Traders in Kuala Lumpur at the end of the first day of MCO 3.0 which came into effect May 25, 2021. ― Picture by Hari Anggara
KUALA LUMPUR, June 23 — Klang MP Charles Santiago has decried the Perikatan Nasional (PN) government’s lack of political will to assist community-based businesses, which do not fall under the small-medium enterprise (SME) category, by regulating banks amid the Covid-19 pandemic.
During an online press conference with various community-based businesses groups, the DAP lawmaker said that banks should focus on assisting these businesses instead of making huge profits.
“The government lacks the political will to regulate banks, especially at a time of national pandemic and loss of thousands of businesses.
“And most banks’ profits run into the billions and are (government-linked companies) GLCs.
“Banks at this time should not be looking at making huge profits. Their focus is to support SMI, especially small traders who are the backbone of the economy,” he said during the press conference.
He added that most struggling businesses, such as pharmacists, hairdressers, restaurants and hawkers, depend on their local communities and vice versa.
“It is obvious that in the last year-and-a-half, most of these businesses were running at a loss. And supported by savings and borrowings.
“The situation has worsened now. Massive closures and depending on Ah Long (loan sharks) have become a norm and this is not healthy
“The government needs to recognise that SMI and small community businesses are the life wire of any economy. If appropriate support does not come shortly, the impact on the economy will be devastating. And not to mention, job losses and family quality of life,” he added.
Echoing Charles, Malaysian Muslim Restaurant Owners Association (Presma) vice-president Abdul Mukhtahir Ibrahim revealed that approximately 1,500 restaurants have shut their doors for good since the pandemic started.
“Approximately, 1,500 restaurants under our association have shut down due to the pandemic. And those are to my knowledge. What about others?” he said.
Also present during the press conference, Malaysian Hairdressing Association (MHA) chairman Michael Poh said that the government’s decision to only allow basic salon services has affected sales by almost 70 per cent.
“Even before this, we suffered since the government only allowed basic haircutting services, and now we have to halt our service. It is getting worse for my community.
“It’s not fair since we are not the ones who are contributing to the number of (Covid-19) cases but we are the ones who have to close our shops,” he said.
Addressing the situation, Charles proposed a rental relief fund with an allocation of RM1.7 billion that can save more than 59,000 businesses and 590,000 jobs.
“Therefore, it is important that a special committee on rental relief fund is set up between the Ministry (of Finance) and small businesses without delay, to synergise the existing scheme and work out a dynamic rollout mechanism,” he said.