THE National Recovery Council (NRC) has recommended the government streamline all financial aid to small medium enterprises (SMEs) so it could be executed systematically and its resources properly used, Muhyiddin Yassin said. 

“The council is of the view the government has provided various financial assistance in the form of grants and loans to micro SMEs through various government financing agencies and the national banking system.

“In this regard, the council recommends that all financial assistance be streamlined so it can be implemented systematically to increase the use of resources to be more optimal, targeted and based on needs,” the NRC chairman said.

On January 4, SME Association of Malaysia said about 15% of micro SMEs had temporarily closed due to a lack of funds stemming from the Covid-19 epidemic. 

Its president Ding Hong Sing said there are 1.15 million SMEs, which account for 97.2% of businesses in Malaysia. 

Since 2015, SMEs have increased by an average 4.9% each year. Eighty per cent of them are in the service industry. In 2020, this figure increased to 85.5%.

The Entrepreneur Development and Cooperatives Ministry announced that 104,748 MSMEs were closed in 2020, affecting 61,010 jobs. 

Last year, an estimated 37,415 MSMEs closed down, affecting 172,200 employees. 

Data from the Companies Commission of Malaysia showed 4,507 new companies were registered in November, October (4,195) and September (4,367).

Ding said micro-enterprises make up the bulk of the sector at 78.4%. Its number grew by 205,504 from 2015 to 2020, placing its annual growth rate at 5.4%. – February 8, 2022.