SMEs of Malaysia contribute about 40% to the economy and employs 70% of the working people. Briefly, their contribution to many companies in terms of sales is huge. When people have money (salaries from the SMEs), they can sign up for broadband, buy a car, buy a home and well buy anything they desire. We also have a Finance Minister who understands the SMEs yea. A few days ago, he said this, “Therefore, MOF will propose to the cabinet and if the cabinet approves, the prime minister will make the announcement next week.”
Today, the following was announced by Prime Minister Tan Sri Muhyiddin Yassin. An additional RM10 billion stimulus package for SMEs and this is consideered stimulus package 3 on top of the earlier RM250 billion. This will benefit 4.8 million workers in the country. He said, “We hope this will help the SME and help the workers to continue working. We hope this additional package worth RM10 billion can help lessen the financial burden of the SME, and subsequently guarantee that two-thirds of the total workers in this country will continue being employed.”
Some details here:
SME companies with Malaysian employees earning RM4k salary and below:
Company with less 200pax – RM600 per pax for 3 months
Companies with 76 – 199pax – RM800 per pax for 3 months
Companies less than 75pax – RM1200 per pax for 3 months.
Tracking is via SSM & Perkeso. Staff must be remain hired for at least 6 months.
- Micro Grant of RM3,000 (for SMEs registered with LHDN before Jan 2020).
- Other money lending and credit facility advised to follow bank’s loan moratorium
- Skin Credit Mikro BSN & TEKUN Nasional – interest reduced from 2% to 0%.
- Discount / Waived of lease for rentals in govt premises for April-June. Private companies are encouraged to offer discount and waiver. Tax benefit will be provided for those who offered discount more than 30%
- Foreign workers levy discount on 25% for contracts ending in April until December 2020. (Maids/pembantu rumah is not included)
- Moratorium 30 days after MCO for documents submission to SSM. Accounting docs extended by 3 months.
- Owners of buildings and retail lots who gave a rental reduction to the SME tenants will be given additional tax deduction equivalent to the deducted amount for the months of April to June 2020.
I think we will have more charts and graphics tomorrow. Will update as and when someone sends more to me yeah. As of now, let’s be happy that the government acknowledges the importance of SMEs to the economy and has announced measures to help SMEs survive through this period of zero sales since all premises must be closed except for the essential services.
Next suggested article: RM250 billion stimulus to combat COVID-19