Medac: Closure of 30,000 SMEs since MCO is inaccurate

Dato Sri Dr Wan Junaidi Tuanku Jaafar

KUCHING, Nov 13: Ministry of Entrepreneur Development and Cooperatives (Medac) has rebutted a news report stating that more than 30,000 small and medium enterprises (SMEs) have closed their operations since the implementation of Movement Control Order (MCO).

Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar, in a statement today, stressed that the report published by a news portal was not accurate.

Referring to the written answer in Parliament on Nov 5, he explained: “Based on statistics released by the Companies Commission of Malaysia (SSM), the total number of companies and businesses closing their operations from March 18 to June 9, 2020 is 9,675 companies and for June 10 to September 2020, the number is approximately 22,794 companies.”


“This indicates what happened during the period March to September, as it does not only refers to SME companies that close operations, but covers all the registered companies with SSM,” he added.

However, Wan Junaidi also pointed out that based on the data released by SSM, a total of 82,555 new businesses have been registered between April 1 and July 19, 2020.

“This shows that the current situation of Covid-19, does not prevent anyone from venturing into business, but they are following the current trends and needs of using e-commerce platform as their marketing medium for supplying products or services,” he said.

Medac, he assured has always taken proactive initiatives and encouraged entrepreneurs to think positively in facing the challenges brought about by the Covid-19 outbreaks.

“We urge entrepreneurs to prepare themselves and their business with sharing of knowledge provided (without any fees or charges) by government agencies to prepare themselves for new ways and methods of doing business.

“Adapting their business to the new norms of life, empower business through digitalisation and intensify their promotional strategies,” he added.

Wan Junaidi also advised SMEs to keep record of their customers’ information for future reference as well as to maintain good customer services and continue to build good branding as it is important to make a lasting impression on consumers. — DayakDaily