Effectiveness of the Covid-19 Economic Stimulus Packages: Viewpoints from Malaysian Young Entrepreneurs

Abstract

The objective of this study is to investigate the effectiveness of economic stimulus packages of COVID-19 for small-medium enterprises (SMEs) in Malaysia, specifically on the young entrepreneurs’ age 40 and below to offer some views on financial measures that should be prioritised and strengthened to lessen the burden of those young entrepreneurs who are severely affected during the pandemic. Data collected mainly from the survey of 25 industry players on their views on the Malaysian government’s stimulus packages, announcements and reports. Analysis of the findings serves as the basis for deriving the viewpoints and reflections of this paper. The result shows that most interviewees welcome a six-month wage subsidy program, bank loan instalment moratorium and company tax deferment. Respondents commented that tax incentives on certain expenses are not as beneficial as that spending is luxurious. Feedback shows a delay in receiving the subsidies by some respondents and concerns on their ability to pay tax and loan instalments in the future when the government lifted the incentives as they expect a longer time is needed to boost demand. From the positive impacts, respondents viewed optimistically the Malaysian government’s stimulus packages and complimented that as one of the best government strategies.