Extra aid to benefit 1 million SMEs

TRADERS are happy that more cash aid is coming under the Prihatin Special Grant (GKP) 4.0 as movement restrictions have drastically affected their rice bowls.

The aid, which will benefit one million small- and medium-sized enterprises (SMEs), was announced by Prime Minister Tan Sri Muhyiddin Yassin as intiatives under the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) assistance package last month.

Malaysian Federation of Hawkers and Petty Traders’ Association president Datuk Seri Rosli Sulaiman said he was happy to hear that the government was giving business owners like himself a RM1,000 lifeline.

He hoped that the aid would not stop at GKP 4.0, but be extended throughout the pandemic.

“This is good and would help traders, especially the small scale ones, in their day-to-day businesses. “We, however, hope that when the cases come down to around 2,000 infections a day and the restrictions are lifted, petty traders and SME entrepreneurs can be given at least RM3,000 as a grant to revive their business and reinvigorate the economy,” he said, on behalf of the 700,000 hawkers and petty traders nationwide that the federation represents.

Seri Petaling Pasar Malam Association chairman Frankie Cheah said the cash, split in payments in September and November, would be helpful to the B40 traders who make up at least 40 per cent of the 10,000-odd pasar malam traders in Kuala Lumpur.

“It would help to sustain the elderly traders, aged between 60 and 75, who make up around 30 per cent of the pasar malam traders.

“But I hope that this aid can be topped up to RM1,000 for every month they stay at home, to help them sustain their livelihood during this difficult time.”

The government recently agreed to disburse additional payments of RM1,000 under GKP 4.0 to eligible recipients.

Muhyiddin said those eligible would receive their first payment of RM500 in September and RM500 in November. He said this was expected to help around one million SME entrepreneurs, particularly barbershop operators, workshop owners, bakeries, healthcare centres and others, in terms of cash flow to ease their monthly commitments.

Meanwhile, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the RM500 aid under GKP 3.0 announced via the Pemerkasa Plus package would be credited from yesterday to SMEs and micro enterprises in phases.

He said the payment was in addition to the RM1,000 assistance credited to the companies’ bank accounts that were registered in the GKP system in mid-June this year.

“The payments, which involve almost RM500 million, will be credited directly to their accounts.

“Subsequently, under Pemulih, which was announced on June 28, an additional payment for GKP 4.0 of RM500 will be channelled to existing and new recipients in September and November 2021, respectively,” he said in a statement on Monday.

Tengku Zafrul said for micro SMEs that had not received any GKP assistance, the registration for GKP 4.0 would be opened from July 15 to 31 this year.

The total allocation that has been channelled and will be distributed to almost one million micro SMEs under GKP amounted to RM6.08 billion since the Covid-19 pandemic hit the country.

Tengku Zafrul said the government was hopeful that the continuous direct assistance channelled to micro SMEs would reduce their burden, especially for businesses that were not allowed to operate.

“Besides GKP, there are many more initiatives that micro SMEs can use for the long-term planning of their business recovery.

“This includes soft loans for micro SMEs totalling RM2.9 billion through Bank Simpanan Nasional, Agrobank, Mara, SME Corp, the Malaysian Islamic Economic Development Foundation (YaPEIM) and the National Entrepreneur Group Economic Fund (Tekun).”

Soft loans for SMEs and micro SMEs are also available under Bank Negara Malaysia amounting to RM8.6 billion and this included an additional fund of RM2 billion via the Pemerkasa Plus package and another RM2 billion through Pemulih.

Source: NST