Kuala lumpur: Insurance and takaful coverage for employees are essential strategies that can assist micro, small, and medium enterprises (MSMEs) in retaining their workforce, as highlighted by the Entrepreneur and Cooperatives Development Ministry (MECD).

According to BERNAMA News Agency, Steven Sim Chee Keong, the minister of MECD, emphasized that the increasing costs are exerting pressure not only on workers but also on businesses, particularly MSMEs. He stated that providing insurance or takaful protection for employees, especially regarding medical coverage during illness, can help employers mitigate some of these financial pressures.

Sim further elaborated on a '3A' approach aimed at supporting MSMEs in the banking and financial sector, which includes accessibility, affordability, and advancability. He stressed that MSMEs need greater accessibility, particularly in terms of expedited loan approvals. Additionally, financing solutions must be affordable to ensure they are within reach for these enterprises. Lastly, advancability involves not only offering funding or capital injections but also aiding entrepreneurs in capacity building and business expansion.