KUALA LUMPUR, Aug 22 — Small and medium entreprises (SMEs) must have contingency plans to face any business challenges, especially natural disasters, said SME Corp Malaysia chief executive officer Rizal Nainy.

He said the Covid-19 pandemic and floods which hit the country last year should serve as a lesson for SMEs, which are described as the backbone of the country’s economy, on the importance to be prepared and take steps to protect their businesses.

“A total of 97.4 per cent of traders in Malaysia are SMEs. They make a big contribution to the economy and create job opportunities.

“As such, SMEs must have the mentality for preparedness,” he said at a ceremony to distribute SME Emergency Fund 2.0 (SMEEF 2.0) to 126 traders at Institut Kemahiran Tinggi Belia Negara Dusun Tua, Hulu Langat, near here, today.

Rizal said traders could access various assistance and facilities provided by the government to help them revive their businesses that were affected by natural disasters.

According to him, the advisory and financial assistance provided by SME Corp through SMEEF 2.0 today is an example of the type of assistance that SMEs can benefit from.

Meanwhile, Rizal said they have already received a total of 1,212 loan applications totalling RM113 million through SMEEF 2.0, which is an interest-free loan programme for SMEs affected by natural disasters.

“For Selangor alone, 700 companies have had their applications approved, involving an allocation of RM67.61 million,” he said. — Bernama