Save MSMEs to prevent ‘magnified’ job losses, Guan Eng urges Anwar
KUALA LUMPUR, May 27 — DAP national advisor Lim Guan Eng has urged Prime Minister Datuk Seri Anwar Ibrahim to prioritise the survival of micro, small, and medium enterprises (MSMEs) to prevent a massive wave of unemployment, following a 21 per cent spike in job losses last month.
In a statement today, Lim, who is also the Bagan MP, noted that while the prime minister has pledged to create alternative employment through IT and AI skills training, such measures may not be enough if MSMEs, the backbone of the nation’s economy, are allowed to collapse.
“Anwar should not forget that MSMEs are a critical source of employment, accounting for 48.7 per cent of the country's total employment in 2024. Should MSMEs collapse, the repercussions on job losses will be magnified many fold,” Lim warned.
The call for intervention follows a report highlighting that 7,057 workers lost their jobs in April 2026, a significant increase from the 5,855 cases recorded in March.
In response to the data, the prime minister pledged swift action, including expanding training in high-growth sectors.
However, Lim argued that the manufacturing sector is already in a “deepening crisis,” citing Federation of Malaysian Manufacturing (FMM) data showing that 68 per cent of companies are facing severe cash flow pressure.
Five proposals for economic relief
To mitigate the impact of rising oil prices, supply chain disruptions, and logistics costs, Lim proposed five specific financial and economic measures.
- Interest-free lifelines: The RM5 billion SME Stabilisation Relief Facility should include an interest-free and collateral-free component for the first RM50,000 of any loan to benefit at least 100,000 distressed businesses.
- Interest moratorium: A one-year moratorium on bank interest payments for existing MSME loans, which Lim noted would only minimally impact the “enormous profits” of the banking industry.
- Regulatory relief: A suspension of recent tax expansions and regulatory costs, including the SST increases imposed last year and the 2 per cent EPF contribution for foreign workers. He also suggested raising the e-invoicing threshold to apply only to businesses with annual sales above RM5 million.
- Foreign worker recruitment: Expediting the recruitment process through a transparent online system with a guaranteed three-month processing time.
- Local product mandate: Implementing a “Buy 50 per cent Local Products” ruling for all investors to protect MSMEs from “cut-throat price wars” and unfair foreign competition.
Lim said that the government must act now to ensure an inclusive and equitable economic environment.
Lim said Malaysia must save its MSMEs to provide a tangible financial relief and economic lifeline to distressed businesses, adding that the current global volatility requires direct intervention and not just training assistance alone.
المصدر: Malay Mail
