Permatang sintok: The Ministry of Entrepreneur and Cooperative Development (KUSKOP) is actively conducting engagement sessions with stakeholders, including micro, small and medium enterprise (MSME) associations, hawkers, and cooperatives, to identify the impact of the West Asia conflict on the domestic economy. Minister Steven Sim emphasized the importance of these sessions to assess the pressures faced by industry players, enabling the government to formulate appropriate solutions.
According to BERNAMA News Agency, global conflicts, including economic tensions, tariff and trade disputes, and armed conflicts, are contributing to global economic uncertainty. These factors are affecting supply chains, which in turn impacts the national economy. Minister Sim stated, "We are engaging with stakeholders to obtain feedback. We want to know what is affecting them and then how we can provide the 'remedy' (assistance). We need to first understand where the 'pain' is before we apply the 'treatment' through various approaches and strategies."
Minister Sim, who is also the Member of Parliament for Bukit Mertajam, mentioned that to mitigate the impact on MSMEs, the government has implemented several targeted measures. One such initiative is the 'PowerUp 10K' initiative, which aims to channel at least RM15 billion to the MSME and cooperative sectors this year. This initiative is designed to boost liquidity and ensure that these sectors remain competitive.
Additionally, RM100 million has been allocated for capacity-building programs expected to benefit 100,000 entrepreneurs nationwide. Minister Sim highlighted that meetings have been conducted with the top management of 16 local banks to urge stronger financial support for MSMEs. The banks have been encouraged to enhance dedicated financial products, ease access to financing, and provide flexibility to businesses facing cash flow issues.
The banks involved have agreed to consider assistance on a case-by-case basis, including refinancing, rescheduling, restructuring, or moratoriums where necessary. Furthermore, KUSKOP has engaged with institutions such as Permodalan Nasional Berhad and other stakeholders to strengthen support for the sector.