Question

The impact of COVID-19 to SMEs in Malaysia

Answer 1

the covid-19 Pande make has left its impact on all sector of the economy including the medium small and micro enterprises MSME's sector.earlier the government has declared the release package for the poor to help them fight the battle against covid-19 and second package is is expected to primary focus on MSME sector. Because of coronavirus covid-19 most of MSME funding come from informal sources and it explain why the the central bank effort to push more liquidity toward the MSMEs and also government has launched various scheme in that regard.

Problem aggravated due to covid-19

Declining revenue:-
MSME's already struggling in term of declining revenue and capacity utilisation in the lead up the covid-19 crisis.

Unavailability of cash:-the total lockdown has raised an issue of the the existence of MSME'S primary due to unavailability of cash with subsequently will result in the job losses.

Lack of labour availability:-
The return of of migrant labourers will create an issue of lack of labour availability.

Loan against collateral:- loan to MSMEs are mostly given against property but in time of crisis property values fall and that inhabits the extension of new loans.

Who is the form of financial distress during this period the central bank of of Malaysia has announced several measures such as a a term loan and easier working capital financing. Some public sector banks have also opened up emergency credit lines for businesses.