MEDAC: 49% Of MSME Sector Could Collapse By October, Leaving 7 Million Unemployed
Author Avatar
sme
(Image: Hari Anggara)

The Ministry of Entrepreneur Development and Cooperatives (MEDAC) has warned that 49% of the micro, small, and medium enterprise (MSME) sector could collapse by October 2021 should the current lockdown be prolonged until then. This is equivalent to around 580,000 businesses in total.

Drawing the figures from a survey that was recently carried out, MEDAC further said that if the collapse were to occur, more than 7 million Malaysians will be out of work. It also assumed each worker to have an average of two dependents.

The survey – which polled 6,664 respondents – also discovered that one third of the participants did not receive the various aid measures that were announced by the government. Additionally, 60% of entrepreneurs said that they suffer from at least one form of mental health condition during the lockdown, caused by reasons such as a decline or loss of income, debt and financing issues, and the possibility of closure.  

Meanwhile, more than 90% of entrepreneurs said that they have no insurance, whereas 70% of them do not have a backup plan to rely on in the event of loss of income.

(Image: New Straits Times)

In revealing the survey results, the Minister for Entrepreneur Development and Cooperatives, Datuk Seri Wan Junaidi Tuanku Jaafar commented that the people are caught in dire straits now, and that the right remedial actions to be taken quickly. “If we don’t do something to help them now, I am worried that many of these MSMEs will fail and will not be around to help rebuild the economy one businesses are allowed to open,” he said.

Datuk Seri Junaidi also expressed concern that the failure of these MSMEs will create a domino effect, hitting the societies hard at the core – which may then lead to a more serious social and economic impact. Aside from that, Malaysians are also growing increasingly upset because of the financial issues that they face, as well as the extensive curb on social activities.

“The impact of the lockdown is not only affecting the economic aspect, but the social aspect as well. I am concerned the longer businesses are not allowed to operate, the longer it will take to recover,” said Datuk Seri Junaidi, adding that it is time for the government to look at other holistic measures on how to deal with the pandemic other than lockdowns.

(Source: Free Malaysia Today)

0 0 votes
Article Rating

SHARE

Comments (0)

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
Top Personal Finance News Articles
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 24th November 2021
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Shopee Introduces SPayLater, Lets Users Buy Items Now And Pay Later
Alex Cheong Pui Yin
- 18th January 2021
Shopee has introduced a new payment feature that lets its Malaysian users purchase items and pay for them […]
Post Image
Best High Interest Savings Accounts In Malaysia (October 2021)
Pang Tun Yau
- 6th October 2021
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image