The government has allocated an additional RM 10 billion for Small and Medium Enterprises (SMEs) under the Prihatin Economic Stimulus Package aims to soften the impact of the Movement Control Order (MCO) due to Covid-19.
Prime Minister Tan Sri Muhyiddin Yassin said the government has increased from the total of RM 5.9 billion to RM 13.8 billion for the Wage Subsidy programme. The additional allocation would be channelled to micro businesses registered with the Inland Revenue Board (IRB) as of January this year.
Here are the highlights of the Prime Minister’s special address on SME under the Prihatin Economic Stimulus Package
- The government will increase the wage subsidy of RM 600 monthly for employers. Previously, the government announced RM 5.9 billion on March 27. However, it will be increased to RM 13.8 billion – an additional RM 7.9 billion.
- The number of workers who will be eligible for the subsidy is increased from 100 to 200 for SMEs that employ more than 200 workers.
- For companies that employ between 76-200 employees, the company will receive a wage subsidy of RM 800 for each worker.
- For companies that employ between 1-76 employees, the company will receive a wage subsidy of RM 1,200 for each worker
- However, employers must retain their staff for at least 6 months.
- The government provide Prihatin Special Grant for all SMEs that qualify.
- The government will provide a Special Grant of RM 3,000 to each company. It is expected to benefit nearly 700,000 micro SMEs. However, the SMEs must register with the Inland Revenue Board (IRB) to enjoy this benefit.
- Abolishing of 2% interest rate for the RM 500 mil Micro Credit Scheme under Bank Simpanan Nasional.
- The micro loan scheme for micro businesses extended to Tekun Nasional with a maximum loan limit of RM 10,000 per company at zero interest.
- 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 period.
- Employers and employees can refer to the Labour Department to obtain advise in regards to any problems arising from a resolution.
- 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.
- The filing of the companies financial statements is also extended for three months from the last date of the MCO.
- The government has appealed to owners of private premises to reduce rental rates for to SMEs during the MCO and three months after it ends.
- Additional tax deductions will be given equal to the amount of rent reduction from April to June. This is subject to the condition that they reduce the rental by at least 30% during that period.