SHAH ALAM, July 5 — Chinese micro, small and medium-sized enterprises (MSME) have been urged not to hesitate in applying for the various assistance initiatives offered by the state government under the Selangor Resilience Enhancement Package's (SREP) Phase Two to help them cope with economic challenges arising from the geopolitical crisis in West Asia.
The Klang Chinese Chamber of Commerce and Industry's (KCCCI) president Dato' Jeffery Tan called on Chinese MSME operators to come forward and apply for the assistance available.
Speaking to Media Selangor, he said the package provides targeted assistance and is open to all eligible applicants regardless of race, provided they meet the requirements and submit the necessary documentation.
“The assistance is available to everyone who qualifies. Therefore, the public, including the Chinese community, should not adopt a wait-and-see approach.
"If a business is facing cash flow problems or requires financing, business owners should take the initiative to find out more about the relevant programmes and submit an application,” Tan said.
RM209.26 million allocation covering 15 initiatives
On June 19, Menteri Besar Dato' Seri Amirudin Shari tabled SREP Phase Two during a special sitting of the Selangor State Legislative Assembly, with an additional allocation of RM209.26 million.
Combined with Phase One, worth RM151.8 million and announced on June 15, the total allocation for the package amounts to RM355.06 million to support businesses, workers, women, and students in addressing economic challenges through 15 separate initiatives.
Entrepreneurs encouraged to apply for all available assistance
Tan added that amid the current uncertainty caused by the conflict in West Asia, many business owners have adopted a cautious, wait-and-see approach by postponing asset purchases and business expansion plans, creating a ripple effect that has weakened market spending.
“Many people are limiting their spending because of economic uncertainty, causing businesses such as restaurants to experience a significant decline. At the same time, the cost of raw materials and logistics continues to rise, placing even greater pressure on supply chains," he said.
Consequently, the situation has affected not only large companies but also MSMEs, with cash flow difficulties becoming one of the most pressing challenges.
As such, Tan believes the debt restructuring initiatives under SREP Phase Two, such as the Selangor Entrepreneur Recovery Programme, provide practical support for businesses in need.
“From a business perspective, this package provides targeted assistance rather than blanket subsidies, making it more effective in helping those who genuinely need support,” Tan said.
He noted that the economic transition resulting from the West Asian crisis could take between six months and two years to recover fully. Although oil prices have fallen, disrupted supply chains will still require time to recover.
“Once the supply of raw materials has been interrupted, it takes time to restore those supply chains. Inflationary pressures will also not ease completely within a short period," Tan said.
The entrepreneurship funding provided by the state government also plays a positive role, particularly in helping those at risk of losing their jobs or those interested in starting a business to obtain seed capital.
“As long as they meet the eligibility requirements, I encourage Chinese MSMEs to apply without hesitation. Do not let this opportunity pass because of stereotypes or unnecessary doubts,” he said.
Rental discount eases burden, but wider assistance coverage sought
Meanwhile, the Petaling Jaya Coffee Shop Association's (PJCA) president Cheah Poo Kuang said that with rental costs now accounting for as much as 30 per cent of food operators' operating expenses, the six-month, 30 per cent rental reduction announced by the state government would help ease the financial burden on affected traders.
However, fewer than 10 per cent of the PJCA's members rent premises or trading sites administered by local authorities, meaning the number of beneficiaries is relatively small, although those who qualify will still benefit.
“For us, operating costs have increased by less than 20 per cent due to higher oil prices resulting from the West Asia crisis, but business has already declined by between 20 and 30 per cent. Traders have had to absorb the higher costs themselves to avoid losing customers," he said.
Cheah observed that the impact of the West Asia conflict is only beginning to be felt, and the decline in business may be due to more cautious consumer spending.
“Although the Strait of Hormuz has reopened, we hope fuel prices can be reduced as soon as possible and that more transport operators will be eligible for subsidised diesel to help ease the supply chain crisis," he said, while urging the state government to consider reducing business licence fees, for example by 30 per cent, so that a larger number of traders could benefit.
