On April 6, at 4:00 p.m. Prime Minister Muhyiddin Yassin announced additions to the initial initiatives for SMEs in the PRIHATIN stimulus package that was shared on March 27, 2020.
These additions are aimed at SMEs and micro businesses after the government received immense feedback after the March 27 announcement.
The additional initiatives will cost a total of RM 10 billion, bringing the total cost of the PRIHATIN stimulus package to RM 260 billion and the total cost of SME-related initiatives to RM 14.5 billion.
1. More wage subsidies
First, the provision for the wage subsidy
The program announced on March 27 will be increased from RM 5.9 billion to RM 5.9 billion
RM 13.8 billion, which corresponds to an increase of RM 7.9 billion.
As part of this additional initiative, everyone can
Companies that employ local workers earning RM4,000 and less receive
the following subsidy:
- For companies with more than
200 employees, a grant of RM600 per employee is retained. The
The maximum number of workers entitled to subsidies is increased
from 100 to 200 employees.
- For companies with 76 employees
Up to 200 employees receive a grant of RM800 per employee.
- For companies with 75 employees
or less, a grant of up to RM 1,200 per employee is granted.
This support is valid for 3 months and is aimed at employers who registered with SSM or the local authorities and registered with SOCSO (PERKESO) before January 1, 2020.
Around 4.8 million workers are expected to benefit from this
from this initiative.
Employers who want to get this
Support is required to keep their employees for at least 6 months
is for a period of 3 months after receiving a wage subsidy and 3 months later.
2nd Introduction of a special grant
A special PRIHATIN grant of RM 2.1 billion for all qualified small businesses will also be introduced.
The government will grant a special grant of up to RM 3,000 for each small business, which will benefit nearly 700,000 micro businesses nationwide.
These small businesses must register with the Inland Revenue Board (LHDN) to receive this support. The government will receive a list of eligible micro enterprises from local authorities and SSM.
3rd A moratorium on installment payments
The government has also called
through the credit institutions listed below that provide Akta Pemberi Pinjam Wang 1951
Credit facilities to impose a moratorium on installment payments by SMEs for 6
Months from April 2020 as provided by the bank.
4th Abolition of interest rates on loan programs
Abolition of the interest rate from 2% to 0% for
the microcredit program of RM 500 million under the Simpanan Nasional bank
The simple loan program for micro businesses will
is also extended to TEKUN Nasional with a maximum credit limit of RM 10,000 per year
Companies at an interest rate of 0%.
For this purpose a sum of 200 million RM
will be provided. Applicants can only choose one of these schemes to enable more
Company to enjoy this convenience.
5. Rent relief
The government also announced the exclusion
of rental payments or provision of rental discounts for SMEs in their own premises
from state affiliated companies.
Muhyiddin thanked the companies of the federal government
such as MARA, PETRONAS, PNB, PLUS and UDA and several other companies owned by
the state government which has agreed to grant a discount or not to rent
their premises, especially for SME tenants.
According to the principle of shared charging, Muhyiddin asked the owners of private premises to offer the same comfort by lowering the rental prices on their premises at least during the MCO period and 3 months after the end of the MCO.
Owners of a building or business premises that provide
A reduction or release of rent to tenants who are SMEs is also granted
Tax deductions in the amount of the rent reduction for April 2020 to June
This additional tax deduction is granted
subject to the terms of the rent reduction, which must be at least 30%
the original rental price for that period.
6. Allowing compromises between employers and workers
Understand the difficulties of some employers
are currently faced with the task of keeping their workers in a state of despair
This time the government has agreed to promote the consultation between
Employers and workers on employment terms, including deduction of wages
Options and the granting of unpaid leave during the MCO period.
Employers and employees can refer to Jabatan
Tenaga Kerja for job advice on all questions about the solution. All consultations
should be subject to the employment law in force in that country. Most
It is important that the rights and well-being of both parties must always be defended.
7. 30-day moratorium on legal document submission
Because companies are in trouble
Submission of legal documents to meet SSM's requirements during the MCO
For a period, the government agreed to automatically grant a moratorium on 30
Days from the last date of the MCO on behalf of the submitting company
legal documents to SSM.
8th. Extension of the registration period for the annual financial statements
The filing deadline for a company's finances
Statements are also extended by 3 months from the last date of the MCO.
This flexibility is granted to companies with fiscal years ending September 30 through December 31, 2019. However, companies need to request this flexibility from SSM and there is no late delivery fee upon request.
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To ensure that all PRIHATIN initiatives (including the additional ones) can be implemented quickly and smoothly, the Ministry of Finance has set up an inter-agency unit for the implementation and coordination of economic incentives (LAKSANA).
This unit will continuously monitor the progress of the implementation of all initiatives and report to the Minister of Finance and Muhyidding himself.
In order to support the implementation of the PRIHATIN initiative, the imSME portal operated by Credit Guarantee Corporation (CGC) with the support of Bank Negara Malaysia (BNM) can accept SME loan applications.
The portal also offers myKNP, an advisory service for financing SMEs.
- Read more about what we wrote about the stimulus package here.
Selected image source: Bernama