Since the MCO in 2020, the government has launched several initiatives to help individuals and businesses cope with their financial pressures.
Here we have narrowed down a list of facilities for SMEs that are currently available or may be opened for applications in 2021 based on the information we have. They were announced as part of the budget 2021, PERMAI, PENJANA and PEMERKASA stimulus packages.
Hopefully they can help Malaysian entrepreneurs and SMEs stay afloat as the country continues its mass vaccination program.
1. Wage subsidy program (WSP 3.0)
Objective: Supporting companies in coping with wage and salary difficulties of MCO.
What is it: As part of the WSP 3.0, employers, regardless of their industry, can receive a grant of 600 RM per employee, which earns less than 4,000 RM per month for a maximum of 500 employees.
For companies that are part of the tourism or retail sector, the WSP is 6 months for new applicants or an additional 3 months for existing WSP recipients.
One-time financial support of up to RM 600 is granted to host family businesses that are also registered with the Ministry of Tourism, Art and Culture (MOTAC) under PEMERKASA.
Sources of supply: PERKESO.
Valid from: January 1, 2021.
Beneficiaries: All companies.
2. Targeted loan repayment support (TRA)
Objective: Delay in loan repayment for SMEs whose incomes have been affected by the pandemic.
What is it: SMEs with a loan amount of up to 150,000 RM can postpone monthly installments by 3 months or reduce monthly installments by 6 months by 50%.
Sources of supply: The respective banks from which you have taken out loans.
Duration of use: November 2020 to June 30, 2021.
Beneficiaries: All SMEs.
3. COVID-19 screening test program
Objective: Improve screening among employees to curb the spread of COVID-19.
What is it: The cost of screening for registered foreign workers will be borne entirely by SOCSO to identify possible COVID-19 clusters in the workplace.
Local employees have to bear the costs themselves and can apply for a relief of RM1,000 for their individual income tax relief.
Sources of supply: PERKESO.
Valid from: February 2, 2021.
Beneficiaries: All registered foreign employees.
4. PERMAI Special Prihatin Grant (GKP)
Objective: Providing additional financial support to SMEs and micro-entrepreneurs.
What is it: An extension of the GKP 1.0 and 2.0 last year, where SMEs that have previously registered receive a one-off payment.
The amount of one-time support under the grant is as follows:
- SMEs registered in states under the MCO: RM1,000
- SMEs registered in other countries: RM500
For those who have never received this grant, they can apply from April 1, 2021. This grant is expected to benefit more than one million businesses in the nation.
Financial support of RM 1,000 for dealers and dealers in Sabah is also provided through the GKP.
Sources of supply: New applicants can apply here.
Valid from: March 2021.
Beneficiaries: SMEs that have previously registered for the GKP and new applicants.
5. Grant for the digitization of SMEs
Objective: Support of SMEs in the introduction of digitization services in daily business operations.
What is it: A grant of up to RM 5,000 is granted for SMEs that qualify for a subscription to digitization services. This is intended to improve the company's competitiveness in the market and productivity.
Each grant is limited to 1 application per SME. Companies can apply for up to 3 types of digitization services from one or more service providers registered with MDEC.
For SMEs in the manufacturing and service sectors, there is also a Smart Automation Grant (SAG) for the digitization of parts of the business.
Sources of supply: SME bank.
Grant availability: 5 years from February 17, 2020 or after reaching 100,000 applications, whichever comes first.
Beneficiaries: SMEs who want to digitize their business.
6. Strengthen online businesses
Objective: To make it easier for more SMEs to introduce e-commerce and e-payment while at the same time expanding their market reach.
What is it: Local businesses and individuals with or without company registration can receive e-commerce and e-payment onboarding training, seller subsidies, and sales support.
Sources of supply: Official MDEC website.
Beneficiaries: All SMEs and e-commerce sellers.
7. MARA Business Payment Rescheduling
Objective: Continuation of the MARA PRIHATIN peace moratorium for companies and students.
What is it: Entrepreneurs who have taken out a loan from MARA and are affected by MCO and floods are entitled to this moratorium. Borrowers are given a grace period of 3 months for their repayments from the month the application is approved.
In addition, a 30% discount on renting MARA business premises will be granted until April 2021.
Sources of supply: MARA.
Valid from: November 2020 to April 2021.
Beneficiaries: MARA entrepreneurs.
8. Support the electricity bill
Objective: To ease the burden on business cash flow for sectors that were unable to operate during the MCO.
What is it: 6 affected sectors including hotel operators, theme parks, convention centers, shopping malls, domestic airline offices and travel agents will receive a 10% discount.
Those who received the 15% discount from the stimulus package 2020 are automatically entitled to the above discount under PERMAI.
In addition, an invoice reduction of up to 9% is applied for all users.
Sources of supply: New applicants who are TNB customers can email Careline at TNB (tnbcareline@tnb.com.my) or visit the nearest Kedai Tenaga.
Valid from: January to June 2021.
Beneficiaries: All TNB users.
9. Penjana Kerjaya 2.0
Objective: Promote quality job creation and reduce unemployment among local residents.
What is it: As part of the Penjana Kerjaya initiative, employers receive an additional incentive of 60% (≤ RM 6,000). It aims to promote employment opportunities for people with disabilities, the long-term unemployed and those who have been terminated.
