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Govt needs to unveil RM200 bln stimulus package to assist SME manufacturers -- FMM

FMM In The News - BERNAMA, KUALA LUMPUR, Saturday, June 12, 2021 - The Federation of Malaysian Manufacturers (FMM) has asked the government to pump a RM200 billion stimulus package, with a RM30 billion direct scal injection, into the economy over concerns that the extension of the movement control order (MCO 3.0) may have a devastating impact on small and medium enterprise (SME) manufacturers.

President Tan Sri Soh Thian Lai said with almost 80 per cent of all businesses falling into non-essential sectors that were not allowed to operate and with only 60 per cent capacity operations allowed for essential sectors, the extended lockdown would certainly cripple the entire manufacturing sector and its contribution to global supply chains.

“With companies in the US and the EU starting to operate at full force, it is imperative that Malaysia, as a key manufacturing hub, has to support these markets as part of their global supply chains.

“It is also feared that the extended  Full MCO is going to have a profound negative impact on investments,  especially  foreign direct investment,  as well as scaring away foreign investors,” he said in a statement today.

Soh asserted that the direct nancial assistance under PEMERKASA Plus in the form of a one-month extension of the Wage Subsidy Programme 3.0, which is only for local workers; a three-month automatic loan moratorium for individuals and SMEs; and a one-month Human Resources Development levy exemption does very little to assist most manufacturing companies.

He said the assistance will not be able to sustain the industry over the extended period of lockdown and post-lockdown.

Hence, he said the industries need a big relief fund to shore up its recovery to avoid the country going into the worst recession which will take years to recover.

Meanwhile,  the  association  gives  its  full  support  and  cooperation  to  the  rollout  of  the  Public-Private  Partnership  Industrial  COVID-19  Immunisation  Programme (PIKAS), under Phase 4 of the National COVID-19 Immunisation Programme, which will kick off on June 16, 2021.

“We  hope  that  the  daily  vaccination  rates  under  PIKAS  could  be  increased  to  300,000  per  day  through  the  Vaccine  Administration  Centre  and  mobile  vaccination trucks.

“In addition, the government should also expedite the nationwide mass testing as part of the Test, Trace and Treat protocol,” he said.

-- BERNAMA

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