FEATURE
Property360Digest e-magazine Issue # 9 - 2021
By Gunaprasath Bupalan
Troubled times ahead for SMEs
Kuala Lumpur , 25th May 2021 – March 2020 is a month that will be remembered by every Malaysian , if not just for the next few decades but in history . Very few anticipated the severity of a flu-like disease that was making its way across borders and overpowering the immunity of masses worldwide . Covid-19 was indeed a shocker and it had a point to prove – that it is not easily defeated .
More than a year later , despite major efforts by leading scientists and medical practitioners , the pandemic is still lurking and at a high in many countries . Due to its brutality , it has not just affected the health and personal wellbeing of people , but it has left a very strong negative impact on businesses across the globe , especially Small and Medium Enterprises ( SMEs ) as well as Micro-Entrepreneurs . Malaysia was no exception .
This impact has affected many sectors across the economy . The Merger & Acquisition ( M & A ) market is no exception . It was reported that M & A activities in Malaysia fell for the third consecutive year in 2020 , hurt by the impact of the Covid-19 outbreak . wounded by the Covid pressure .
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According to the Entrepreneurship Development and Cooperatives Ministry in a Parliamentary written reply dated Nov 5 , 2020 , a total of 32,469 SMEs had folded since March 2020 when the movement control order ( MCO ) was first implemented to curb Covid-19 . The Ministry , quoting statistics by the Companies Commission of Malaysia ( SSM ), said that 9,675 SMEs shut down operations during the first phase of the MCO from March 18 to June 9 . Then a further 22,794 SMEs shut down during the recovery MCO that took place from June till September last year , with the highest figure recorded in August with a total of 17,800 SMEs .