By Peter Sibon
KUCHING, Apr 7: With no immediate remedy in sight of the economic impact brought about by Covid-19 worldwide, the Sarawak business community is taking a one-step-at-a-time approach in facing such grim uncertainties.
President of the Federation of Sarawak Chinese Associations (FSCA) Datuk Richard Wee said the economic crisis caused by the virus would have a far-reaching impact not just here in Sarawak but also worldwide.
“After the crisis is over, the economy will take some time to recover. We can’t predict, so we take it one thing at a time,” Wee told reporters after handing personal protective equipment (PPE) to Bomba Kuching at Padungan Bomba station here today.
As such, he described the additional RM10 billion stimulus package for SMEs by Prime Minster Tan Sri Muhyiddin Yassin yesterday as timely.
“Actually the financial assistance for SMEs (small and medium enterprises) is long overdue. The previous one (stimulus package worth RM250 bln) is inadequate for SMEs. So, I think the business community welcomed the move (made by the prime minister) said Wee.
He also hoped that the government could clarify how the assistance could be channelled to the SMEs in Sarawak.
“There are certain parts that need to be clarified by SME Bank or Inland Revenue or MITI (Ministry of Trade and Industry). But overall, it’s well-received,” he said.
Wee also revealed that the Sarawak government had been getting feedback from the various stakeholders on how best to assist them.
“From what I can see during our recent meeting, the state government is very sympathetic. But, the issue faced by SMEs is related to the federal government such as the Inland Revenue, Socso and EPF. All these are federal agencies,” he said.
Wee was commenting on the additional RM10 billion stimulus package for SMEs, on top of the RM250 billion already announced previously.
This included increasing wage subsidies now to a total of RM13.8 billion, which will benefit 4.8 million workers across the country.
“The additional package worth RM10 billion can help lessen the financial burden of the SMEs, and subsequently guarantee that two-thirds of the total workers in this country will continue being employed,” Muhyiddin announced in a special address broadcast nationwide yesterday.
The additional wage subsidy comes on top of the RM5.9 billion announced under the first Prihatin stimulus package unveiled at the end of last month.
With the addition, the RM600 subsidy will be extended to all SMEs that employ up to 200 workers, double the previous package.
Those employing between 76 and 200 people will receive RM800 per worker. Meanwhile, firms that employ no more than 75 people will be subsidised with RM1,200 per worker.
All companies registered with the Companies Commission Malaysia (SSM) and Social Security Organisation (Socso) before January 2020 will be eligible for assistance but with the condition that no workers are laid off for the next six months.
Muhyiddin also announced a special grant worth RM3,000 for micro-businesses. The programme will cost RM2.1 billion and is expected to benefit 700,000 microenterprises.
“All microenterprises registered with Inland Revenue Board, SSM and local authorities will be eligible,” the prime minister said.
The extended package Muhyiddin unveiled yesterday followed strong criticisms by industries who felt left out by the RM250 billion Prihatin stimulus package announced last week.—DayakDaily
