KUCHING: Those in the informal sector are also considered in the state government’s assistance schemes such as the micro-credit scheme as long as they are cooperative members in their villages, said Assistant Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development Datuk Mohd Naroden Majais.
He said that Chief Minister Datuk Patinggi Abang Johari Tun Openg had stressed that the informal sector such as food stall operators should also be focused on.
“In Sarawak, there are about 46,000 micro-entrepreneurs, including about 10,600 which are informal,” he said during a Sarawak Small and Medium Enterprise (SME) Dialogue titled ‘Covid-19: Recovery and Empowerment of SME Businesses’ livestreamed on Agrobank’s Facebook page yesterday.
He shared a word of advice for entrepreneurs, including those in the informal sector, which the digital economy with its online platform and technology would help to level the playing field.
“This means that it does not matter where the persons are (urban or rural) or the amount they have invested into their businesses. As long as they understand and utilise the digital economy platform, they will have similar opportunities whether they are big or small,” he said.
Meanwhile, Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said that opportunity had been given to those in the informal sector to register and obtain business permits.
He said that in Sarawak, there were many individuals involved in the informal sector which also contributed to the development of the economy.
“In my constituency, some of them only do business for one or two days in a week. Many of them are involved in the sale of agricultural produce, livestock, and fish,” he said.
Academy of Sciences Malaysia fellow Dr Madeline Berma said that in terms of SMEs, mostly the licenced and registered ones in the formal sector were focused on.
She said it was easier for them to get loans as they had licences, compared to those in the informal sector.
“However, in terms of economic contribution, those in the informal sector are also important,” she said.
She pointed out that during the Covid-19 pandemic, the state government had provided assistance to SMEs registered with local authorities.
“Those in the informal sector are likely to be unregistered, so they do not get help.”
From a different perspective, she said that this was a good time for the government to formalise them and ensure that they could contribute in terms of tax, adding that formalisation would also make them more manageable.
She explained that the informal sector was sometimes seen as problematic in urban areas as not many regulations could be imposed on them.
Also participating in the session were Agrobank covering president/chief executive officer Khadijah Iskandar and Grasicili founder Munir Ashim Abdullah.
