Enhance package to save businesses: Huazong
Published on: Wednesday, April 01, 2020
Kuala Lumpur: Federation of Chinese Associations Malaysia (Huazong) President Tan Sri T.C. Goh (pic) on Tuesday called on the Government to speed up necessary improvements to further enhance the “Bantuan Prihatin Rakyat” Stimulus Package.He said this is necessary so as to rescue the private business sector in the country, the small and medium enterprises (SMEs) in particular, which are hard hit by the Covid-19 pandemic and the ongoing Movement Control Order (MCO), and facing extreme financial difficulty to stay afloat.
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“I believe in the last few days the Government must have received numerous feedback and suggestions from the business sector on the urgent need to make necessary amendments and improvements to the said stimulus package.
“This is important to better achieve the Government’s goal and aspiration of helping the people of all walks of life to pull through this extremely difficult and challenging time,” he said in a statement, Tuesday.
Goh said Huazong has also submitted its views and proposals concerning this issue to the relevant government departments and Prime Minister Tan Sri Muhyiddin Yassin, who is also the Chairman of the National Economic Action Council (NEAC), after gathering feedback and proposals from the Chinese business community.
“We believe the Government will do the necessary improvements to further enhance the stimulus package, but it has to be done as soon as possible, in order to achieve its intended purpose of ‘saving the people and the businesses’,” he said.
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He acknowledged that the stimulus package unveiled by the Government on March 27, aimed to better mitigate the devastating impact of the worsening Covid-19 outbreak and the ongoing MCO on the people and businesses, was commendable and should be supported by all Malaysians.
“However, many quarters opined that the Government should place more emphasis and focus on the private sector, especially the SMEs, the public-listed companies and their subsidiaries, to ensure that the stimulus package is really effective in helping them,” he said.
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Goh also noted that among its 10-point proposal to the Government, Huazong called on the Government to establish a Special Committee to quickly conduct a brainstorming session to roll out a “special stimulus package” to better assist and safeguard the private sector, to prevent it from collapsing, in case the MCO has to be further extended after this due to a worsening situation.
He said it is important that the Government must do all it could within its powers to assist the private sector to ensure that it is intact, stable and continue to grow, regardless of the Covid-19 situation.
Otherwise, he said it may result in businesses shutting down and trigger widespread unemployment, which would have a far-reaching devastating effect on the economy of the country and inflict terrible hardship of the people at large.
“Huazong, in its memorandum, also proposed to the Government not to inflict further burden on the borrowers such as imposing the compound interest for bank loans which are guaranteed by Bank Negara, during the grace period, and to consider further reducing the interest rates; to waive the interest for bank overdrafts by the SMEs and to extend the repayment period to at least six months; besides relaxing the conditions of loan application, so as to provide swift assistance to those who are badly affected.
“Huazong also proposed that during this extraordinary time, the Securities Commission should advise Bank Negara to officially instruct the banks to stop squeezing public-listed companies for the margin shortfall, or to commit them to force selling of their stocks. This is in order to allow the listed companies to have sufficient cash-flow to stay afloat during this period of time,” he said.Stay up-to-date by following Daily Express’s Telegram channel.
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