MEF: Extend loan moratorium to ensure survival of SMEs, micro businesses

MEF: Extend loan moratorium to ensure survival of SMEs, micro businesses
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KUALA LUMPUR (Nov 11): The Malaysian Employers Federation (MEF) hopes the government can extend the loan moratorium to ensure business survivability especially among the small and medium enterprises (SMEs) and micro enterprises.

Its president, Datuk Dr Syed Hussain Syed Husman, said while the government initiatives to accelerate economic recovery have been well received, much more is needed to keep companies afloat and at the same time maintain the employment of existing employees.

“We are thankful to the government for the various initiatives in Budget 2021 but more meaningful interventions are needed to ensure business continuity (of) especially the SMEs and micro enterprises,” he said in a statement today.

He said based on feedback from MEF members, the wage subsidy programme helps with easing cash flow but this is not good enough because the wage subsidy would only work if the business continues to exist.

“The lifting of the moratorium has made it very difficult for businesses to carry on.

“Employers are really hoping that the moratorium would be extended as this would significantly help sustain business operations during this challenging and difficult time," he said, adding that about 60% of MEF members are SMEs and it is critical for the well-being of the economy that SMEs be kept alive.

He said the federation hopes the government would reconsider extending the moratorium and perhaps provide some tax relief for year 2020 assessments for businesses so that the extra cash can be used to finance more technological improvements and, at the same time, create more job opportunities.