What further government support do SMEs need beyond current initiatives?

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SMEs Require Extended Moratorium and Tax Relief for Business Continuity

Small and Medium Enterprises (SMEs) require further government support beyond existing initiatives, specifically an extension of the loan moratorium and the provision of tax relief. While the wage subsidy programme has aided in managing cash flow, its effectiveness is contingent upon the survival of businesses, which has been significantly challenged by the cessation of the moratorium. Approximately 60% of Malaysian Employers Federation (MEF) members are SMEs, underscoring their critical role in the nation's economic well-being.
Extension of Loan Moratorium is Crucial for Sustaining Operations

The lifting of the loan moratorium has presented considerable difficulties for businesses, making it exceptionally hard for them to continue operations. Employers are expressing a strong hope for an extension of this moratorium, as it is perceived as a vital measure to sustain business activities during this period of economic hardship. Without such support, the continued existence of many SMEs is in jeopardy.
Wage Subsidy Programme's Limitations Highlighted

While acknowledging the government's wage subsidy programme as a helpful measure for easing immediate cash flow concerns, feedback from MEF members indicates it is insufficient on its own. The fundamental issue is that the subsidy's benefits are only realised if the business itself remains operational. Therefore, measures that ensure business continuity are paramount.
Call for Tax Relief to Fund Improvements and Job Creation

In addition to extending the moratorium, the MEF is advocating for tax relief for businesses concerning their 2020 assessments. This proposed relief could provide businesses with additional capital. Such funds could then be strategically allocated towards financing technological upgrades and fostering the creation of new employment opportunities, thereby contributing to economic resilience and growth.

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What further government support do SMEs need beyond current initiatives?

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