THE Malaysian Indian Restaurant Owners Association (Primas) said Putrajaya’s latest incentives will give members some breathing space and help in the recovery after the movement-control order (MCO) is lifted.

Primas president T. Muthusamy told The Malaysian Insight that the government announcement is quite favourable for its operators.

“Most restaurants are only generating about 15% income across the board while those in highly populated areas are getting slightly more.

“Restaurants are definitely experiencing cash flow problems to maintain their businesses,” he said.

Earlier, Prime Minister Muhyiddin Yassin announced an additional RM10 billion as part of the Prihatin economic stimulus package to aid small and medium enterprises (SMEs).

Under the latest package, operators can get BSN micro credit loan of RM50,000 and wage subsidy for five employees totalling RM18,000. 

They will also enjoy exemptions from contributing to the Employees Provident Fund and Human Resources Development Fund – totalling RM8,400, tax postponement of RM5,200 and foreign worker levy discount of RM2,300.

There is also RM300 discount on electricity bill, which will amount to RM34,200 over a three-month period.

Muthusamy said their 1,200 operators, managing 4,000 outlets nationwide will stand to benefit.

“There is also 25% discount on levy renewals. This will help us reduce the volume of our expenditure.

“It is quite favourable for us. We now can get some cash which will help us manage our business after the MCO and keep us going.

“How members manage after MCO will depend on the individual owners.”

He said operators will take between three and six months to recover as there might still virus fears.

“We have to be more optimistic because we don’t know what the situation is going to be post-MCO.

The country is currently placed under the MCO to control the spread of Covid-19.

The total number of cases in the country is 3,793.

Malaysia also recorded one more Covid-19 death today, bringing the total to 62. – April 6, 2020.