The government's additional RM10 billion stimulus package for the small and medium-sized enterprises (SMEs) is comprehensive and will certainly go a long way in reducing the pains suffered by many entrepreneurs in the hard-hit sector, according to academicians.
University Malaya Faculty of Business and Accounting Prof Dr Mohd Nazari Ismail said the government has little choice but to extend assistance as many SME businesses are currently mired in trouble following the imposition of nationwide Movement Control Order (MCO) due to COVID-19 pandemic.
"If they are not helped, then the unemployment rate will be too high and it will cause many social and economic problems.
"Politically also, the government has to come up with this package in order to be in the good books of voters," he told Bernama.
However, he noted this latest move will further add to the future economic burden and believed the government might eventually have to change the tax collection system, which may see the re-introduction of the Good and Services Tax (GST).
But even the re-introduction of GST he said, could cause problems because a high tax rate will dampen consumer demand.
"In short, this is only short-term solution actually. It has long term repercussions down the road which we also need to address.
"Therefore, we also need a long term solution and part of that is we have to make sure that the debt level in our country is reduced in the future so that the country can be better able to absorb economic shocks such as the one we are experiencing now," added Mohd Nazari.
Meanwhile, University Tun Abdul Razak's Graduate School of Business lecturer Prof Emeritus Dr Barjoyai Bardai said the extra allocation rolled out by the government should be called 'Humanitarian" package rather than a stimulus package.
"The grant and the loan package is meant for the microbusiness owners to plan for their next launch of their business.
"This is the time whereby SMEs especially in the retails sectors and small producers need to re-examine, reflect and plan for a new re-invented business model to survive in the current or perhaps in future economy when the environment is stable," he said.
The capital and fund are just one part of the equation said Barjoyai as more importantly the SMEs must come out with a viable business model under the new economic model in tandem with today's main them of 'Social distancing'.
"The challenge now is how to conduct business under a 'psychological perspective of social distancing' capitalising the Fourth Industrial Revolution (IR4.0) - as the MCO had actually acted as the catalyst to force us to migrate rapidly into IR4.0," he added.
Prime Minister Tan Sri Muhyiddin Yassin yesterday announced an additional RM10 billion under the Prihatin Rakyat Economic Stimulus Package (Additional Measures) to aid the struggling SMEs, on top of the RM250 billion allocation unveiled on March 27.
The additional measures include increasing the allocation for the wage subsidy programme announced on March 27 by RM7.9 billion to RM13.8 billion.
-- BERNAMA
Bernama
Tue Apr 07 2020
SMEs must come out with a viable business model under the new economic model in tandem with today's main them of 'social distancing'. --fotoBERNAMA/File
[TERKINI] Pelayaran ditangguh lagi, Israel didakwa wujudkan kekacauan
Misi pelayaran Break The Siege Freedom Flotilla To Gaza sekali lagi ditangguhkan ke satu tarikh yang akan diumumkan kelak.
PM Haiti serah surat peletakan jawatan
Ariel Henry serah surat letak jawatan selepas tidak henti berdepan tekanan antarabangsa bagi mengawal kekacauan kumpulan pengganas di negara itu.
Freedom Flotilla to Gaza: Pendaftaran kapal misi di negara lain mungkin memakan masa
Belum jelas sama ada FFC akan beli atau mendaftar di negara yang kecil seperti Panama atau Liberia.
Freedom Flotilla to Gaza: Penangguhan pelayaran taktik Israel gagalkan misi - FFC
Menurut Fauziah, tekanan demi tekanan akan terus diberikan bagi memastikan misi ini gagal sepenuhnya.
Freedom Flotilla to Gaza: Pelayaran sekali lagi ditangguh, Israel didakwa terus cetus kekacauan - FFC
Rejim Israel terus-menerus mahu menghalang pergerakan kapal-kapal terlibat dalam misi ini.
Taikun Vietnam dihukum penjara 8 tahun kerana tipu pelabur AS$40 juta
Tran Qui Thanh didapati bersalah menipu pelabur berhubung pinjaman yang dikeluarkan pada 2019 dan 2020.
Negara perlu beri pengajaran tegas, haramkan Bruce Gilley
Wisma Putra wajar menggesa kedutaan AS tampil memberi penjelasan dan memohon maaf kepada rakyat serta kerajaan Malaysia.
PRK KKB: MIPP jamin PN akan terima undi terbesar kaum India
Punithan berkata, pihak lawan dilihat mula menunjukkan kebimbangan dan rasa takut dengan kekuatan yang dimiliki PN ketika ini.
Akaun Fleksibel KWSP bantu penuhi keperluan kecemasan pencarum - Pakar
Ia merupakan antara alternatif KWSP untuk memenuhi keperluan dan dana kecemasan pencarum dalam mendepani cabaran menjalani kehidupan sebelum bersara.
Trend kenaikan harga emas di Malaysia mungkin berkekalan - Penganalisis
Trend kenaikan harga emas di Malaysia mungkin akan berterusan, didorong oleh gabungan pelbagai faktor ekonomi global dan gelagat pelabur.
Manfaatkan konsep wakaf sebagai sistem perlindungan pada usia persaraan - Penganalisis
Konsep wakaf boleh diteliti sebagai gantian kepada skim pencen dalam usaha untuk mengurangkan beban kewangan negara.
Wujudkan institusi khas kendali subsidi pindahan tunai- Pakar
Kerajaan perlu mewujudkan satu institusi khas sekiranya mahu mengaplikasi kaedah pemberian subsidi kepada rakyat menerusi pindahan tunai.
Cabaran getir ekonomi domestik tidak seteruk 2020
Katanya, tiga sentimen akan mempengaruhi prestasi ekonomi dalam negara iaitu pasaran, keyakinan dan persepsi pengguna.
Tumpuan kepada industri keselamatan makanan kurang menonjol - Prof Barjoyai
Katanya, kerajaan perlu bertindak mengindustrikan sektor pertanian kecil-kecilan untuk membawa masuk lebih banyak pelaburan.
Dwirangkaian 5G disifatkan penyelesaian menang-menang - Penganalisis
Langkah 'memecah' rangkaian tunggal pelaksanaan 5G itu akan membolehkan pemain industri menerokai lebihan 20 peratus liputan.
Tiba masa beralih dari pertumbuhan ekonomi kepada kebahagiaan isi rumah - Barjoyai
Menurut penganalisis ekonomi ini, kebahagiaan dan kesejahteraan tidak dinilai pada kederasan pertumbuhan negara.
Pendapatan syarikat harus diagih lebih bermaruah kepada pekerja - Penganalisis
Majikan di Malaysia hanya agih sekitar 35 peratus keuntungan syarikat kepada pekerja, sementara negara maju kadarnya hingga 60 peratus.
Pengurangan subsidi: Jika tidak hati-hati, inflasi mungkin meningkat ke 11 peratus - Penganalisis Ekonomi
Antara langkah terbaik adalah selaraskan semula pemberian subsidi bagi barangan tertentu, dan pastikan ia benar-benar pergi ke golongan bersasar.
Kapasiti besar hospital kerajaan boleh dimanfaat, tambahan pendapatan - Barjoyai
Wujudkan kelas perkhidmatan pertengahan yang keuntungan daripadanya dapat disalurkan untuk tingkatkan mutu perkhidmatan percuma.
Krisis Rusia-Ukraine dijangka berpanjangan menjadi perang perdagangan - Ahli Ekonomi
Rakyat Malaysia tidak sepatutnya terlalu mengambil berat tentang peperangan ini.