KUALA LUMPUR

news@nst.com.my

MANY small- and mediumscale enterprises (SMEs), greatly affected by the Covid-19 pandemic, will be able to restart their businesses with muchneeded capital through the microcredit financing fund under the Strategic Programme to Empower the People and Economy (Pemerkasa).

Experts have described the additional RM500 million allocation as timely, especially after the collapse of many small businesses due to financial challenges throughout both phases of the Movement Control Order (MCO).

Associate Professor Dr Ahmed Razman Abdul Latiff said any initiative by the government involving direct fiscal injection to micro-enterprises and SMEs was welcomed, and could assist them in managing immediate financial commitments.

“Some SMEs are still facing liquidity crises due to low revenue from their businesses, and, at the same time, still have to endure paying for operational expenses such as salaries, utility bills, rent, bank loans and other financial commitments.

“Initiatives like this will at least help them improve their cash holdings, or maintain enough cash to sustain their businesses,” he said.

Ahmed Razman said the majority of SMEs that had been badly affected include those in the hospitality, tourism, transport and entertainment sectors.

Without enough patrons, he added, these businesses would fall heavily into debt and might be forced into bankruptcy.

He suggested for the government to start reopening more sectors, and allow for cross-border travel to encourage people to spend, which would increase business transactions.

“However, this can only be done only if the vaccination programme is on track

Dr Ahmed Razman Abdul Latiff