675 Words｜5 Mins Reading ｜07/04/2020
Prime Minister Tan Sri Muhyiddin Yassin has unveiled a special stimulus package worth RM10bil aimed at helping small and medium sized enterprises (SMEs) to reduce the impact of the movement control order (MCO).
The government will increase the allocated wage subsidy for employers from RM5.9bil announced on March 27 to RM13.8bil, an additional RM7.9bil, and RM2.1bil allocated as Prihatin Special Grant for micro SMEs.
2020 Third Stimulus Package Highlights
1. This wage subsidy program is for the employees whose monthly salary is RM4000 or below, and the salary subsidy is given to the employer for three months.
✅More than 200 employees: RM600 subsidy per employee
✅Between 76-200 employees：RM800 subsidy per employee
✅Between 1-75 employees: RM1,200 subsidy per employee
The following conditions must be met to enjoy this benefit:
✅Employers company sales decreased by 50% since January 1, 2020
✅Employees monthly earning at RM4000 or below
✅Employer must ensure that no layoffs, and does not force employee to take unpaid leave within 3 months of the implementation of the plan and the subsequent three months
✅employer must be registered with SSM or local authority before 1 January 2020, and registered with PERKESO.
2. The creation of a RM2.1bil Prihatin Special Grant for all micro SME companies that qualify.
The Government will provide a special grant of RM3,000 to each company, which is expected to benefit nearly 700,000 micro SMEs nationwide. These SMEs must register with the Inland Revenue Board (IRB) to enjoy this facility. The government will obtain a list of eligible SMEs from the Local Authorities and Companies Commission of Malaysia (SSM).
3. Financial institutions registered under the Moneylenders Act 1951 are also urged to provide moratorium for instalments of SMEs for 6 months beginning from April 2020.
4. The government will be abolishing the 2% interest rate for the RM500mil Micro Credit Scheme under Bank Simpanan Nasional. The loan amount is RM25,000 to RM75,000 for each eligible SME.
The micro loan scheme for micro businesses extended to Tekun Nasional with a maximum loan limit of RM10,000 per company at no interest. For this purpose, a sum of RM200 million will be provided.
*Applicants can only choose from one of these schemes.
5. The government has appealed to owners of private premises to reduce rental rates for SMEs during the MCO and three months after it ends.
They will be given additional tax deductions equal to the amount of rent reduction from April 2020 to June 2020. This is subject to the condition that they reduce the rental by at least 30% during that period.
Rental fees exemption or rental discounts are given to SMEs businesses renting premises owned by government companies such as MARA, PETRONAS, PNB, PLUS and UDA.
6. Allowed foreign worker levy payment to decrease by 25% for all companies with worker permit ending from 1 April to 31 December 2020. This levy deduction is not applicable to house maid.
7. The government has agreed to encourage negotiations between employers and employees on the terms of their employment, including the option to deduct salaries, and to allow unpaid leave during the MCO.
Employers and employees can refer to the Labour Department to obtain advise. Negotiations have to be based on employment laws of the country.
8. The government has granted an automatic moratorium of 30 days to allow companies to submit statutory documents to the Companies Commission of Malaysia (SSM) from the last date of the MCO.
9. The filing of the companies financial statements is also extended for three months from the last date of the MCO. The flexibility is given to companies with financial years ending Sept 30 until Dec 31. Companies will have to apply for this flexibility from SSM and no late charges will be charged.
10. Portal WWW.IMSME.COM.MY managed by Credit Guarantee Corporation (CGC) and supported by Bank Negara Malaysia (BNM) is setup and ready to receive SMESs loan application.
Business owners may apply from bank or the portal.
The government will also consider initiatives to help startups companies where the companies investments are affected.
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