In the midst of current uncertainty over business operations, businesses should do a quick review of their operating situation and look at areas where they can reduce or minimize costs, says Adrian Hong, head of restructuring services of KPMG in Malaysia and executive director of KPMG deal advisory.
“This could involve adopting sales strategies, resource planning and cash flow or working capital management. Eligible small and medium enterprises should take the opportunity to claim the benefits from the additional Prihatin SME stimulus package 2020,” he adds.
In the context of corporate voluntary arrangement, he says it grants an immediate moratorium, which is driven by its directors or management and does not require court application. Relatively, the costs are lower and this approach is immediately accessible to SMEs.
Businesses, which now have some breathing space with the loan moratorium and wage subsidies under the government stimulus plan, should therefore take a serious relook at their organizations’ plans and decide whether a restructuring should be done to ensure that their ability to continue as a going concern is not impaired.
Click to read the full article published in The Edge Malaysia