The 250 billion Second Economic Stimulus Package – Package Prihatin is announced on 27th March 2020. Almost RM10 billion allocated as Cash Pay-out under Bantuan Prihatin National which will be given to employees in private sectors, FELDA developers, farmers, fishermen, small businesses, M40 group and below.
2020 Second Stimulus Package Highlights
- Deferment of income tax payment for SMEs for three months, starting 1 April 2020
- Exemption of HRDF levies for all sectors for 6 months, starting 1 April 2020.
- EPF will launch an Employer Consultation Services Program on 15 April 2020, where employers may opt for deferment of payment, restructuring, or rescheduling of employers’ contribution.
- Wage Subsidy Program (RM5.9 billion allocated)
RM600 monthly wage subsidy for three months for employers, to be given to employees with monthly salary of below RM4,000.
- Employers to prove a 50% drop in business since 1 January 2020,
- Employers must ensure that they do not dismiss employees or instruct employees to take unpaid leave for three months after the program is implemented.
- employers are not allowed to deduct an employee's existing pay.
- Additional allocation of RM4.5 billion for SME and micro entrepreneurs which will comprise of five initiatives.
i. Additional RM3 billion allocated in Special Relief Facility for SMEs, total 5 billion now, interest reduced from 3.75% to 3.5%
ii. Additional RM1 billion allocated to the RM6.8 billion funds under financing for all economic sector to increase SMEs access to financing.
iii. Additional RM500 million allocated to Micro Credit Scheme under Bank Simpanan Nasional (BSN), which is now total of RM700 million funds for easy financing,
- at 2% interest rate with no collateral requirement, and
- relaxed term to minimum 6 months in operation.
- Financing amount from RM25,000 to max RM75,000 for each micro entrepreneur
- for sectors including Childcare Centre (taska), bus and taxi operators, creative industries and online merchants.
iv. SMEs with business records of less than 4 years can take advantage of BizMula-i and BizWanita-i Schemes from Credit Guarantee Malaysia Berhad (CGC) for financing up to RM300,000.
v. Business Financing Guarantee Company (SJPP) will provide RM5 billion worth of securities and increase the guarantee rate from 70% to 80% for SMEs with problems in obtaining loans.
- Electricity Bill Discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from the April bill.
Discount % - electricity usage
50% - 200kW and below
25% - 201 to 300kW
15% - 301 to 600kW
- Cash Pay-out to Malaysians
i. RM1,600 in aid to households earning below RM4,000, with RM1,000 paid in April 2020 and RM600 in May 2020.
ii. RM1,000 financial assistance for households earning between RM4,001 and RM8,000 per month, with RM500 paid in April 2020 and RM500 paid in May 2020.
iii. RM800 for single Malaysians aged 21 and above earning RM2,000 and below per month, with RM500 paid in April 2020 and RM300 paid in May 2020.
iv. RM500 financial assistance for single Malaysians aged 21 and above earning between RM2,001 and RM4,000 per month, with RM250 paid in April 2020 and RM250 paid in May 2020.
- Loan Moratorium will be extended and implemented for loans from TEKUN, MARA, cooperatives and government agencies that grant loans to SMEs, starting 1 April 2020.
- Tax on bank's income from interest or profit on the loan or financing involved with the moratorium in repayment of loan or financing is only taxable when the income is received after the moratorium period.
- Special fund of RM64.4 million allocated to provide RM100 million to RM200 million to each farmers and fishermen associations to develop agrofood projects which are able to produce food in three to six months, to ensure food supplies are sufficient.
- RM100 million allocated to set up food storage and distribution centres.
- Free Internet from April onward until the end of MCO period.
- Rental exemption
- 6 months rental exemption for Project Perumahan Rakyat (PPR).
For rent-to-own units, a six-month repayment moratorium is provided for April 2020 to September 2020.
- 6 months rental exemption for Project Perumahan Awam (PPA) under DBKL.
- 6 months rental exemption for all Federal Government owned premises, including all premises owned by agencies and statutory bodies of the Federal Government. Examples of such premises are school canteens, nurseries, cafeteria and convenience stores.
- Government will subsidise the salaries payable for the MCO period by service contractors such as cleaning and food suppliers in schools, public higher institutions, public training institutions and other Government agencies including statutory bodies. The related service contract will also be extended for one month as a trade-off with the MCO period.
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