The Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) views with deep concern regarding a much more adverse impact on the economy and businesses following the extension of Phase 1 of the National Recovery Plan, which has ended on 28 June 2021.
Feedback on the ground indicated that many businesses are in dire straits. They are unable to survive through a prolonged lockdown and teetering on the brink of bankruptcies and closing down. The economic devastation will be deeper and more damaging on the society if we continue with the extended Phase 1.
The 28 days of total lockdown nationwide have had dented the recovery pace of domestic economy and many businesses, such as the manufacturing and services sectors. Of the total 442 companies surveyed by ACCCIM, 77.1% of them still concerned about 3Cs (Cash flow, Credit and Costs).
The lockdown has threatened the survival of SMEs and micro enterprises. Low-and middle-income households, individuals and self-employed in the informal sector also suffered financial difficulties. 68.3% of businesses indicated that no confidence in economic recovery for this year. At least more than 60% of companies indicated poorer business conditions, cash flow and debtors’ condition in 2H 2021 compared to 1H 2021.
In this regard, ACCCIM urges the Government to make modifications to the Phase 1 extension to support some level of economic and business activities as well as our daily lives. Vaccination is the only solution to help build protection and return to normalcy.