According to an online survey, only 37.8% of SMEs have sufficient cash flow to sustain themselves through April 2020.
Small and medium enterprises are among the hardest hit following the implementation of the MCO from March 18.
SMEs may benefit from three government facilities under the first economic stimulus package announced on Feb 27 – the Automation and Digitalisation Facility, Agrofood Facility and Micro Enterprises Facility – aside from the automatic six-month moratorium on financing announced by Bank Negara Malaysia .
Most banks, like CIMB Bank Bhd and CIMB Islamic Bank Bhd , have announced that they will not compound the interest charged for the facilities during the period. CIMB is also supporting SMEs in other ways, including restructuring or rescheduling financing installment payments – also eligible for the deferment package – for SMEs to better manage their cash flow.
On top of the financing moratorium, SMEs should make full use of the additional wage subsidies and other benefits launched under the government’s stimulus package of measures for SMEs. While the measures will make it easier for SMEs to deal with employee salaries, businesses can also be proactive in negotiating employment terms with their employees, by consulting and reaching a consensus with employees before implementing pay cuts or unpaid leave during the MCO period. Should any issues arise, either party can refer to the Labour Department for advice.
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