MP SPEAKS | Prime Minister Anwar Ibrahim has promised to create alternative employment opportunities to address recent job losses, including expanding skills training in information technology (IT) and artificial intelligence (AI).
A total of 7,057 workers lost their jobs in April 2026, a 21 percent increase from 5,855 in March.
Anwar should not forget that micro, small and medium enterprises (MSMEs) are also a critical source of employment, accounting for 48.7 percent of the country's total employment in 2024.
Should MSMEs collapse, the repercussions on job losses will be magnified manyfold. The Federation of Malaysian Manufacturers (FMM) stated recently that Malaysia’s manufacturing sector is not just facing a crisis but a deepening crisis.
Sixty-eight percent of companies are facing cash flow pressure, with 13 percent stating that it is severe enough to affect their ability to pay suppliers.
Furthermore, Anwar has not done enough to help MSMEs overcome the current global economic crisis caused by the hike in oil prices, supply chain disruption, rising logistics costs and raw price volatility.
The RM5 billion Bank Negara Malaysia's SME Stabilisation Relief Facility announced by Anwar to assist MSMEs must provide an interest-free and collateral-free component for the first RM50,000 portion of the loan.
There should also be a one-year moratorium on interest payments for all existing loans.
In summary, the government must implement the following five financial and economic relief measures to save MSMEs and promote an inclusive and more equitable economic environment.
Giving RM5 billion loans of RM50,000 to each MSME that are interest-free and collateral-free will benefit 100,000 MSMEs, providing a tangible financial relief and economic lifeline to distressed businesses.
Alternatively, if there is a RM 200,000 loan, give the first portion of the RM 50,000 interest-free to MSMEs.
A moratorium on bank interest rate payments for the existing loans of MSMEs for one year, which will only put a small dent in the enormous profits of the banking industry.
Remove compliance cost constraints by imposing a moratorium on expansion of taxes and regulatory requirements through suspending increases in the sales and service tax imposed last year (further exempt SST for elderly care services), increasing the e-invoicing threshold to apply only to businesses above RM5 million in annual sales and suspending two percent Employees Provident Fund contributions for foreign workers, effective since late last year.
Expedite and simplify recruitment of foreign workers through an online application that is simple, transparent and efficient, with approval for processing within three months.
Impose a buy 50 percent local products rule for all local and foreign investors to ensure that our MSMEs are not priced out by cutthroat price wars and unfair competition from foreign companies.
LIM GUAN ENG is Bagan MP.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
