Building resilience for SMES and entrepreneurs

Recovery plan worth Rm453mil to assist businesses

PETALING JAYA: Additional programmes under the Entrepreneur Development and Cooperatives Ministry (Medac) could help entrepreneurs and small and medium enterprises (SMES) build resilience as businesses restart their operations.

Minister Datuk Seri Wan Junaidi Tuanku Jaafar said it had prepared the Entrepreneur and Cooperative Recovery Plan worth about Rm452.8mil to assist entrepreneurs affected by Covid-19.

Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) Koong Lin Loong said the efforts would be focused on providing SMES with on-ground help.

“During this pandemic, we need to build resilience. I think this is part of the micro measures by the ministry to help entrepreneurs, especially SMES, to revive and restart their business in the immediate to mid-term.

“The government cannot keep pouring in money because we don’t have that kind of resources. The government has done its part with wage subsidies, soft loans and ERP (employment retention programme). It’s about having programmes that are business-friendly to get them going,” said Koong.

This would hopefully involve assisting SMES with the implementation of new guidelines for business operations and the testing of foreign workers.

Koong pointed out that the programmes would be aimed at helping businesses stand on their own, noting that there are a variety of existing programmes under SME Corp that

“This is part of the micro measures by the ministry to help entrepreneurs, especially SMES.”

Koong Lin Loong

help companies through the various stages of their business.

The recovery plan outlined six key strategies to support the stability of the entrepreneurial ecosystem, revitalise entrepreneurs’ business operations and ensure entrepreneurs remain competitive and sustainable.

The plan will be carried out in two phases and is expected to benefit 21,847 recipients including micro-entrepreneurs, medium-sized enterprises, social entrepreneurs, startups and cooperatives.

The first phase will run from May to December and require an allocation of Rm230.1mil, of which Rm175.79mil will go into implementing six new programmes and 10 existing programmes that will utilise existing Medac allocations and agencies.

The second phase will run from January to May 2021 and will require an allocation of Rm222.69mil to cover 19 new programmes and 11 existing programmes.

Wan Junaidi said the application for the allocations for the second phase has been submitted by the ministry and its agencies to the Economic Planning Unit.

Industry observers noted that this could be rolled out under funds allocated through Budget 2021 and the 12th Malaysia Plan.

“The ministry is also working with the Finance Ministry on the development of the Covid-19 Post-economic Recovery Plan.

“The current and future initiatives are in line with the government’s policy of ensuring that the people, especially entrepreneurs, receive the support of Medac so that their business can operate normally during the implementation of the conditional movement control order nationwide,” said Wan Junaidi.