Malaysian Chinese Association (MCA) has urged the government to introduce a temporary loan moratorium to help small and medium-sized enterprises (SMEs) in the food manufacturing sector cope with rising costs on the recent diesel price surge.
Its Economic and SMEs Affairs Committee Chairman Lawrence Low said, many food producers are facing severe financial strain, with some reporting up to RM100,000 in additional monthly operating costs, placing businesses with already thin margins at risk of closure.
He called on Bank Negara Malaysia and relevant agencies to facilitate short-term loan repayment relief, alongside access to low-interest working capital financing, to ease cash flow pressures and provide immediate breathing space for affected companies.
The diesel price increase, he added, is not only impacting business sustainability but could also have wider implications for food supply stability, employment and consumer prices if left unaddressed.
While MCA also proposed targeted diesel subsidies, tax relief and logistics support measures, it stressed that immediate financial relief through a moratorium remains critical to prevent a broader disruption across Malaysia’s food supply chain.
