Saturday, January 23, 2021

Saving Jobs in MCO 2.0: 6 Months Automatic Loan Moratorium and Wage Subsidy similar to that given in MCO 1.0


Saving Jobs in MCO 2.0: 6 Months Automatic Loan Moratorium and Wage Subsidy similar to that given in MCO 1.0

1.         Even though the MCO 2.0 has just been extended, Malaysians have yet to see a decrease in the number of Covid cases. Investors’ confidence, both domestic and foreign hitting rock bottom and the stimulus package Perlindungan Ekonomi & Rakyat Malaysia (PERMAI) announced by the Prime Minister on 18 January 2021 is like a drop in the bucket in cushioning the impact of MCO 2.0 and the Emergency. 


2.         Unemployment is soaring. If there are no other aggressive measures, more SMEs will go under, leading to more job losses. To prevent this from taking a nosedive, we urge the government to urgently:


(a) impose automatic loan moratorium for 6 months for all similar to that introduced during MCO 1.0. This can remove anxiety and bureaucracy almost immediately. SMEs/individuals which are not affected can continue with their existing loan repayment. 6 months automatic loan moratorium will improve cash flow in the economy hence creating economic activities. Individuals and SMEs will have more cash at their disposal, which in turn will help to improve the bottom line for all businesses, encouraging them to keep and maybe increase employment (instead of cutting jobs) as they work through this pandemic. 


(b) to increase the PERKESO wage subsidy of RM600 per worker to a higher amount (for those earning below RM4000) and to extend it for at least 6 months. The current RM600 subsidy for one month only is insufficient as the aftermath of MCO 2.0 and the Emergency are still in the process of unveiling itself for some sectors. 6 months wage subsidy will greatly encourage employers not to resort to cutting jobs and help carry them through half of this year as they face reduced sales and cash flow. For some, it may also encourage them to start recruitment again. 


3.         This is an extraordinary time. The government should take extraordinary measures to save jobs. The full consequences of rising unemployment may hurt the nation in ways no future stimulus package can aid. The Perikatan Nasional government has already lost out to our ASEAN neighbours in their competitiveness to attract foreign investors because of sheer incompetence, inefficiency and political instability. Further denial and stubbornness to do more for the business sector is one more nail in the coffin for our bleeding economy.


1. Darell Leiking (MP Penampang)

2. Syed Saddiq (MP Muar)

3. Mohd Azis Jamman (MP Sepanggar)

4. Hannah Yeoh (MP Segambut)

5. Yeo Bee Yin (MP Bakri)

6. Baru Bian (MP Selangau)

7. Datuk Rozman Bin Isli (MP Labuan)

8. Salahuddin Ayub (MP Pulai)

9. Amiruddin Hamzah (MP Kubang Pasu)

10. Teo Nie Ching (MP Kulai)

11. Isnaraissah Munirah Majilis (MP Kota Belud)

12. Mahfuz Omar (MP Pokok Sena)

13. Khalid Samad (MP Shah Alam)

14. Tengku Zulpuri Shah Bin Raja Puji (MP Raub)

15. Maria Chin (MP Petaling Jaya)

16. Wong Shu Qi (MP Kluang)

17. Teresa Kok (MP Seputeh)

18. Dr Dzulkefly Ahmad (MP Kuala Selangor)

19. Dr Lee Boon Chye (MP Gopeng)

20. Kasthuriraani Patto (MP Batu Kawan)

21. P. Prabakaran (MP Batu)

22. M. Kulasegaran (MP Ipoh Barat)

23. Chong Chieng Jen (MP Stampin)

24. Nor Azrina Surip @ Nurin Aina (MP Merbok) 

25. Sivarasa Rasiah (MP Sungai Buloh)