The Malaysian Insight

PUTRAJAYA must introduce a fund to help businesses with their rent amid Covid-19 disruptions to operations, said Klang MP Charles Santiago.

Charles said relief efforts should be targeted at micro-SMEs, which were finding it hardest to stay afloat.

The DAP lawmaker said many micro SMEs owners had resorted to borrowing from illegal lenders to pay their rent and their employees.

“We propose that the government allocate RM8,000 a month to each micro-SME for six months,” he said in an online press conference today.

“For the big players who have been in the industry more than 15 years, (sustainability) should not be a problem as they would probably have enough funds to keep the business running.”

He added the estimated RM1 billion cost of the aid could come from the RM20 billion Covid-19 relief fund that would be tabled in parliament next week.

Entrepreneurs who participated in the press call welcomed the idea, which they said would help them to maintain their business. 

“My rent per month is about RM4,500 and although my landlord has given me a 30% discount, I am still not able to pay as business has dropped a lot,” said Diccam Lourdes, who owns a tailoring and clothing boutique in Brickfields.

He said business had dipped about 70% since the movement control order was issued in March. 

He said he had been forced to lay off two of his five workers.

“If rent aid is not forthcoming from the government, I will have no choice but to shut down as I cannot afford to pay the rent,” said Diccam, who said he owed RM32,000 in rent arrears.

Malaysian Hairdressers Association chairman Michael Poh said members were struggling to pay rent amid the Covid-19 epidemic.

“When we reopened on June 10, businesses had dropped by 50-70%. That was because we were only allowed to allocate one hour to each  customer.

“We make money mostly from perming and colouring treatments, which takes about two to three hours,” he said.

The association has about 21,820 members, which contribute about RM13.5 billion yearly to the economy, he added.

Concerns about rent were also raised by the Malaysian-Singapore Coffee Shop Proprietors’ General Association.

“The biggest issue for the association members is rent; some of them have to pay RM30,000 a month,” said association president Ho Su Mong.

“In April, a few members called me to tell me they had to close shop as they could not afford to pay the rent. This was just a month into the MCO.

“The association raised about RM1 million to help them but we can’t keep raising funds for everyone – all our members are suffering.” – December 11, 2020.