The effort to rejuvenate the economy praised
PETALING JAYA: Economists and financial experts see the Ministry of Internal Trade and Consumer Affairs’ decision to allocate RM10 million to the Malaysian Sales Program campaign as an effort to rejuvenate the national economy through micro, small and medium-sized enterprises (MSMEs).
The government has also allocated RM300,000 for sales promotions to Jalan Tuanku Abdul Rahman in collaboration with Aidilfitri.
Economists said the incentives were an opportunity to promote local traders after two years of movement restrictions and would ensure price stability for goods and services.
AmBank Group Chief Economist and Secretary of the Economic Action Council, Dr Anthony Dass, said efforts to address MSME challenges were critical as 97.4% of all business establishments in Malaysia last year were MSMEs.
“Coming out of the Covid-19 pandemic, we are seeing data that indicates these business segments are the most impacted compared to larger businesses due to lack of resources and lower margin.
“Micro and small businesses are the hardest hit by the pandemic and at present they are still unable to fully recover.
“MSMEs contribute around 40% of the economy and are the biggest employer in the country. Thus, every sen spent on MSMEs will allow them to reinvest in their business. »
Dass urged the ministry to also check prices and avoid the use of intermediaries, which would increase profit retention.
“It’s not the only way, but it’s one of the many ways to stimulate the economy. The ministry can control prices, target subsidies and remove approved permits to cut out the middleman so that (producers and) retailers can make huge profits and households can meet the rising cost of living” , did he declare.
Chief Economist of Bank Islam Malaysia Bhd, Dr. Mohd Afzanizam Abdul Rashid, said the move will revitalize the financial stability of MSMEs, which have been badly affected due to the effects of the pandemic.
However, he said that strict compliance with current legislation is necessary to ensure price stability for products and services.
“It seems that the authorities are subsidizing companies for their promotional activities. I guess if businesses are like small traders, micro and medium enterprises, then grants can help boost their sales campaigns.
“There are various incentives provided by the multiple agencies. But it’s a matter of how quickly and efficiently these incentives can be delivered to the qualified recipient.
“When it comes to the rising cost of living and inflation, effective monitoring and the ability to remedy problems are perhaps the key elements to ensuring that the prices of goods and services are reasonably stable,” a- he declared.