A special incentive of 60% of the monthly salary is granted for sectors that are heavily dependent on foreign labor.
40% (≤RM4,000) of this is forwarded directly to employers, and 20% (≤RM2,000) for their “Malaysianization” program. It essentially encourages employers to hire locals to replace foreign workers. These incentives are valid for a period of 6 months.
Employers hiring talent under Penjana Kerjaya can also claim a maximum of RM7,000 for the training program / staff training. This only applies to employees who are completing a professional certification program.
Sources of supply: PERKESO.
Duration of use: January 1 to June 30, 2021.
Beneficiaries: All companies.
10. PEMERKASA's additional employment incentives
Objective: Providing additional incentives for companies hiring gig workers.
What is it: As part of PEMERKASA, the government is expanding its scope of employment incentives to include temporary work and gig work:
- 60,000 employees receive an incentive of RM 600 per month for 6 months.
- Every employer receives RM200 for every gig worker they successfully hire for temporary work.
- A training grant of RM800 per month has been extended from 3 months to 6 months.
- Creation of the platforms UpskillMalaysia and e-LaTiH as an information center for further education and 300 free training courses.
Sources of supply: TBA.
Valid from: TBA.
Beneficiaries: Employers who hire gig workers.
11. Incentives for women entrepreneurs
Objective: Creating incentives and promoting women who want to become entrepreneurs.
What is it: The DanaNITA funding programs will help increase women's participation in entrepreneurial activities. It can also help empower existing women entrepreneurs and increase their household incomes.
There is also the Ar-Rahnu Micro-Credit Program, a capital-raising channel for women's businesses. Here women who do not have access to financial credit can exchange their gold or valuable jewelry for capital instead.
In addition, an allocation of 10 million RM in the form of a 70% matching fund for female entrepreneurs and self-employed women is provided under the SOCSO system for self-employed social security.
Sources of supply: Apply online at myusahawan or at a MARA district office.
Duration of use: Varies depending on the program.
Beneficiaries: Entrepreneurs.
12. Indian Community Entrepreneur Development Scheme (SPUMI)
Objective: Helping Indian micro-business entrepreneurs expand.
What is it: Indian entrepreneurs can receive a small financing program (10,000 to 50,000 RM) or a medium financing program (50,000 to 100,000 RM) through TEKUN. Their repayment periods are 5 or 10 years.
There is also a TEKUN Niaga funding program for Bumiputra entrepreneurs who run micro-businesses.
Sources of supply: TEKUN Nasional.
Beneficiaries: Indian and Bumiputra micro entrepreneurs.
13. Funding Scheme for Sustainable Development Goals (SDGs)
Objective: Supporting government efforts to implement 17 SDGs under the United Nations Development Agenda for 2030.
What is it: Eligible companies whose business activities make a positive contribution to one of the 17 SDGs will be funded. These include developing affordable and clean energy, gender equality in the workplace, promoting sustainable industrialization, etc.
Sources of supply: For more information, please contact the Business Banking Group 03-2611 3888.
Loan disbursement: Within 7 working days from the date of acceptance.
Beneficiaries: Companies that meet the United Nations SDGs.
14. New start support
Objective: Promote the creation of new SMEs.
What is it: SMEs that register and start their business activities from July 1, 2020 to December 31, 2021 can apply for tax breaks of up to RM 20,000 per year. This applies to 3 evaluation years.
As part of PEMERKASA, the donation limit will be increased from 10 million RM to 20 million RM. Crowdfunding of stocks is also being extended to unlisted limited companies.
SSM has also agreed to raise the debt threshold from RM 10,000 to RM 50,000. Free business registration is also available for the B40 group and full-time IPT students looking to venture into entrepreneurship.
Sources of supply: Claim it while filing your corporate taxes.
Valid from: 3 years after starting the company.
Beneficiaries: Newly established companies.
15. Working Capital Guarantee Scheme (SJMK)
Objective: Assisting SMEs in all sectors in accessing finance from participating financial institutions.
What is it: 17.5 billion RM were allocated to the SJMK, state funding for SMEs in various sectors. The funds may only be used for working capital or investment costs. It cannot be used to refinance existing facilities granted by the same or different participating financial institutions. There is a funding limit of up to 100,000 to 10 million RM for this program.
There is also a special SJMK-B especially for Bumiputras.
Sources of supply: Participating banks.
Duration of use: From now on until the full use of the WCGS fund in the amount of 17.5 billion RM or after the guarantee period has expired on December 31, 2035, whichever is earlier (according to Maybank).
Beneficiaries: All SMEs.
16. Safe @ Work Initiative
Objective: For employers who are responsible for creating a conducive work environment and place to stay for their employees.
What is it: Companies, particularly those in the manufacturing sector, receive RM 500,000 as additional tax deductions on the cost of renting their premises and dormitories.
Sources of supply: TBA.
Valid from: The application starts on April 1st, 2021.
Beneficiaries: Employers hiring foreign workers.
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There are more grants from the 2021 budget submission that we have listed, but the exact qualification requirements for SMEs are still unclear.
For more industry-specific grants and facilities, see the government Treasury website.
- Here you can read our coverage of the previous economic stimulus package.
Selected image source: Prime Minister of Malaysia, Muhyiddin Yassin
