How a restaurant owner is losing RM100,000 during MCO

PETALING JAYA: Government’s assistance to address the specific needs of the Small and Medium Enterprises (SMEs) has not been forthcoming despite their cries for help, Bangi MP Ong Kian Ming said today.

I have been waiting for more than a week to see if the government would listen to the cries from the SMEs, he said in a statement.

“This is despite meetings with some of the key Ministers including the Minister of Economic Affairs in the Prime Minister’s Department, Datuk Mustapha Muhamed, and Transportation Minister Datuk Seri Wee Ka Siong,” Ong said.

He used eight examples of how the Movement Control Order (MCO) had curtailed business operations among SMEs.

On a restaurant owner of a small restaurant chain located in shopping malls, he said the owner of this Food and Beverage (F&B) business has three outlets.

The owner employs 30 people with 10 at each outlet, who are mostly food preparers and servers.

“They earn around RM3,000 per month including allowances and overtime,” Ong said. “This works out to an overhead of approximately RM100,000 per month including EPF and SOCSO payments.

“The owner chooses not to have delivery services because she does not want her staff to travel to work and risk getting infected.”

She still has to pay a monthly rental of RM5,000 per outlet since the rental not waived by shopping malls which she operates at, Ong pointed out.

“She will not likely be able to take advantage of the RM600 a month subsidy from the government because she has to conserve cash flow and close one outlet and retrench 10 staff.

“She has to incur overhead cost of at least RM100,000 during the MCO without any revenue,” he added.

More examples to come

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