KUALA LUMPUR, 27 May 2020 – The Ministry of Entrepreneur Development and Cooperatives (MEDAC) will allocate RM452.8 million to assist COVID-19 hit entrepreneurs under a business recovery plan to support the stability of the entrepreneurial ecosystem.
The allocation is expected to benefit more than 21,847 micro entrepreneurs, small and medium enterprises, social entrepreneurs, startups and cooperatives.
Its minister, Datuk Seri Wan Junaidi Tuanku Jaafar, in a statement today, said MEDAC tabled the Entrepreneur and Cooperative Recovery Plan at a Cabinet meeting on May 6, 2020.
“The recovery plan outlines six key strategies to support the stability of the entrepreneurial ecosystem, revitalise entrepreneurs’ business operations in the near term and ensure that entrepreneurs remain competitive and sustainable.
“It contains 30 programmes that will be implemented in two phases, namely the immediate measure from May to December 2020 and the medium-term from January 2021 to May 2021,” he said.
Wan Junaidi said for the first phase, RM230.1 million is required, of which RM175.79 million is for the implementation of six new programmes and 10 existing programmes by utilising the existing allocations under MEDAC and its agencies, while an additional of RM54.31 million is needed to implement 14 new programmes.
For the second phase, he said RM222.69 million would be allocated to carry out 19 new programmes and 11 existing programmes.
Wan Junaidi said MEDAC and its agencies had applied for the allocations through the application of funds under the 12th Malaysia Plan (12MP) period.
He said MEDAC is also working with the Ministry of Finance in formulating the Post COVID-19 Short and Medium-Term Economic Recovery and Restart Plan.
“MEDAC is a member of the SME Recovery Support Working Group which focuses on short and medium-term strategies and initiatives to revive affected entrepreneurs and accelerate the country’s economic growth,” he said.
He said MEDAC, on May 8, also proposed an entrepreneurship restart plan with an allocation of RM261.21 million.
“The current and future initiatives are in line with the government’s policy of ensuring that the people, especially entrepreneurs, get the support of MEDAC so that their business operations can continue as normal under the Conditional Movement Control Order (CMCO),” he added.