbeing, supporting businesses and strengthening the economy to battle the COVID-19 impact.

In presenting the Prihatin Package on March 27, the Prime Minister used an analogy of Mak Cik Kiah, a pisang goreng (banana fritters) seller and her family, to demonstrate how an average bottom 40 per cent of the household income group (B40) family could benefit from the initiatives.

Like 'Mak Cik Kiah’, who would be enjoying cash handouts and savings amounting to RM7,864 under the PRIHATIN package, the government is also providing easy-term financing facilities to 'Mak Cik Kiah' acquaintances, including SME entrepreneurs to ensure their sustainability.

For Dhiya' Legacy and Dhiya' Zulhilmi Consultancy founder Dhiya Zulhilmi Daud, the PRIHATIN package for SMEs is a testament to the strong support from financial institutions to the viability of SMEs, especially during the economically challenging times due to COVID-19.

“For SMEs that are in dire needs of capital to continue their operations and cover overhead costs, the financing facilities from financial institutions in the package is a great help and timely.

“This is because SMEs and small and medium industry (SMI) are the backbone of the country’s economy. If they are not assisted, it is not impossible that many SMEs and SMI players will shut down and many people will be unemployed,” he said when contacted by BERNAMA on the financing facilities provided to SMEs and SMI under the PRIHATIN package.

To assist SMEs, including micro-entrepreneurs, the government is allocating RM4.5 billion via five main initiatives, including RM3 billion under the Special Relief Facility Fund with a reduction of interest rate to 3.5 per cent from 3.75 per cent and increasing the fund size by RM1 billion to RM6.8 billion under the All Economic Sectors Facility to enhance financing access to SMEs.

Other initiatives are a RM500 million allocation under the BSN's Micro Credit Scheme at a 2.0 per cent interest rate (maximum financing of RM50,000), with no collateral and more relaxed eligibility requirements, while the Biz Start-i and Women-Biz Scheme under Credit Guarantee Malaysia Bhd (CGC) provides a RM300,000 financing with less than four-year business record.

The Business Financing Guarantee Company (SJPP) would also provide a loan facility worth RM5 billion, with the guarantee rate increased from 70 per cent to 80 per cent for SMEs that have trouble getting loans.

Dhiya Zulhilmi, who started his laundry service in 2015, said he has a number of strategies to keep his business to stay focused and under control.

“I’ll make a capital review, list the aspects that need to be changed and improved using the current business model, continue with promotional activities by inventing comprehensive, efficient and cheap promotional activities, and raise engagement activities so that when the economy recovers, the customers will still remember our products and brand,” he said.

He added that every entrepreneurs need to have financial risk planning through savings or by investing in a business takaful policy that could be liquidated to cover the operational expenditure during tough times.

For Let Kudap2 founder Norakmah May Youb, the government’s resolve to assist SMEs to remain competitive during the economically challenging times must be accompanied by guidelines from relevant authorities to ensure that entrepreneurs utilise the funds as best as they could.

“The efforts shown by the government is very good and it must be capitalised by entrepreneurs to sustain and expand their business,” she said.

Al Hakim Education Centre kindergarten owner Fakhriah Ismail said the micro-credit facility, which offers a low interest rate and the RM600 per employee wage subsidy scheme for employers, can help ease her business financial burden.

“Currently, the kindergarten is not operational due to the MCO, hence, parents are not paying the fees. We have to give discounts on the fees. Our income has definitely been reduced,” she said.

Another acquaintance of Mak Cik Kiah, who would be enjoying cash handouts under the PRIHATIN package is roti canai seller Azmi Ahmad. He would get RM1,600 Bayaran Prihatin Nasional and another RM600 Bantuan Sara Hidup (cost of living aid).

Although he is not receiving as much as Mak Cik Kiah as he is not a retired civil servant nor a RELA member or a e-hailing driver, he is still grateful for not being left out of the PRIHATIN package.

“I’m happy and grateful to the government for their concern by extending aid to small traders like me. My business has been affected by the MCO, but I still go on with my business from home by taking orders from customers even though my earnings are not as good as before,” he added.

-- BERNAMA