MY company recently submitted applications for small- and medium-sized enterprises (SMEs) financing under the recently announced Penjana initiative to our banks, Maybank and RHB. To our great disappointment, we learnt that our applications were rejected by both banks.

Our company was incorporated in 2013. We have up-to-date audited accounts. We have paid taxes. We are currently struggling, but still paying our employees full salaries despite a drastic drop to our income due to Covid-19, by working very hard to keep our nose above water.

The only borrowing on our company books is a hire purchase loan from Maybank of a company car purchased less than a year ago. None of our directors borrowed from the bank so we don’t have a credit history nor a rating.

This puts us in a Catch-22 situation. If one never borrowed from a bank, one will never be able to obtain financing under Penjana’s SME programme from the banks. I find this situation extremely counterintuitive to the measures put in place to aid SMEs in these dire times. Already, SMEs have had to adjust to new working norms, reduce operational costs and suffer pay cuts or worse, retrenchment. The Penjana initiative provided hope to SMEs like us, a much-needed lifeline in continuing in uncertain times. So, we were very relieved and welcomed the much-needed support. True enough, banks like Maybank and RHB pushed out various efforts, including 10-minute approvals and online applications. But the reality is very disappointing.

Despite meeting requirements, I find it utterly unacceptable that our application was still rejected. If this is largely the case with other businesses as well, what is the point of this so called “financial support”? To whom do we turn when the situation turns south and is beyond our control? With Covid-19 mounting cases of late, there is understandable fear of another lockdown or partial lockdown, which will dampen consumer and business sentiment and might put the final nail in the coffin for struggling SMEs.

SMEs are the backbone of the nation’s economy. We contributed 38.9% to the country’s GDP in 2019 and employed 7.3 million people, making up 48.4% of the national workforce. However, it is incredibly disheartening that the support and aid provided to us is not reflective of our contribution.

I hope that the government, especially Laksana and the minister of finance, will look into this matter soonest. Call out the banks for not doing their part. Look at their Q1 results – they are all making hefty profits! If SMEs fail to receive much needed aid it could lead to many having to cease operations and this will not bode well for our economy in the long-term.

I urge other SMEs to come forth and share their experiences so that we may have a clear understanding of what needs to be done to help the SMEs who are struggling, but still breaking even, to help them survive and get through this period and continue to contribute to the economy, and even the bank’s profits. – October 9, 2020.

*N.N. reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.