Professional services just as affected by MCO

06-04- 2020 06:39 PM

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

PETALING JAYA: Professional services are affected as badly as others by the Movement Control Order (MCO) but government’s aid has not been forthcoming for them.

Taking a mid-sized law firm as an example, Bangi MP Ong Kian Ming said it faces uncertainty due to its billings.

He said a mid-size law practice employs about 20 lawyers, and two-thirds of them earn more than RM4,000 a month.

“Because billings for clients are case dependent, the partners are not sure if the revenue for the period of the MCO would have dropped by 50% compared with January 2020,” Ong said in a statement.

“In any case, because of the wage profile of her lawyers, the RM600 wage subsidy is hardly enough to cover the overheads.”

Difficult decisions will have to be made including retrenchment for non-partner senior lawyers because of their relatively higher wages, he added.

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.

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