Wage subsidies first line of SME’s defence

The government’s wage subsidy programme, aimed at keeping Malaysians employed and preventing retrenchments, has wide-reaching effects for SMEs as it caters for large numbers of up to 500 employees per SME and runs for well over a year.

KUALA LUMPUR: Keeping unemployment low by helping small and medium enterprises (SMEs) retain their workers through wage subsidies and loan moratoriums during the pandemic is the first line of defence in helping households, Asia Analytica said.

The research and institutional services said the sector formed the backbone of the economy and generate substantial employment.