KUCHING: Kuching Chinese General Chamber of Commerce and Industry (KCGCCI) secretary-general Jonathan Chai Voon Tok has commended the National Economic Recovery Plan (Penjana), pointing out that one of the plan’s highlights was the government’s commitment in tackling the problem of unemployment.
He noted that according to Prime Minister Tan Sri Muhyiddin Yassin’s announcement on Friday, the government would allocate about RM9 billion to benefit three million workers through various initiatives, including RM5 billion to expand the wage subsidy programme to cover an additional three months beyond its original three-month time frame.
“Indeed, the existing wage subsidy programme which subsidises up to RM1,200 monthly per employee for three months had been well received,” he told New Sarawak Tribune when contacted on Saturday.
“In fact, the Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) has recently written to our chief minister appealing the state government to come up with a similar wage subsidy programme to ease the financial burden of the small and medium enterprises (SMEs) in Sarawak in anticipation of the difficult and challenging business environment ahead,” he said.
Besides, he said, companies that were not allowed to operate during the movement control order (MCO) period and those who had put employees on unpaid leave could also apply for the subsidy, on the condition that the funds went directly to the employees themselves.
Under Penjana, he noted that financial incentives had been put in place to encourage companies to recruit unemployed individuals. He believed the government had realised the extent of gravity if the problem was not properly addressed.
Chai pointed out that the Department of Statistics Malaysia (DOSM) had disclosed on May 14 that the unemployment rate could shoot up to 5.5 percent this year due to the impact of Covid-19.
“The government’s stimulus packages have helped to keep many businesses afloat, thereby saving numerous jobs,” he commended.
He also noted that under the newly unveiled plan, more assistance was being extended to SMEs to ensure that they were able to continue operating, with many funds being distributed through multiple avenues – notably the Penjana SME Financing Scheme, a new loan of up to RM500,000 for each eligible SME.
“Sadly, a lot of needy SMEs were unable to benefit from the Special Relief Fund (SRF) of Bank Negara Malaysia channelled through various commercial banks previously under the Prihatin Package. The funds were snatched up fast and were not sufficient to meet the demand, even though the funds were doubled up later,” he said.
He pointed out that the Economic Stimulus Implementation and Coordination Unit between National Agencies (Laksana) should oversee the processing of the loans to ensure that those who were really in need of the funds could receive the necessary financial assistance.
Meanwhile, Chai lauded the re-introduction of the Home Ownership Campaign (HOC) and the exemption of real property gains tax (RPGT) for Malaysians disposing up to three properties from June 1 this year to December 31 next year.
“The construction and property development sector is the key catalyst to the revival of the economy and the chain effects will be felt and spilled over to many other related sectors such as building materials, hardware, transportation, and even professional services,” he said.
He said that ideally, the exemption of RPGT would be extended to cover all types of properties, especially vacant land, instead of just residential properties in order to rejuvenate the market.
