Extra Incentives for SMEs – Stimulus Package #4 of RM10 Billion

[Key Highlights taken from the Star, Read Full]

Today (6 April 2020), Tan Sri Muhyiddin Yassin, Prime Minister of Malaysia, addressed the public and revealed a Stimulus Package of RM10 Billion.

Here are the highlights of the Prime Minister’s speech on Monday (April 6):

* The government will increase the wage subsidy of RM600 monthly for employers from RM5.9bil announced on March 27 to RM13.8bil, an additional RM7.9bil.

– For companies that employ more than 200 people, the number of workers who will be eligible for the subsidy is increased from 100 previously to 200.

– For companies that employ between 76-200 employees, workers are eligible for an RM800 subsidy.

– For companies that employ between 1-76 employees, workers are eligible for an RM1,200 subsidy.

The aid comes with a condition that employers must retain their staff for at least six months.

* The creation of a RM2.1bil Prihatin Special Grant for all SME companies that qualify.

* The Government will provide a Special Grant of RM3,000 to each company, and 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).

* The government will be abolishing the 2% interest rate for the RM500mil Micro Credit Scheme under Bank Simpanan Nasional.

* 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.

* 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 in regards to any problems arising from a resolution. Negotiations have to be based on employment laws of the country.

* 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 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.

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.

– They will be given additional tax deductions 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.