KUALA LUMPUR, Dec 21 — The Small and Medium Enterprises Association of Malaysia (Samenta) today said while it appreciated the government’s offer of RM500,000 in soft loans for small and medium enterprises (SME), Putrajaya should take one step further and implement a three-month interest-free moratorium on repayment loans for SMEs affected by the flood.

In a statement, Samenta also urged the government and police to ensure that no more looting of warehouses and shops happens, while calling for insurance agencies to process any claims expeditiously so that SMEs can embark on the post-flood recovery process.

"Samenta stands in solidarity with the thousands of SMEs that are affected by the floods.

"Many of our members have reported severe damage to vehicles, machinery and stocks, some running into millions of ringgit. Our initial estimate is that between 12,000 and 18,000 SMEs are affected by the floods,” said Datuk William Ng, chairman of Samenta Central.

Ng said that the flooding — the worst the country has seen in decades — struck at an already difficult period, when SMEs are just beginning to get back on their feet after the Covid-19 pandemic.

"Samenta’s Task Force for the Klang Valley Floods have been activated, and we are delivering supplies to affected households.

"SME owners who have faced damages are encouraged to make a police report and send us a copy at central@samenta.org.my so that we can assist in coordinating assistance from the various agencies,” he said.

Malaysia was hit by massive downpour of rain over the past few days, causing major flooding across the country.

Shah Alam, Selangor’s state capital, has been one of the worst affected by the floods nationwide following heavy rains over the weekend. Many roads remain washed out, leaving thousands of people and animals stranded while waiting for the waters to subside.

A total of 41,418 victims affected by the floods in eight states have been evacuated to 405 temporary relief centres as of noon today, said the National Disaster Management Agency.

The states are Perak, Kelantan, Terengganu, Pahang, Melaka, Negri Sembilan, Selangor and Kuala Lumpur, involving 8,384 families.