SMALL- and medium-scale enterprises (SMEs) welcomed the government's assurance on the availability of financial assistance, but noted that they had hoped for direct measures to boost consumer spending.
The SME Association of Malaysia said an increase in consumer purchasing power would have a direct impact on the domestic economy.
"We were expecting the government to provide quick funds to inject into the domestic market.
"There is need for a quick reaction to awaken the market," its secretary-general Lee Teck Meng said.
Lee said the RM60 billion mini-Budget addressed medium- to long-term measures and did not address the slowdown experienced by certain sectors of the SMEs.
"We were expecting something more immediate," he said.
He said the retail, hardware and consumer segments, including food industry, have been hard hit by the slowing economy.
"Those segments need measures that will have direct impact," Lee told Business Times, adding that more than half of its members are in the consumer business.
The second economic stimulus package entails setting up a RM5 billion Working Capital Guarantee Scheme to provide working capital to small companies with shareholder equity below RM20 million.
The government said it will guarantee 80 per cent of the scheme and the balance 20 per cent by the financial institutions.
The maximum loan amount will be RM10 million, with a maximum repayment period of five years.
The Malay Chamber of Commerce Malaysia (DPMM) expressed its hopes that the measures will make it easier for SMEs to obtain funding from the financial institutions.
DPMM deputy president Datuk Muhammad Muhiyuddin Abdullah said banks should cooperate with the government to provide financing quickly.
He was also positive on the government's RM5 billion Industry Restructuring Guarantee Fund (IRGF) Scheme for loans to increase productivity and value-added activities as well as the application of green technology.
"This will help many more companies initiate cost-saving measures vital in today's challenging economic environment," Muhiyuddin said.
The maximum loan for the IRGF Scheme is RM50 million, to be repaid within 10 years.
0 comments:
Post a Comment