MEF Calls For Survival Package To Strengthen MSME Support
KUALA LUMPUR, Aug 12 (Bernama) -- The Malaysian Employers Federation (MEF) is calling on the government to strengthen assistance for micro, small and medium enterprises (MSMEs).
It noted that businesses continue to face pressures from rising operating and labour costs, financing constraints, weaker cash flows, supply-chain disruptions, regulatory requirements and intense market competition.
MEF president Datuk Dr Syed Hussain Syed Husman has proposed that the government consider introducing a coordinated MSME survival and resilience package to help businesses navigate ongoing cost and cash-flow pressures.
He said the package should include targeted and temporary tax relief, faster and simpler access to financing and greater use of cash-flow-based lending.
"Under this package, the government should consider expanding government-backed guarantees, temporary regulatory and compliance relief, faster payments to MSME suppliers, greater MSME access to government procurement and employment retention support," he said in a statement today.
He stressed that MSME policy must ultimately be viewed through the lens of employment and economic sustainability.
"Helping viable MSMEs survive is itself an important way of protecting workers because these businesses provide employment to millions of Malaysians and support extensive domestic supply chains.
"Our objective is not to keep inefficient businesses alive indefinitely or prevent viable businesses from being pushed into closure because of temporary cash-flow and cost pressures beyond their control," he said.
MEF said it is ready to work closely with the Ministry of Entrepreneur and Cooperative Development (KUSKOP), the Ministry of Finance (MoF), Bank Negara Malaysia (BNM) and other relevant agencies to ensure that MSME assistance is practical, accessible and responsive to actual business conditions.
"MSMEs have shown remarkable resilience through repeated economic challenges. They have continued to employ Malaysians, support local suppliers and contribute to the economy even when their own margins are under pressure.
"They now need a stronger and more comprehensive safety net. The government has already taken important steps. MEF’s call is for us to go further — faster, more targeted and with greater urgency — before temporary business difficulties become permanent closures and job losses," added Syed Hussain.
-- BERNAMA