Business sector shares proposals

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PETALING JAYA: Businesses are appealing to the government to help reduce their operating costs, including temporarily suspending fees, ahead of a stimulus package to mitigate the impact of the Covid-19 outbreak on the economy.

SME Association of Malaysia president Datuk Michael Kang suggested that the government provide special and easier approval for loans to small and medium businesses to overcome cash flow issues.

Kang said many industries were reeling from the Covid-19 outbreak, especially the tourism, services and manufacturing sectors.Malaysia-Singapore Coffee Shop Proprietors General Association president Datuk Ho Su Mong said there had been a 50% reduction in business since January. Malaysian Employers Federation president Tan Sri Azman Shah Haron proposed that the government defer the implementation of the minimum wage of RM1,200 per month until the industries could return to normal.

“This will reduce the cost of doing business and increase disposable income of employees to boost up their purchasing power,” said Azman. A survey conducted by the Associated Chinese Chamber of Commerce and Industry Malaysia , among its members showed that 82.1% of the 331 respondents projected that sales between January and March this year would be badly affected.“Tourism-related businesses will be the hardest hit with more than half expecting sales to plunge by more than 20%, ” said the chamber.

Prof Dr Yeah Kim Leng, an economist with Sunway University, hoped the economic stimulus package would ensure a “Malaysians helping Malaysia” approach to spur domestic demand. “A stimulus package that includes incentives and support for airlines, travel and tour agencies, hotels and restaurants as well as food, beverage and retail outlets to offer promotional packages is one way to spur domestic tourism and consumer demand in the sectors,” he said.

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