In terms of Micro, Small and Medium Enterprises (MSME) development, there are only some sectors that are recovering better than the others. Being the backbone of the country’s domestic investment, they need special attention from the government.

“If Malaysia is to build its economy back better, we must allow even recovery so that the development gaps can also be closed. Recovery is not just for short-term, but it must also be aligned to the longer development goals of this nation as highlighted in the 12th Malaysia Plan of building a more inclusive and a resilient economy,” said Tan Sri Muhyiddin Yassin, National Recovery Council chairman.

National Recovery Council (NRC) series of engagement sessions with the business community

Over the years, NRC has organised a series of engagement sessions, not just in the Klang Valley area but also across the country.

One of the main feed-back received from many people is the impact of the systematic implementation of the National Recovery Plan (NRP) and vaccination programme. Foreign and domestic businesses have praised NRC's transparent and orderly plan as well as the swift implementation of the nationwide vaccination programme which have enable businesses to re-open safely.

“Also in these engagement sessions, business entrepreneurs share the recurring themes of the difficulties of getting foreign workers to work in sectors like the F&B, plantation, the lack of coordinated push for tourism sector recovery and the financing difficulties of MSMEs. All these were the main issues highlighted.”

Muhyiddin explained that close to 98% of registered business entities in Malaysia are MSMEs which contribute close to 40% of the Malaysia’s Gross Domestic Product. Keeping them afloat will not only protect jobs but ensure that the country's economic engine will continue running.

“That was why, when I was Prime Minister, in many of our packages, we included assistance for MSMEs. We even disbursed RM6.08 billion directly to MSMEs under the Geran Khas Prihatin program”

“The policies that the government took when I was Prime Minister are all validated now. The three consecutive quarters of economic growth we are enjoying today are all due to the bold policies we took to safeguard the economy which was systematically re-opened through the NRP,” said Muhyiddin.

High inflation and weakening ringgit

A weak ringgit will eventually lead to serious implications. The current economic situation and the businesses resilience may only withstand this impact of high inflation and weak ringgit for a certain time. If it goes on longer, both the inflationary pressure and weak ringgit combined can wipe out the gains the country has made in the recovery year.

Muhyiddin explained that the government must take proactive measures in managing the recovery process. “We need to look at the bigger picture. If we don’t manage the recovery process well, the impact of the pandemic will linger longer. There will be permanent scarring in some of the economic sectors.”

Creating jobs with decent wages

Muhyiddin urged the government to focus on moving up the value chain through technology that will create higher paying jobs. Use digital solutions like the AI or robotics to increase productivity as this will enable sustained wage growth.

The NRC’s main objective is to ensure that every NRP recommendation can be implemented in a safe, orderly and inclusive manner for the wellbeing of all Malaysians.

The council is refining the NRP 2.0 to ensure with the economy recovering, the focus on people and sectors mostly affected by the pandemic, namely the B40 households and MSMEs, would remain the priority.