THE government’s enhanced financial assistance and reliefs are much needed not only for now but also for post Covid-19 recovery as it is likely to take at least 6-12 months from containment, stabilisation and recovery before people and businesses return to normalcy.
National Chamber of Commerce and Industry of Malaysia (NCCIM) also said the proposed wage subsidy under the RM250 bil “Pritihan Rakyat” Economic Stimulus Package given to the employers should be further enhanced in terms of the higher amount given and no condition should be attached.
“ Both large companies and SMEs that are currently struggling for sales, revenue and profitability, which was aggravated by the Movement Control Order (MCO),” it said in a statement.
Companies which had already suffered lower sales, would face cash flow problems, particularly for business operating in non-essential services that have to be closed under the MCO period.
Even businesses that appear to be in good financial shape may not be immune, depending on how the situation progresses and how long it takes for demand and supply to return to normalcy.
“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,” it opined.
Hence, NCCIM has appealed to the government for post Covid-19 support as well.
“NCCIM 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.” – March 30, 2020, Bernama
