MATTA seeks more help as 30% of travel agencies’ workforce on the line

KUALA LUMPUR: The Malaysian Association of Tour and Travel Agents (MATTA) has lauded the additional RM10 billion aid allocated for small and medium enterprises (SMEs) under the Prihatin Rakyat economic stimulus package, but says more needed to be done to support the ailing tourism industry.

In a statement yesterday, MATTA president, Datuk Tan Kok Liang, said based on a recent survey the association undertook among its members, travel agencies were looking at slashing their workforce by about 30% in the coming months.

To-date, 40% of travel agency employees have been asked to take unpaid leave and nearly 40% have had to accept pay cuts with many travel businesses considering closing their doors within the next two months.

Hence, MATTA hopes the government will consider expanding the three-month wage subsidy programme under the package to at least six months because it will take more than a year for the tourism industry to recover, post-Covid-19, said Tan.

“MATTA is very thankful for the assistance provided thus far, but much more can be done to help the travel and tour companies, and other stakeholders in the tourism industry. A targeted stimulus package for the industry is urgently needed to ensure that we have the capacity to rebound once things begin to normalise,” Tan said.

“MATTA is seeking that the government reassess the wage subsidy programme to allow it for six months or more because the tourism industry will take much longer to recover post Covid-19.

“In our earlier submissions to the government, Matta has also asked that the private sector be allowed to stop contributions to agencies such as the Employees Provident Fund, Socso and payment for income tax for a six-month period.

“We hope the government can consider these requests to help the private sector survive this difficult period. These similar requests were also submitted by other SME organisations,” he added.

Still, the revised wage subsidy programme that was announced on Monday is a positive move to help cushion the impact of Covid-19 which has had a severe impact on SMEs, especially tourism businesses, said Tan.

According to the government, about 4.8 million workers from SMEs will benefit from the programme, which was increased from RM7.9 billion to RM13.8 billion. The assistance will be distributed according to three tiers, for SMEs with employees earning RM4,000 and below: RM600 for companies that employ more than 200 people, RM800 for companies that employ between 76-200 employees, and RM1,200 for companies that employ between 1-76 employees.

“The majority of travel and tour companies are in the third tier with less than 76 employees and the new wage subsidy tiering will help to ease company cash flow problems and help retain more employees,” Tan said.

MATTA also welcomed government’s decision to urge leasing companies to offer a six-month moratorium similar to that provided by banks. This is a much-needed relief because based on feedback many leasing companies are still asking for repayments because they do not fall in the same category as banks, said Tan.

“A six-month moratorium for leasing companies will help many tourism businesses, travel agencies who own tourism vehicles in particular, tide over this difficult period when business and income are virtually nil.

“MATTA will continue to engage and, with whatever resources it has, work hand-in-hand with the government towards rebuilding the tourism industry,” he added.

Source: https://www.theedgemarkets.com/article/matta-seeks-more-help-30-travel-agencies-workforce-line