Malaysian Economics: The role of Malaysian government in order to support the survivability of Small Medium Enterprises (SMEs) following Covid-19 pandemic

4. Discuss the role of Malaysian government in order to support the survivability of Small Medium Enterprises (SMEs) following Covid-19 pandemic.

    During the implementation of Movement Control Order (MCO), all the economic activities has been halted by the government in order to curb COVID-19 transmission in Malaysia. This would cause SMEs sector to limit their operation and disrupt supply-demand chain at the same time.  

    Bank Negara Malaysia (BNM) has improved the existing lending capabilities under its Fund for SMEs to assist SMEs in maintaining business operations and conserving jobs, as well as supporting growth in the current economic state.  Under Bank Simpanan Nasional (BSN), 2% of interest rate for the RM500 million Micro Credit Scheme has been abolished. Besides, under Economic Stimulus Packages, the moratorium has been extended for three months for selected group.  A Special Grant of RM3,000 also been given by the government to the registered SME.

    The government play a great role to help SME to survive in the market.  There were three financial aids given by the government to help Small Medium Enterprises (SME) to help them recover from the impact of COVID-19 pandemic.  The government has channeled the first aids through 2020 Economic Stimulus Package, followed by PRIHATIN Rakyat Economic Stimulus Package and PRIHATIN SME Economic Stimulus Package two weeks after.  The last aid was PENJANA Stimulus Package.

    On 27 March 2020, along with Bank Negara Malaysia (BNM), the government has allocated RM4.5 billion to help SMEs businesses.  This aid covers certain areas.  Special Relief Facility (SRF) is one of it.  For SMEs, the government allocate RM3 billion to SRF along with the reduction of the interest rate around 0.25% for the entire grant.  Besides, under All Economic Sectors (AES) Facility, RM1 billion has been allocated.  Next, under All Economic Sectors (AES) facility RM1 billion has been allocated.  Through this facility, SMEs business owners may utilized the aid to operate and expand their capital to help them grow.  In addition, they can use the aids under other facilities, like Fund's Automation and Digitalisation Facility (ADF), Agrofood Facility (AF), and Micro Enterprises Facility (MEF).  Then, the guarantee scheme of by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) also provides RM5 billion as well as help SMEs who are facing difficulty securing loans from 70% to 80% by enhancing the guarantee coverage.

    On 9 June, the government announced aids to cover new tax incentives, financial help for small and medium-sized firms (SMEs), and actions to protect jobs under Penjana Stimulus Package.  The banking industry would give RM2 billion at a 3.5% interest rate to help SMEs who are having cash flow constraints. The qualified SMEs owners can apply for up to RM500,000 in funding under Penjana SME Financing.  While, under Digitalisation of SMEs area, grants and loans from three programmes have been made available to help SMEs who want to digitalize or automate their operations.  In collaboration with telecommunication firms, the SME Digitalization Matching Grant was created.  The SME Technology Transformation Fund has set aside RM500 million in loans for small businesses. The loans will be available to apply for in July 2020; and The Smart Automation Grant is worth RM100 million in total. The maximum amount that a company can apply for under this grant is RM1 million.

    To conclude, the government plays an important role in helping SMEs businesses that have severely slowed since the pandemic outbreak.  The government has given the financial helps to SMEs through the stated packages continuously to ensure SMEs sectors are fully recovered.


Comments

Post a Comment

Popular posts from this blog

Urban: City's Labour Demand and Supply

  Describe in detail the factors that shift a city's labour demand and supply curve. What happens if there is an increase in demand for export goods? A city’s labour demand can shift to supply curve for several factors.   Under the ceteris paribus assumption, the labour demand curve depicts the number of workers that businesses seek to hire at any given salary or wage rate. If wage goes up, so as the quantity demand of labour. First, from the technology factor, technology to supports labour will raise demand for specific types of work, causing the demand curve to shift to the right. For example, as the use of word processors and other programming tools has grown, so has the demand for information technology specialists who can troubleshoot network software and hardware difficulties. As technology improves, so will the demand for competent individuals who understand how to use it to boost workplace productivity. Any workers who refuse to adapt to technological change w...
Read more

The Opportunities and Challenges of Economic Integration

 T2: INTRO Maksud: Teori komersial yang secara diskriminasi menurunkan atau menghapuskan sektan perdagangan kepada negara anggota kesepakatan. Darjah integrasi ekonomi terdiri daripada pengaturan perdagangan keutamaan kepada kawasan perdagangan bebas, kesatuan kastam, pasaran bersama, dan kesatuan ekonomi. 1) Free Trade: Perdagangan bebas ialah apabila negara anggota mendapat keistimewaan untuk menghapuskan semua halangan perdagangan tetapi halangan perdagangan kekal dengan bukan ahli yang merupakan pilihan ideal untuk negara maju. Contoh perdagangan bebas ialah Persatuan Perdagangan Bebas Eropah (EFTA) pada tahun 1960 yang bertujuan untuk menggalakkan ekonomi terbuka dan berdaya saing di Iceland, Liechtenstein, Norway dan Switzerland. Tiga tujuan utama persatuan adalah untuk mengawal selia hubungan ekonomi antara empat negara, mengurus ‘pasaran dalaman’ dan membangunkan perjanjian perdagangan bebas di seluruh dunia. Contoh lain seperti Amerika Utara Percuma Kawasan Perdagangan (NA...
Read more

Nothing Important

Trying hard not to cry today. It feels unfair; why does the world seem so unjust? When A gets scolded in front of everyone, suddenly, everyone needs to be considerate because their mental health is unstable. But when B experiences the same thing, it’s brushed off, and people say, ‘It’s normal,’ because B appears to handle it well. But B has feelings too, a heart, a mind, and memories. Now, B is also struggling with depression. Do we really have to wait until someone’s mental health deteriorates before we start to care? Besides, all of this stems from my own weaknesses. I struggle to express myself, so what I try to say is often misunderstood by others. Am I really that foolish? Oh how I want to dissappear today... I feel like a sh*t... Feeling useless, unwanted, uninvited.  Feeling humiliated... Guilty...  But when I look at A, it reminds me of when I was little. How nice it would be to have a place to vent, to share, to cry on someone’s shoulder... I was once laughed at for m...
Read more