KUALA LUMPUR, April 11 — DAP veteran Lim Guan Eng today said a proposal containing five emergency measures had been submitted to Prime Minister Anwar Ibrahim to help Malaysia’s MSMEs weather the global economic crisis.

Lim said the proposal, submitted during the Pakatan Harapan presidential council meeting on April 8, included a moratorium on interest payments for existing business loans until the end of the year.

“The Malaysian government is their only hope to ease the cost burden on MSMEs and generate business activity so they do not have to shut down at the end of this year,” he said in a press statement.

“I refer to the ‘survival mode’ faced by 1.1 million MSMEs following the war in the Middle East, which triggered soaring oil prices,” he added.

Another measure in the proposal was for Putrajaya to roll out RM5 billion in interest-free, unsecured loans for 100,000 MSMEs, or RM50,000 for each eligible business.

He also called for the government to suspend additional cost burdens such as the Sales and Service Tax expansion, e-invoicing measures, and the 2 per cent Employees Provident Fund contribution for foreign workers.

A further measure in the proposal was to require local and foreign investors to source 50 per cent of supplies from Malaysian manufacturers, unless the goods were unavailable locally.

The proposal also called for bureaucracy and strict enforcement measures to be relaxed during the crisis period.

Lim cited volatility in raw material prices, supply chain disruptions, and rising shipping and logistics costs as key challenges.

Lim said many raw material suppliers were now refusing to extend one- to three-month credit terms, instead demanding upfront cash payments from businesses.