Report Of 30,000 SMEs Ceasing Operations During The MCO Is Inaccurate

It was reported that a total of 32,469 small-medium and enterprises (SMEs) have shuttered since March, following the implementation of the nationwide movement control order (MCO).

over 30,000 smes have shutdown since the beginning of mcoPhoto via Malay Mail

According to The Star, the Entrepreneurship Development and Cooperatives Ministry quoted statistics by Companies Commission of Malaysia (SSM), that 9,675 SMEs shut their operations during the first phase of the MCO from 18 March to 9 June.

From June until September, 22,794 SMEs have shut down, with August recording the highest number of 17,800 SMEs folding in that month alone.

Meanwhile, in a statement by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) on Friday (13 November) said that instead, 82,555 new businesses had been registered based on the data released by Companies Commission of Malaysia (SSM) from April 1 to July 19.

Its minister, Datuk Seri Dr Wan Junaidi Tuanku Jaafar said: "This shows that the current Covid-19 situation does not prevent anyone from venturing into business, instead businesses are following the current trends and needs of using e-commerce platform as their marketing medium for supplying products or services."

He added that MEDAC has always taken proactive initiatives and asked entrepreneurs to think positively in facing the Covid-19 situation by capitalising on knowledge provided (without any fees or charges) by government agencies to prepare themselves for new ways/methods of doing business.

Entreprenuers also need to adapt their business to the new norms, empower business through digitalization and intensify their promotional strategies, he further added. 

By: Aishah Akashah Ahadiat