Stimulus package should also benefit SMEs – SUCCC
SANDAKAN: Sabah United Chinese Chambers of Commerce (SUCCC) President Tan Sri Andrew Liew Sui Fatt said the economic stimulus package totaling RM250 billion announced by Prime Minister Tan Sri Muhyiddin Yassin recently would not be able to effectively stimulate and drive the slow economy, and he believes that the Federal Government should take into account the problems faced by Small and Medium Enterprises (SMEs).
Liew said he believes that other than helping the low-income groups, the package should also benefit the SMEs.
He pointed out that while the economic stimulus package is undeniably a good measure to help the people; most of the benefits only go to working families, low-income and middle-income families, and for employees who are receiving monthly salary.
“It is too bad that companies and enterprises with various expenditures could not fully benefit from this package. The package includes lowinterest loans to businesses, and conditional assistance of RM600 for three months for employee salaries, but this is not effective in increasing cash flow,” he said.
“The package also offers easier financing access for SMEs. While it might help, it is still the concept of ‘pay in the future'. This move will allow businesses to get a loan to pay their employees' salaries and other expenses, but they have to repay it to the bank. At the end of the day, the biggest ‘winner' is the bank.
“On the surface, this is a good initiative, but not all companies can really benefit. After all, the loan needs to be repaid," he explained.
He said it is forecasted that the economic condition in Malaysia is going to take some time to recover, which would cause financial burden and pressure on businesses.
Liew also said that the package may offer easier financing for business owners under Special Relief Facility for SMEs, but from past experience, it is known that Sabah companies and businesses face more difficulties when applying for these loans compared to those in the Peninsular.
“Companies in West Malaysia can often apply loans from Federal Government quickly and efficiently, while in Sabah it is going to take more time. The government must take this into account,” he said.
Liew suggested and hoped that the Government could give 50 percent discount to all taxpayers, employers or employees, so that everyone could enjoy the benefit during these difficult times.
"If the government can reduce taxes and refund all withholding taxes paid in the shortest possible time, and the GLC (governmentlinked companies) also lend a helping hand and offer discount on utility bill by 50 percent, this will be a multi-pronged action. We could increase the cash flow in the market, thereby stimulating the spending power of the entire market," he said.
Liew believes that it is necessary for the federal government to carefully monitor the implementation and progress of the economic stimulus package to ensure that under the current circumstances, it can benefit all enterprises, businesses and the entire people, so that all parties could reach a win-win situation.