KUALA LUMPUR: Malaysia’s latest RM15 billion stimulus package will provide support for small and medium enterprises (SMEs) to sustain operations while safeguarding jobs and the economy, SME Association of Malaysia president Datuk Michael Kang Hua Keong said.
Kang, however, hoped the government would open up all economic sectors to allow more businesses to resume activities to revive the economy, which had been battered by the Covid-19 pandemic and the resulting Movement Control Order (MCO).
“Those businesses seriously need help, especially those in the pub, tourism, private (kids) enrichment centre, event, mall restaurant and retail business,” Kang said when commenting on Perlindungan Ekonomi dan Rakyat Malaysia (Permai) stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin yesterday.
The Permai aid package boasts 22 new initiatives that Muhyiddin said would put money in people’s pockets and ensure the survival of businesses.
The initiatives include an expansion of the Prihatin Special Grant Plus assistance to cover 500,000 SMEs in the seven MCO states with a payment of RM1,000 each, while 300,000 SMEs in other states will receive RM500 each.
Centre for Market Education chief executive officer Dr Carmelo Ferlito said the Permai relief package was implemented on the basis that MCO 2.0 would harm people by hurting the economy, but was necessary to contain the virus outbreak.
“But now, we have evidence that lockdowns do not contain the Covid-19 outbreak.
“So, if the MCO is less effective in containing the virus, it would harm the economy without doing any medical good,” he told the New Straits Times.
He said the government could have saved resources to deploy on strengthening the healthcare system instead of having another MCO.
“We should focus on better data analysis and communication to allow health authority and individuals to assess the risk.”
He added that MCO would weigh on the government’s fiscal burden that would be paid by future generations in terms of debt, inflation or taxes.-NST