Small retailer burns RM10,000 to cover costs during MCO

06-04- 2020 06:20 PM

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

PETALING JAYA: A small retailer in a small town would have burned through close to RM10,000 to cover his costs during the Movement Control Order (MCO) period, Bangi MP Ong Kian Ming said today

This small retailer sells stationary in a rented shop lot in a small town, he said as an example to urge the government to speed up aid for Small and Medium Enterprises (SMEs).

“Revenue has fallen to almost nothing during the MCO,” Ong said. “He still has to pay a rental of RM2,000 during the MCO lockdown.

“He doesn’t sell his products online because most of his customers are from around the area and he cannot compete with the prices offered by the online retailers.”

The operator has five staff who are locals, said Ong, adding that the employer will apply for the RM600 per month wage subsidy but he isn’t sure how to “audit” his sales revenue figures to prove that it has fallen by more than 50% since January 2020.

“He may have to incur some costs to undertake this audit. He hopes that business can pick up after the end of the MCO but he isn’t confident his business can survive.

“He would have burned through close to RM10,000 to cover his costs during the MCO period, not a small amount for a SME owner in a small town. This bring his cash flow to a dangerously low amount.”

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 5

MCO roadblocks for long-distance bus operator

Part 6

How gyms are hit by MCO without govt’s aid

Part 7