Insurance, Takaful Coverage Can Help MSMEs Retain Workers -- MECD

KUALA LUMPUR, May 7 (Bernama) --  Insurance and takaful coverage for employees are among the measures that can help micro, small and medium enterprises (MSMEs) retain their workforce, according to the Entrepreneur and Cooperatives Development Ministry (MECD).

Its minister, Steven Sim Chee Keong said the rising costs are placing pressure not only on workers, but also on businesses, particularly MSMEs.

“With insurance or takaful protection for employees, especially in terms of medical coverage during illness, employers can at least reduce costs in this area,” he said at the launch of the CIMB Payroll Account under the CIMB@Work programme here today.

Meanwhile, Sim said he has outlined a ‘3A’ approach for the banking and financial sector to support MSMEs, namely accessibility, affordability and advancability.

“First, there must be accessibility for MSMEs, particularly in terms of faster loan approvals. Second is affordability, where financing facilities must remain within reach, especially for MSMEs.

“And third is advancability, which means not only providing funding or capital injections, but also helping entrepreneurs in terms of capacity building and business expansion,” he said.

-- BERNAMA