SME Association of Malaysia president Datuk Michael Kang said Budget 2021 is people-friendly but does not benefit small and medium enterprises (SME).
While calling on the government to make adjustments taking SME into consideration, he urged the latter to stay strong.
“Overall, this is a budget for the people but perhaps not so good for enterprises because (I) can’t see any packages aimed at revitalising the country’s economy,” he said.
Kang pointed out that for SME to stay alive and to recover from the Covid-19 pandemic and the resulting economic fallout, the national budget should reflect the government’s 6R measures – resolve, resilience, restart, recovery, revitalise and reform.
“Otherwise, how are SME going to survive, and employ more people? Unfortunately, I don’t see any budget (for 6R),” he was quoted as saying in a report in Sin Chew Daily yesterday.
Kang lamented that SME are facing many problems in the wake of the Covid-19 pandemic and he does not see any solution to ensure their survival.
“SME are hard hit by the Covid-19 pandemic. We had been hoping that this budget would raise their capability to survive (the pandemic), but I don’t this (happening).”
Instead of helping SME in the country, Budget 2021 encourages foreign investors to put their money in Malaysia.
“I hope the government would help SME to explore new markets and increase export, as well as encourage them to keep their capital in the country.”
Kang noted that Bank Negara Malaysia is only providing RM1.9 billion in financing to SME and micro-enterprises facing cash flow problems.
He urged the government to make adjustments in the budget to give SME a shot in the arm instead of allowing them to close shop.
