BUSINESSES URGED TO START DIVERSIFYING
Stimulus aid merely a backstop measure that is transitory, says economist
BUSINESSES need to change their strategies to remain competitive amid abundant government assistance, said Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He said the economy would recover in the second half of this year and businesses should start diversifying during the Covid-19 pandemic to sustain themselves in the long run.
“The Strategic Programme to Empower the People and the Economy (Pemerkasa) stimulus announced last week merely provides a kind of backstop measure that is transitory in nature.
“Hence, they need to galvanise all available resources to move forward.”
Afzanizam said businesses might need to venture into new products or markets or partnerships.
“Businesses must be able to cope with limited cash flows and be able to forge new areas or markets.”
Pemerkasa, worth RM20 billion, is the sixth stimulus package, bringing the total stimulus aid to RM340 billion.
Among the assistance is the RM500 million allocation for microcredit financing facilities via programmes under Bank Simpanan Nasional, Tekun Nasional Malaysia, Majlis Amanah Rakyat and SME Corp.
Besides, a one-off assistance of RM1,000 for the Prihatin Special Grant 3.0 as well as the RM700 million Automation and Digitisation Facility for small and medium enterprises to obtain loans are available.
Bumiputera Manufacturers and Services Industry Association
of Malaysia president Datuk Azman Yusoff opined that its strategy to strengthen business was to have better work conditions and housing.
Through Pemerkasa, small infrastructure contractors, especially those in the G1 to G4 categories, will benefit as their allocation has been raised from RM2.5 billion to RM5 billion.
“We need to ensure that the small jobs take off immediately because the national construction industry was very much affected during the Movement Control Order 2.0 as most jobs that were being awarded were not carried out.
“So, more opportunities for new business ventures for small contractors via tenders, direct awards and other methods are available.”
Azman suggested that the Construction Industry Development Board take the lead on worksite and workers’ issues via engagement sessions with the authorities and the Works Ministry.