How gyms are hit by MCO without govt’s aid

06-04- 2020 06:30 PM

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

PETALING JAYA: A small gym owner and operator can tide over during the Movement Control Order (MCO) as revenue streams are based on subscriptions.

In the case of an owner with three gyms in suburbs of Klang Valley located in shoplots, his monthly overhead is an issue, Bangi MP Ong Kian Ming said today.

The former International Trade and Industry deputy minister was giving this as an example why Small and Medium Enterprises (SMEs) should be given a comprehensive government aid package.

“Because his revenue streams are based on the subscription models (one month, three months, six months and one year), he still has cash flow to sustain his business during the MCO period,” Ong said.

“But because of this subscription model, his business has not dropped by 50% since January 2020. Hence, he doesn’t qualify for the RM600 wage subsidy.

“He still has to pay his electricity bills and also the rental of more than RM10,000 for his three gyms and also the wage bills for his gym manager and six personal trainers (two per gym) which works out to more than RM10,000).

Ong said the owner would likely close one of his gyms after the end of the MCO and let go two of the personal trainers.

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