Malaysia Additional Prihatin SME Economic Stimulus Package 2020
On 6 April 2020, the Government announced an additional economic stimulus package aimed at assisting Small and Medium Enterprises (SMEs) and micro businesses to withstand the impact of COVID-19 outbreak and Movement Control Order (MCO) to their businesses.
This Additional Prihatin SME Economic Stimulus Package 2020 (ESP3), valued at RM10 billion, includes:
- An additional RM7.9 billion for the Wage Subsidy Program; and
- The creation of a RM2.1 billion Special Prihatin Grant for all eligible SMEs and micro businesses.
To ensure that all the measures and initiatives under the Prihatin Economic Stimulus Package and this Additional Prihatin SME package are implemented quickly and smoothly, a taskforce has been established at the Ministry of Finance to oversee the deployment and progress of the initiatives.
The IMSME.com.my portal handled by the Credit Guarantee Corporation is ready to receive applications for SME reliefs, with the portal also offering financing advice for SMEs.
Source link:
Prime Minister speech
– Source: https://www.pmo.gov.my/wp-content/uploads/2020/04/English-PM-Speech-PRIHATIN-Plus-6-4-2020-905pm.pdf
- Additional tax deduction equal to the rental discount will be given to landlords of private business premises who give rental discounts to SMEs.
- Enhancement of Wage Subsidy Program to subsidise affected employers between RM600 and RM1,200 per month for each employee earning less than RM4,000 for a period of three (3) months.
- Special Prihatin Grant of RM3,000 for all eligible micro SMEs.
- The Micro Credit Scheme for micro businesses is extended to TEKUN Nasional with a maximum loan limit of RM10,000 per company at no interest.
- Abolition of 2% interest rate for Micro Credit Scheme under Bank Simpanan Nasional.
- Foreign worker (except domestic workers) levies are reduced by 25% for those whose work permits are expiring between 1 April 2020 and 31 December 2020.
- Licensed moneylenders have been called upon to give a six (6) months moratorium on loan repayments by SMEs from April 2020.
- An automatic moratorium from the last day of the MCO for thirty (30) days has been granted for companies that are required to file any statutory documents to the Companies Commission of Malaysia (CCM)
- SME retailers renting premises owned by government-linked companies will be given rental exemption or discounted rental.
- Employers are encouraged to negotiate work term with their employees, including the options of pay cuts or unpaid leave during the MCO, as long as the rights and welfare of both parties are protected.
- Companies whose financial years ending 30 September 2019 to 31 December 2019 are given an extension of three (3) months from the last day of the MCO to submit their financial statements to the CCM, subject to application. No late charges will be imposed.
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COVID-19 Impact and Response