In business
Economic stimulus package announced on March 27, 2020, Prime Minister Muhyiddin Yassin
announced that steps are being taken to reduce COVID-19 exposure
Pandemic against SMEs.
ON total RM4.5
Billions, which includes 5 main initiatives is used to do this
Efforts.
Easier access to finance
For SMEs
First of all the
Government will RM 3 billion special assistance facility for SMEs added,
bring that totaling RM 5 billion.
additionally interest
The interest rate for the entire fund is reduced from 3.75% to 3.5%.
Second, the size
The fund will also be increased by RM 1 billion to RM 6.8 billion
under Kemudahan Semua Sector Ekonomi to improve funding
Access to all SMEs.
Third, the government
will provide additional funds of RM 500 million under the microcredit program
This provides a total of RM 700 million for simple financing.
The scheme is executed
from the bank Simpanan Nasional, which only offers 2% interest free.
Loan eligibility
Requirements are also expanded with a minimum of 6 months of operation compared to 1 year
Business.
The funding amount
is too rose from a maximum of RM 50,000 to RM 75,000 per entrepreneur.
The initiative is open to all micro-entrepreneurs in all business areas, including taxi companies, bus companies, the creative industry and online retailers.
Fourth for SME
with business documents of less than 4 years, you can also exploit
the BizMula-i and BizWanita-i Syarikat Jaminan Credit Malaysia Berhad (CGC)
Schemes for funding up to 300,000 RM.
The fifth initiative
includes Syarikat Jaminan Pembiayaan Perniagaan (SJPP) deployment RM5 billion
Value of guarantees as well as Increase of the guarantee rate from 70% to
80% for SMEs struggling to get credit.
Alleviate cash
Flow problems
Undoubtedly many SMEs
face cash flow problems, the government has announced some initiatives
approach them accordingly.
To begin with, EPF
imagine that Job counseling service program at the 15 th of April
2020.
This service includes
Options for Delayed payments, restructuring and rescheduling of the employer
Contributions.
The government is expecting
This measure is intended to give employers cash flow savings at an estimate of RM 10
Billion.
The initiative will
More than 480,000 SMEs and affected companies benefit and save over 8
Million jobs.
Second, there is also one Exclusion of tax payments for the Human Resources Development Fund (HRDF) for all sectors For a Period of 6 months from April 2020.
This measure is
The company's cash flow is expected to be supported with a total saving of RM 440 million.
Concerned about the
The government has also admitted problems facing around 750,000 SMEs suspension
of income tax installment payments for all SMEs for a Period of 3 months
from April 1, 2020.
This is in addition to the previously announced measures that have allowed the government to postpone tax payments to companies affected by the tourism sector by six months from April 1, 2020.
To the those in others
affected sectors, They are may change the income tax amount
in the third, sixth and ninth monthly installments during the transaction
Period.
As previously announced by the government, it also welcomes the willingness of banking institutions to offer a moratorium on a 6-month delay or loan repayment, converting credit card balances into temporary loans, and restructuring corporate loans to support SMEs and individuals.
Muhyiddin explained that this step is important to enable companies to continue their employment and continue their business. This initiative comprises a total of at least RM 100 billion.
Selected image source: Muhyiddin Yassin FB
