Malaysia: Small or micro companies have gone bankrupt due to Corona closures

The third closure measures imposed by Malaysia to confront the Corona virus, prompted more than 37,000 businesses to close

Noah Omar, Minister of Entrepreneurs and Cooperatives Development in Malaysia, said that the third closure measures imposed in the country to confront the Corona virus, prompted more than 37,000 businesses to close within 6 weeks of their implementation.

During answering a question in Parliament, Omar explained that most of the affected companies were small or micro.

The New Straits Times quoted the minister as saying that the government had set up a body to study how to help businesses that went bankrupt during the recent closures.

The restrictions imposed in mid-May, when Malaysia was recording an estimated 4,000 daily cases, were part of what the government described as a "comprehensive closure".

Large export companies in the electronics and medical glove sectors have complained that the measures are reducing production.

The GDP contracted by 2% during the second quarter compared to the first 3 months of the year.

Companies operating in the field of tourism demanded government aid to be able to continue to operate, due to the closure of the borders since March 2020

The restrictions, which were eased during the past month, did not stop the cases of infection from rising, reaching more than 20,000 cases per day, and deaths from the virus rose to hundreds.

It is noteworthy that about 85% of the Malaysian population received full doses of the vaccine.