ACCCIS appeals for more aid for SMEs

 

While we hailed the 2021 State Budget as inclusive for looking after the welfare of the people especially the B40 group and the continuing efforts to hasten the development in rural areas to bridge the development gap between the urban and rural areas, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) is of the view that Sarawak government should intensify its efforts in providing more support and aid to the SMEs in the state in midst of fighting the outbreak of the pandemic.

We could not agree more with the Chief Minister that 2020 is indeed a very challenging year with the world confronting with a health and economic crisis never experienced before. The outbreak of COVID-19 has created tremendous global economic shock, leading to the worst recession and collapsing of global activities. Consequently, most local business operators are struggling to keep their business afloat and with the rising number of new cases of Covid-19 recorded around the country recently, their future looks even more gloomy and uncertain.

In facilitating the recovery of businesses and SMEs that have been severely hit by the pandemic, certain measures will be continued to be implemented by the state government under the 2021 Budget including Sarawak Micro Credit Scheme that will provide financial assistance to entrepreneurs for their business expansion and diversification. This initiative has been implemented since the beginning of this year with an allocation of RM37 million. Under the 2021 Budget, another RM50 million will be provided for this scheme.

While we applauded the commitment of the state government in helping the micro or small enterprises with such relief facilities ranging from RM1,000 to RM50,000, we would also like to appeal to our state government to make available facilities with bigger quantum of at least RM250,000 to help the medium enterprises in the state as only financial assistance of more realistic amount could help the medium enterprises to survive in such challenging and difficult business environment.

As an organization representing nearly 5000 SMEs in the state, we would like to express our gratitude towards the Special Relief Fund (Interest Subsidy) scheme provided by the state where the SMEs will enjoy interest free loans over three and a half years. This year, a sum of RM17.3 million is expected to be disbursed to the participating banks while under the 2021 Budget, another RM19.0 million will be allocated. This scheme is uniquely provided only for our local SMEs and expected to benefit more than 40,000 SMEs throughout Sarawak.

To intensify the assistance or aid provided to the business community in the state, we would also like to propose to the Sarawak government to continue with the Wage Subsidy Program (WSP) under the Prihatin Economic Stimulus Package of the federal government which will end in December for those businesses which suffered a drop of business of 30 percent or more, for another 3 to 6 months. The WSP has proven to be the most effective measure in keeping the businesses afloat and thereby saving the jobs to avoid massive unemployment.

It’s a remarkable achievement for Sarawak to have a projected budget surplus of RM180 million next year. With such strong fiscal position and our formidable state reserve, we would also like to appeal to our state government to provide a one-off handout of RM500 to every Sarawakian in such extraordinary circumstance of the pandemic as we believe such measure would stimulate short-term demand or consumption which will provide positive spillover and multiplier effects that are much needed to revive or reinvigorate our economy.

 

MUKA 10C Utusan Sarawak dated 12th November 2020