Double whammy for distributors of non-essential items

06-04- 2020 06:36 PM

This is the eighth part of 10 examples Bangi MP Ong Kian Ming used to highlight the plight of SMEs.

PETALING JAYA: Distributors of non-essential items not only suffer from logistic setbacks due to the Movement Control Order (MCO), but also from policy confusion among the ministries.

A distributor of non-essential items, mostly to the service sector, employs about 10 people, Bangi MP Ong Kian Ming said today.

“He obtains his supplies from overseas and has experienced some bottlenecks in clearing his stock from Port Klang,” he said in a statement.

“Because of policy confusion among the ministries, he has not been able to transport his goods from his warehouse to his customers.”

The former International Trade and Industry deputy minister was giving examples how the various sectors under Small and Medium Enterprises (SMEs) would suffer without a comprehensive government aid package.

“When he (the distributor) finally managed to fulfil the orders of his customers recently, he was told that he would have to wait until the MCO is lifted before he can be paid since the products cannot be sold to customers during the MCO.

“If the MCO is extended until the end of April or later, he is not sure if he has the cashflow to continue to pay all of his 10 workers even with the RM600 per month wage subsidy,” Ong added.

Below are the rest of the examples:

Part 1

Ong: How a restaurant owner is losing RM100,000 during MCO

Part 2

Ong on why a non-essential items maker would rather lay off staff

Part 3

How do we expect small hotel operators to go on?

Part 4

Small retailer burns RM10,000 to cover costs during MCO

Part 5

MCO roadblocks for long-distance bus operator

Part 6