Association proposes partial operation for SMEs during MCO


KUALA LUMPUR: The small and medium-sized enterprises (SMEs) is proposing for the government to allow SMEs to partially operate during the Movement Control Order (MCO) period in order to generate cash flow.

Malaysian SME Association national president Datuk Michael Kang Hua Keong said many manufacturing companies which are part of the supply chain, even for essential items, have had trouble getting approval to continue their operations during this period.

“This is important for SMEs to survive after Covid-19, if not, traditional SMEs operators will close down their businesses and hand cash are limited.

“The government should allow SMEs doing exports and embark into online business and allow them to partially operate so they can generate some cash sales,” he said in a Covid-19 Stimulus Package for SMEs Talks, organised by the Institute for Democracy and Economic Affairs (IDEAS) today.

Kang said the association is in talks with the Ministry of International Trade and Industry (MITI) to propose a list of non-essential industries which could be allowed to operate during the nationwide MCO.

“The plan (allow certain industries to operate) is to allow them to operate and fulfil their orders especially for exports because many SMEs are in the global supply chain, so they will not lose their contracts and money,” he said.

He added buyers will find other products among Asean markets if local SMEs cannot fulfil their orders.

Meanwhile, Bangi Member of Parliament Dr Ong Kian Ming said there must be an exit strategy for SMEs after the MCO is lifted.

The former deputy minister of MITI said SMEs must be prepared to ensure that they can survive after MCO is lifted.

“The government has clarified four zones depending to the number of positive Covid-19 cases – red, orange, yellow and green and perhaps, for example, the government could allow restaurants and businesses to operate with little restriction in green zone,” he said. – Bernama





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