Question

the impact of COVID-10 to SMEs (in Malaysia)

Answer 1

The severity of the impact of COVID-19 on companies is unprecedented. Many economies, including Malaysia's, are threatened by poor economic and financial performance, demand cutbacks, supply chain disruptions and knock-on impact of distressed sectors on jobs. In addition to their need for better infrastructure, most companies (83 per cent LLs and 84 per cent SMEs) have highlighted difficulties in their online connectivity and communication with customers and suppliers. Over two-thirds of businesses (69 percent) faced disruption in one form or another, with 53 percent of SMEs and 39 percent of LLs voicing the need for change.

Banks also set up new lending facilities for SMEs,301 in addition to a policy rate decrease.302 Malaysia's central bank declared on 24 March that it was calling for a 6-month moratorium on all bank loans affected by the outbreak, except for credit card balances.

On 27 March, the government announced a second round of support measures taking the overall stimulus to USD 57 billion, two-fifths targeted at (small) business.303 Bank Negara Malaysia (BNM) issued a directive to all banks to offer an unconditional six-month moratorium on all loan/financing repayments effective from 1 April to 30 September 2020.

In this time, loan / financing borrowers / customers who follow the requirements do not need to make any payments, and there will be no late payment fees or penalties levied. On April 6, the government unveiled new steps to support SMEs (RM 10 billion, 0.7 per cent of GDP), which also includes an improved wage support scheme.

The Malaysia Digital Economy Corporation, founded by the government as part of the country's digital strategy, offers Malaysian tech companies an extensive list of digital solutions for SMEs