KUALA LUMPUR (March 30): The National Chamber of Commerce and Industry of Malaysia (NCCIM) is urging the government to grant employers enhanced wage subsidies with higher amount given and no conditions attached.

In a statement yesterday, NCCIM also asked for post-Covid-19 assistance as it is likely to take at least 6-12 months from containment, stabilisation and recovery before people and businesses return to normalcy.

It said that the RM250 billion second economic stimulus package announced last Friday is to soften the impact of the global Covid-19 pandemic-inflicted health risk, economic damage and financial losses on the economy.

"The proposed wage subsidy given to the employers should be further enhanced in terms of the higher amount given and no condition should be attached.

"The disruption has caused companies with low cash reserves and unstable cash flows [to be] vulnerable [particularly] during the Movement Control Order (MCO) and also the persistent sharp economic slowdown envisaged for the greater part of this year," it said.

Thus, acute cash flows and the collapse in revenue would push many businesses to the brink of bankruptcies and hence cause massive layoffs and job reductions. 

NCCIM also said the rising number of retrenchments not only cause hardship to households but also inflict downward spiral effects on domestic demand and would grind the economy to a halt. 

"The focus of most businesses is now on preserving cash flow and capital as well as protecting employees, responding to the immediate challenges and shocks and preparing for the eventual upturn. 

"We will continue to actively liaise and engage with the government and relevant ministries to pursue the issues and matters concerning the survival of [the] business community to support the economy," it said.

See also:
Muhyiddin's speech on Prihatin Rakyat Economic Stimulus Package
Highlights of Malaysia's Economic Stimulus Package

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