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KUALA LUMPUR: Digital merchant platform Fave Malaysia Sdn Bhd has been tasked as the official e-commerce partner of the government's short-term Economic Recovery Plan (PENJANA) 2020.
Further, through Fave Malaysia's partnership with the Malaysia Digital Economy Corporation (MDEC), the company will co-fund the newly launched micro and small and medium enterprises (SME) E-commerce Campaign (MSME) aimed to encourage and enable e-commerce adoption, help widen their reach and drive growth.
"With the recent recovery movement control order being implemented, the MSME E-commerce Campaign couldn't have come at a better time in helping save jobs and stabilise those businesses most at risk,"
"With the support of the Government, the PENJANA plan is an opportunity for us to drive economic support and growth for the merchants who have been most affected by the crisis," Fave Malaysia general manager, growth and operations Jason Wong said in a statement.
For this campaign, the government has allocated RM70 million for the local businesses operating on the participating e-commerce partners under PENJANA to spur the recovery of local businesses.
As a home-grown brand, Fave Malaysia is co-funding the government's budget and providing additional marketing funding of RM10,000 per merchant in the form of promotion codes and e-Cashback incentives to merchants' customers.
This in turn will support merchants' marketing expenses, help them drive sales and attract more customers.
Jason said the pandemic has badly affected the retail, F&B and services sectors, and in turn, affecting other industries.
"We are committed to better ensure business growth is supported. Malaysian SMEs and micro-enterprises are key to economic recovery as they contribute to employment and growth.
"Supporting SMEs with the funding injection by the Ministry of Finance will preserve our economy's growth and help businesses become more resilient, dynamic and innovative," he said.
Increased sales for all Fave Malaysia merchants are projected to grow 10 times, with an estimated economic growth of RM200 million in sales within the next three months with immediate uptick expected in the retail, food and beverage (F&B) and service sectors.
In addition, merchants will receive immediate exposure to the 5 million customers on Fave Malaysia's platform through the co-sponsored budget.
MDEC chief executive officer Surina Shukri said by transitioning to the online marketplace and embracing e-commerce, MSMEs are better positioned to strengthen their agility and build resilience against future aftershocks.
"While the intended key beneficiaries of this campaign are the local businesses and individuals with and without businesses registrations, the spillover effect will also benefit other local e-commerce players in the ecosystem such as digital marketing, delivery and e-payment services.
"Through the MSME Campaign under PENJANA, the MSMEs' transition to e-commerce will support a growing and sustainable MSME ecosystem, in line with our national digital transformation agenda," she said.
With the SME sector contributing to more than two-thirds of total employment in Malaysia and almost 40 per cent to the economy (by GDP), the MSME E-commerce Campaign is expected to increase the confidence of all merchant players in Malaysia as they are empowered to take on new digital opportunities and grow along with the nation in the new digital economy.
Source: https://www.nst.com.my/business/2020/07/608436/fave-launches-e-cashback-help-msmes-recover-under-penjana-programme