MRCA Event
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How The Government’s 2022 Budget Can Help You Rebuild or Drive Your Business Forward Naz Rahman moderator of the session, speaks to a panel of experts on the dynamics of Budget 2022 and how it impacts micro-SMEs and SMEs.
PANEL SESSION 1 The first panel session featured 3 distinguished speakers namely, Datuk Dr A. T. Kumararajah, Secretary-General of the Malaysian Associated Indian Chambers of Commerce & Industry (MAICCI), Jenny Hoh, Vice President of SME Advisory and Marketing, Credit Guarantee Corporate Malaysia Berhad (CGC), and Yip How Nang, Head of SME Banking, RHB Banking Group. The panellists shared their thoughts and insights on SME financing, the government’s stimulus packages available to SMEs, and the efforts to rebuild the SME landscape with Budget 2022.
Malaysia Retailer Vol 9 No 3
DATUK DR A. T.KUMARARAJAH, MAICCI Talking about the incentives provided by the government in Budget 2022, Datuk Kumararajah says most SMEs are happy and relieved; however, certain areas need more focus with clearer narratives to move from a pandemic to an endemic stage, and to actually anchor the growth story. Despite the government’s efforts, it is uncertain whether SMEs can recover as fast as it is organically needed. Datuk Kumararajah points out that the disruptions that have happened in the last 20 months have either accelerated SMEs’ problems to an unmanageable level, or have pivoted them
into new business models or digitalisation which has enabled them to survive. However, the primary issues of access to credit and cashflow have especially plagued the micro-SMEs. From the RM530billion stimulus packages provided by the government, only 38,000 micro-SMEs and SMEs have benefitted from around RM12.5billion in the last 20 months. Datuk Kumararajah explains that this is because conventional financial and development financial institutions (DFI) are not having any different approach to the credit risk of customers. They are still taking into consideration cash flow and the ability to pay back. He pointed out that another issue that’s not taken into consideration in the new budget is that 30% of the SMEs have shut
