KUALA LUMPUR: Businesses need to change their strategies to remain competitive amid an abundance of government assistance, said Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He said the economy would recover in the second half of this year and businesses should start diversifying to sustain in the long run during the COVID-19 pandemic.
"The Strategic Programme to Empower the People and the Economy (PEMERKASA) announced last week is merely to provide a kind of backstop measures which is very transitory in nature.
"Hence, all they need to do is to galvanise all available resources including the government assistance so that these businesses can move forward," he told Bernama.
Mohd Afzanizam said businesses may need to venture into new products, new markets or partnerships within the business eco system.
"Businesses must be able to cope with limited cashflows and, at the same time, be able to forge into new areas or market," he added.
PEMERKASA worth RM20 billion is the sixth stimulus package since 2020, bringing the total value amounted to RM340 billion.
Among the assistance given is the RM500 million allocation for microcredit financing facilities via programmes under Bank Simpanan Nasional (BSN), TEKUN, Majlis Amanah Rakyat dan SME Corp.
Besides, a one-off assistance of RM1,000 for the Prihatin Special Grant 3.0 as well as the RM700 million Automation and Digitisation Facility for small and medium enterprises (SMEs) to obtain loans.
Meanwhile Bumiputera Manufacturers and Services Industry Association of Malaysia president Datuk Azman Yusoff opined that the association's strategy to strengthen the business is to have better living conditions for works on site and housing area as well as strict standard operating procedures for workers on site.
Through PEMERKASA, the small infrastructure contractors especially in the G1 to G4 categories have benefited from the assistance as the allocation has been raised from RM2.5 billion to RM 5 billion.
"We need to ensure the small jobs like G1-G4 take off immediately because the national construction industry is very much affected during Movement Control Order 2.0 as most of the jobs that were being awarded are not carried out."
"So more opportunities for new business ventures for small contractors via tenders, direct awards and other methods are available," he said.
Azman suggested the Construction Industry Development Board take the lead on works on-site and workers' issues via engagement sessions with the relevant authorities and the Minister of Works.
-- BERNAMA
Bernama
Sun Mar 21 2021
Mohd Afzanizam said businesses may need to venture into new products, new markets or partnerships within the business eco system. - Sinar Harian
What Trump 2.0 could mean for trade, migrants, climate change and electric cars
Here's a summary of the policies Donald Trump has said he will pursue when he takes office on Jan. 20.
UN says Taliban detained journalists over 250 times in Afghanistan since takeover
The Taliban-led foreign ministry denies having arrested that number of journalists and added that those arrested had committed a crime.
TikTok becoming app of choice for criminals promoting investment scams - Police
Many users continue to be tricked and scammed even though police have repeatedly issued warnings about scams proliferating on social media.
MOE’s mental health screening identifies students with emotional challenges
Deputy Minister of Education says, those identified with severe emotional issues undergo screening twice a year.
Israel, Hezbollah agree to ceasefire brokered by US and France, to take effect Wednesday
Israel will gradually withdraw its forces over 60 days as Lebanon's army takes control of territory near its border with Israel to ensure that Hezbollah does not rebuild its infrastructure there.
'No one will win a trade war,' China says after Trump tariff threat
Donald Trump says he would impose the tariffs until China stops the flow of illegal drugs, particularly fentanyl, into the United States.
What has caused Pakistan's deadly clashes between police and supporters of Imran Khan?
Topping the demands of Khan's Pakistan Tehreek-e-Insaf (PTI) party is the release of all its leaders, including Khan, who has been jailed on a series of corruption charges since August 2023.
Myanmar rebel army ready for dialogue with junta, with China's help
China puts pressure on rebels amid the rapid degeneration of the military, which Beijing has long seen as a guarantor of stability.
One woman or girl killed every 10 minutes by intimate partner or family member - UN
The report highlights that "60 per cent of all female homicides" are committed by "people closely related to them".
Malaysia ready to collaborate with South Korea on more substantial matters - PM
Malaysia seeks deeper collaboration with South Korea on digitalization, AI, and advanced learning curve discussions.
Sweden urges Chinese ship to return for undersea cable investigation
Two subsea cables, one linking Finland and Germany and the other connecting Sweden to Lithuania, were damaged in less than 24 hours.
[COLUMNIST] Building more highways won’t solve traffic congestion - reducing demand will
It is clear that adding more lanes and highways doesn't work, because we are still attempting the same approach to solve the issue.
Israel poised to approve ceasefire with Hezbollah, Israeli official says
Israel's security cabinet is expected to discuss and likely approve the text at a meeting chaired by Benjamin Netanyahu, says an official.
Hyundai to invest RM2.16 bil in Malaysia through strategic partnership with INOKOM
This investment includes efforts to upgrade INOKOM's existing assembly capacity to meet Hyundai's automotive needs.
‘C4Cinta’ sets record as highest-grossing Malaysian Tamil film
'C4Cinta', directed by young filmmaker Karthik Shamalan, has set a new benchmark in Malaysian Tamil cinema.
Man charged with mother's murder, storing body in freezer
The court denied bail and scheduled case mention on Feb 7 for the submission of forensic, autopsy, and chemist reports.
Abolition of examination in schools to reduce pressure on pupils - Fadhlina
The classroom assessment approach offers a much more interesting learning ecosystem, says Fadhlina Sidek.
Google, Meta urge Australia to delay bill on social media ban for children
Google and Meta says the government should wait for the results of an age-verification trial before going ahead.
Judge tosses Trump 2020 election case after prosecutors' request
It represents a big legal victory for Donald Trump, who won the Nov. 5 US election and is set to return to office on Jan. 20.
DHL plane crash in Lithuania leaves authorities searching for answers
Rescue services said the plane hit the ground, split into pieces and slid over 100 metres (110 yards).