The Ministry of Entrepreneur Development and Cooperatives (MEDAC) recently announced their plans to allocate RM452.8 million (US$104m) to assist COVID-19 affected entrepreneur under a business recovery plan to support the stability of the entrepreneurial ecosystem.
This allocation of funds is expected to benefit more than 21,847 SMEs, micro-entrepreneurs, social entrepreneurs, startups, and cooperatives. SMEs are the backbone of the Malaysian economy and have suffered greatly from the economic devastation brought about by COVID-19 and the subsequent lockdown orders that have been taken to contain the pandemic.
MEDAC’s minister Datuk Seri Wan Junaidi Tuanku Jaafar, in a statement today, said MEDAC tabled the Entrepreneur and Cooperative Recovery Plan at a Cabinet meeting on 6 May.
“The recovery plan outlines six key strategies to support the stability of the entrepreneurial ecosystem, revitalise entrepreneurs’ business operations in the near term and ensure that entrepreneurs remain competitive and sustainable. It contains 30 programmes that will be implemented in two phases, namely the immediate measure from May to December 2020 and the medium-term from January 2021 to May 2021,” said minister Wan Junaidi.
According to the minister, a total of RM230.1 million is required for the first phase of the stimulus plan; of which RM175.79 million is for the implementation of six new programmes and 10 existing programmes by utilising the existing allocations under MEDAC and its agencies, while an additional of RM54.31 million is needed to implement 14 new programmes.
The minister also elaborated on the second phase of the plan, which would involve the allocation of RM222.69 million to carry out 19 new programmes and 11 existing programmes.
Minister Wan Junaidi also stated that MEDAC and its agencies have applied for the allocations through the application of funds under the 12th Malaysia Plan (12MP) period.
He also said that MEDAC is currently working together with the Ministry of Finance to develop the Post COVID-19 Economic Recovery Plan and Restart Plan.
“MEDAC is a member of the SME Recovery Support Working Group which focuses on short and medium-term strategies and initiatives to revive affected entrepreneurs and accelerate the country’s economic growth,” he said.
He said MEDAC also proposed an entrepreneurship restart plan with an allocation of RM261.21 million.
“The current and future initiatives are in line with the government’s policy of ensuring that the people, especially entrepreneurs, get the support of MEDAC so that their business operations can continue as normal under the Conditional Movement Control Order (CMCO),” he added.