THE RM15 billion Permai economic aid package announced by the government last week has not addressed the plight of retailers haemorrhaging income due to the new movement control order (MCO), said Retail Group Malaysia.

The retailers’ association said this latest economic aid package did not provide any financial assistance to retail businesses that were forced to close down during the MCO, which came into force on January 13. It will continue until at least February 4.

Retail Group Malaysia managing director Tan Hai Hsin wanted to know why no details were given on loan moratorium extension under the financial package.

“This is critical because the majority of retail businesses have zero income with only some sales for those with online shopping platforms during this lockdown period.

“Meanwhile, the discount on electricity is insignificant when retail businesses use little electricity during this period,” he told The Malaysian Insight.

On January 18, Prime Minister Muhyiddin Yassin announced a RM15 billion fifth economic stimulus package, as most of the country entered their second week of strict movement curbs.

Muhyddin said there were 22 initiatives under the Permai economic stimulus package to combat the Covid-19 epidemic, to look after the people’s welfare, and ensure the survival of businesses.

Tan also questioned the government’s move to categorise some businesses as essential services and allow them to open normally during the MCO.

He said they were not doing any business and were, in actual fact, losing money.

“Many of these ‘essential’ retailers are now open for business with zero or few customers during peak shopping hours.

“This situation is more damaging compared to when they were asked to shut down during the MCO in March.

“As long as they stay open, their costs will be higher compared to when they are closed.”

He added that some of the stores that have been classified essential include: watchmakers, goldsmiths, jewellery shops, toy shops, gift shops, shoe shops, handbag and luggage shops, luxury fashion shops, furniture stores and children’s shops.

Tan also said that the government must give a clear message to people about shopping.

“You tell Malaysians to stay at home, while you allow many retail shops to stay open.

“You restrict the number of passengers per car and travelling distance, while you want shopping malls to stay open.

“The government said that people are allowed to travel to shop for basic necessities only, but non-essential retailers are allowed to open,” he said.

However, he did concede that the Permai stimulus package would help the B40 segment of society – and, to a certain extent, the M40 group – to survive during this difficult period.

“This latest economic aid package provides monetary incentives to purchase basic necessities and daily essential goods.

“At the same time, some monetary and tax incentives encourage Malaysians to work from home.” – January 25, 2021.