KUCHING: The number of reported businesses that have closed down due to the pandemic is inaccurate.
Ministry of Entrepreneur Development and Cooperatives (Medac) has come forward to clarify this inaccurate report on the number of businesses which have closed their operations amidst the Covid-19 situation.
Its Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar was referring to a report by a news portal on Nov 11 which stated that about 30,000 small and medium enterprises (SMEs) have closed their operations since the implementation of the movement control order (MCO) due to Covid-19 which began in March.
“Based on the written answer in the Parliament on Nov 5, Medac had stated that, based on statistics released by the Companies Commission of Malaysia (SSM), there was a total of 9,675 companies and businesses closing their operations from March 18 to June 9 while between June 10 and September 2020, approximately 22,794 companies closed down.
“This statement indicates what happened during the period March to September, as it does not only refer to SME companies that close operations, but covers all registered companies with SSM,” he clarified on Friday (Nov 13).
Despite that, Wan Junaidi revealed that from April 1 to July 19, SSM’s data also showed that a total of 82,555 new businesses had been registered.
“This shows that the current situation of Covid-19 does not prevent anyone from venturing into business, but they are following the current trends and needs of using e-commerce platform as their marketing medium for supplying products or services,” he explained.
Medac has always taken proactive initiatives and recommends that entrepreneurs also need to think positively in facing the Covid-19 pandemic, he also assured.
“The entrepreneurs must prepare themselves and their businesses with the sharing of knowledge provided (without any fees or charges) by government agencies to prepare themselves for new ways and methods of doing business.
“They must also adapt their business to the new norms of life, empower business through digitalisation and intensify their promotional strategies.
“Additionally, SMEs are advised to maintain customer information data, relationships with customers and the good reputation of the product brand, in order for their products to be remembered by their customer after the MCO period has ended,” he added.
