MEDAC will refine launch of microcredit payment mechanism
KUALA LUMPUR,. The Ministry of Entrepreneur Development and Cooperatives (MEDAC) will refine the implementation of the microcredit payment mechanism.
Minister Datuk Seri Wan Junaidi Tuanku Jaafar said the initiative is expected to highlight micro-enterprises in the non-essential sectors such as spa and wellness, reflexology, barber shops, post-natal care, event management, catering, bookshops and stationery that have been greatly impacted by the coronavirus lockdown.
“Enterprises in these sectors have been facing serious challenges as they were among the earliest to be locked down and the last to be allowed to operate, from Movement Control Order 1.0 until now,” he said in a statement tonight following Prime Minister Tan Sri Muhyiddin Yassin’s unveiling of the National People’s Well-Being and Economic Recovery Package (PEMULIH).
He added that MEDAC was thankful that the government has allocated RM100 million to TEKUN, an agency under the ministry, to help micro enterprises recover and also for RM20 million to help the cooperative sector.
“Apart from that, the extra payment initiative under Special Prihatin Grant 4.0, the extension of the Wage Subsidy Programme 4.0, moratorium facility and the extension of electricity bill discount will help to lessen the burden of entrepreneurs,” the minister said.
MEDAC is committed and ready to ensure the launch of various initiatives to help affected entrepreneurs.
Meanwhile, in a separate statement, the Small and Medium Enterprises Association (SAMENTA) has welcomed the decision to grant a six-month loan moratorium to all individuals and micro enterprises.
The association’s policy and government relations chairman Datuk William Ng, however, has appealed to the government to extend the moratorium for SMEs automatically instead of the banks deciding on the matter on a case by case basis.
“Most SMEs are having difficulty getting a moratorium because banks have blacklisted borrowers who are behind in their payments. This has caused many applications by SMEs to be rejected, in fact before their applications are even put into the system,” he said.