Why is extending the loan moratorium critical for SME survival?

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Extending the Loan Moratorium is Crucial for SME Survival

The extension of the loan moratorium is considered critical for the survival of Small and Medium Enterprises (SMEs) and micro enterprises, particularly in light of the difficulties businesses face in continuing operations. Employers are seeking this extension as a significant measure to sustain their businesses during a challenging economic period.
Impact of Moratorium Lifting on Business Operations

The cessation of the loan moratorium has presented substantial hurdles for businesses attempting to maintain their operations. This development has made it exceedingly difficult for companies to continue their day-to-day activities, prompting employers to actively seek an extension to mitigate these challenges and ensure business continuity.
Significance of Moratorium Extension for Business Sustainability

Employers are expressing a strong hope for the extension of the loan moratorium, viewing it as a vital tool for sustaining business operations through the current difficult times. This measure is seen as directly contributing to the ability of companies to remain afloat and continue employing their existing workforce, which is essential for overall economic stability.
The Critical Role of SMEs in the Economy

SMEs represent a significant portion of the business landscape, with approximately 60 per cent of members belonging to the Malaysian Employers Federation (MEF) being SMEs. The continued viability of these businesses is paramount to the overall well-being of the economy, underscoring the importance of measures that support their survival and operational capacity.
Calls for Additional Government Support

Beyond the moratorium extension, there are further calls for government intervention, such as tax relief for 2020 assessments. Such relief would provide businesses with additional capital that could be channelled into technological advancements and the creation of new employment opportunities, thereby fostering further economic growth and job creation.

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Why is extending the loan moratorium critical for SME survival?

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