SHAH ALAM, July 1 — The actual impact of the Selangor Resilience Enhancement Package (SREP) Phase Two has been described as a 'lifeline' for micro-enterprises, helping them sustain their businesses amid challenging economic conditions.
Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong said the package is important for the people’s economy, even though its multiplier effect is relatively small compared with Selangor’s gross domestic product (GDP), valued at RM460 billion.
The initiative is also centred on micro-entrepreneurs, small and medium-sized enterprises, the agricultural sector, and local communities in addressing fundamental grassroots challenges.
“Micro-enterprises are the most vulnerable group and often face dead ends when seeking formal financing. The Selangor stimulus package fills this funding gap and serves as much-needed emergency assistance.
“This is a form of local economic support. The majority of small traders depend entirely on their local communities to earn a living, so this funding directly stabilises the economic cycle of ordinary people,” he told Media Selangor.
Wong emphasised that the impact of such assistance should not be measured solely using macroeconomic indicators, as its true strength lies in the effects that may not be immediately visible in economic data.
He said that purchasing power declines when a locality loses jobs and working capital, dragging small businesses into a crisis that can trigger a 'domino effect'.
“If small businesses are able to survive, hawkers can continue supporting their families because of the injection of incentive funding, and the chain of negative impacts can be completely prevented.
This is what building genuine resilience means. Through schemes such as interest-free microloans and career transition programmes provided by the Selangor government, local economic activities can be maintained at a ‘business as usual’ level.
"Stable conditions without shop closures demonstrate that the package is functioning effectively,” Wong said.
Meanwhile, he also commented on the challenges faced by workers and small business owners seeking to transition to other sectors amid current market pressures.
The local labour market requires a sufficient buffer period, as a large proportion of the workforce still lacks the new skills needed to switch careers abruptly.
“Without cash-flow assistance and support from the state government, the livelihoods of these target groups would be severely affected before they have the opportunity to upskill for new market demands,” Wong said.
The state government has allocated RM355.06 million to implement SREP's two phases, to address supply disruptions resulting from the conflict in West Asia.
RM145.8 million has been allocated to seven initiatives under Phase One, while the remainder is allocated to Phase Two, which comprises 15 new initiatives announced on June 19.
