KUCHING: The Companies Commission of Malaysia (CCM) has recorded 281,781 new businesses registered between March and October this year.
Entrepreneur Development and Cooperatives (Medac) Minister Datuk Seri Wan Junaidi Tuanku Jaafar said that a bulk of newly registered business entities consist sole proprietors and partnerships at 89.3 percent, followed by companies at 9.8 percent and Limited Liability Partnerships at 0.8 percent.
“The official statistics highlighted the fact that the number of new businesses significantly outweighs the number of business entities that ceased operations despite the challenges faced by businesses due to Covid-19 and the movement control orders (MCOs),” he said.
He was responding to an online article published on Nov 11 from The Sun Daily titled ‘100,000 SME put out of business’ yesterday (Nov 16).
“Meanwhile, a survey conducted by SME Corporation Malaysia and Medac on Covid-19 in May and August this year respectively, indicated that a percentage of businesses that have ceased operation is slightly lower in August this year at 1.4 percent compared to 1.6 percent in May this year.
However, Wan Junaidi said the impact of Covid-19 and the MCOs was immediate on businesses, especially SMEs.
“Based on the official data by CCM, between March and Oct this year, a total of 31,190 business entities have filed for cessation across all type of businesses.
“CCM has also taken the initiative to revoke dormant companies by sending notices under section 551 AS 2016 to 35,944 companies,” he said.
He said SMEs form 95.5 percent or 907,065 of business establishments in Malaysia, and they are a heterogeneous group that vary in size, sector, and stages of business lifecycle.
“Therefore, there can never be a ‘one-size-fits-all’ solution. Thus, the government has long realised the need for a strong framework for SME development to garner optimum results from various initiatives to enhance economic growth.
“This is reflected by the establishment of the National SME Development Council which is now known as National Entrepreneur and SME Development Council (NESDC),” he said.
He added that for this year, 211 entrepreneurship and SME development programmes are being implemented with a total allocation of RM12.9 billion.
“As the crisis is unprecedented for Malaysia, the only option that SMEs have is to adapt to the new normal and look for opportunities in adversity,” he said.
He said the government has also been actively engaging with SMEs throughout the ordeal to gauge their most current condition and needs.
“The SMEs should take advantage of this consultative approach to communicate their needs reasonably.
“Every party must assume their part well in order to revive the economy within the shortest time possible,” said Wan Junaidi.