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

06-04- 2020 06:14 PM

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

PETALING JAYA: Bangi MP Ong Kian Ming (pix) used an example of a small manufacturer of non-essential items to illustrate why there could be job layoffs.

He used this example to show government’s assistance to address the specific needs of the Small and Medium Enterprises (SMEs) should be sped up.

This small manufacturer makes what is considered as non-essential items, Ong said in a statement today.

“He employs about 20 people in his operations,” he said. “His production has been completed halted because MITI only approves manufacturing activities to continue for essential industries during the Movement Control Order (MCO).

“This company’s clients are mostly from overseas and as a result of non-delivery, they decided to look for suppliers from other countries.”

As a result, not only has this company lost its revenue for the period of the MCO, but it has also lost key customers for the rest of the year which it probably will not be able to replace even after the end of the MCO, he said.

“It can claim the RM600 per month for most of its factory workers who earn less than RM4,000 a month but with an uncertain business climate, it would prefer to furlough his staff while looking for new customers,” Ong added.

Below are the rest of the examples:

Part 1

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

https://www.thesundaily.my/local/ong-how-a-restaurant-owner-is-losing-rm100000-during-mco-YF2214742

Part 3

How do we expect small hotel operators to go on?

https://www.thesundaily.my/local/how-do-we-expect-small-hotel-operators-to-go-on-JE2215139

Part 4

Small retailer burns RM10,000 to cover costs during MCO

https://www.thesundaily.my/local/small-retailer-burns-rm10000-to-cover-costs-during-mco-NE2215179

Part 5

MCO roadblocks for long-distance bus operator