By Sharina Ahmad
THE Credit Counselling and Debt Management Agency (AKPK) has outlined five proposals to support financially distressed business owners and employees of small and medium enterprises (SMEs) affected by the business slowdown arising from the Covid-19 pandemic.
Its operation general manager Nor Fazleen Zakaria told FocusM that among the measures taken are financial review and counselling, enrolment in debt management programme, delivery of financial education modules, voluntary arrangement service, and lifestyle change programmes.
“SMEs are crucial in moving the country’s quest to become a high-income nation. Individuals and business owners who are affected by the crisis are welcome to seek assistance to solve their financial difficulties. We will help by providing ways to manage it.
“For instance, the asset needs to be liquidated if a business is in financial difficulty and cannot pay its bills. During the financial review and counselling, some of the ways we can assist them are by connecting them to the Human Resource Department, Social Security Organisation’s (Socso) social synergy programme, and other entities,” she explained.
She said some individuals or business owners who have been overleveraged need to restructure their debt. “This situation can be solved through our debt management programme. If you have a credit card, a housing loan that you need to restructure, we can approach the bank and make the monthly instalment lower.”
Nor Fazleen said SMEs contribute about 40% of the country’s gross domestic product (GDP). In the current situation, the companies are adversely affected by the imposition of the movement control order necessitated by the Covid-19 outbreak.
The stimulus package announced by the Prime Minister is a great step to assist SMEs to stay afloat without substantial liabilities and without having to lay off employees.
Recently, Bank Negara Malaysia (BNM) allocated RM5 bil for SMEs’ Special Relief Fund (SFR) and individuals affected by the virus outbreak.
The maximum financing rate is now lowered to 3.5% per annum from 3.75%. The enhanced SRF is available until Dec 31.
However, Nor Fazleen observed that it will be a while before the aid makes a real difference on the ground. In the meantime, SMEs may not be able to pay salaries due to lack of sales and may possibly have to close their business.
“They may resort to using credit cards to support their fixed costs, and only make minimum payments on the cards when due. The inevitable burden from the loans could be devastating down the road,” she said.
As a lead agency that oversees and rehabilitates financially distressed individuals, including sole proprietors, AKPK is equipped to help individuals manage their money wisely — to spend within their means and achieve their financial goals.
AKPK is an agency set up by BNM in April 2006 to help individuals take control of their financial situation and gain the peace of mind that comes from the wise use of credit. — April 16, 2020
