Entrepreneur Development Ministry says report of 30,000 SMEs ceasing operations inaccurate

Minister Datuk Seri Wan Junaidi Tuanku Jaafar said 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. — Bernama pic
Minister Datuk Seri Wan Junaidi Tuanku Jaafar said 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. — Bernama pic

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KUALA LUMPUR, 13 Nov — The Ministry of Entrepreneur Development and Cooperatives has described as inaccurate a report that more than 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.

Minister Datuk Seri Wan Junaidi Tuanku Jaafar said 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.

“This shows that the current Covid19 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 said in a statement today.

Wan Junaidi recaped his written answer in Parliament on November 5, in which the ministry stated that based on SSM’s statistics 9,675 companies ceased operations during the March 18-June 9, 2020 period and 22,794 companies wound up business from June 10 to September 2020.

“This statement indicates what happened during the period of March to September, as it does not only refer to SME companies that have closed operations, but covers all registered companies with SSM,” he said.

Meanwhile, he said the Entrepreneur Development Ministry 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.

Additionally, he said entrepreneurs also need to adapt their business to the new norms, empower business through digitalisation and intensify their promotional strategies.

“SMEs also need to maintain customer information data, relationship with customers and good reputation of their product brand in order for their products to be remembered by their customers after the MCO has ended,” he added. — Bernama

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