Govt announces RM10b additional assistance for SMEs

The government today announced an additional RM10 billion assistance package targeted at helping small and medium enterprises (SMEs) which have been affected by the Movement Control Order (MCO) and the Covid-19 pandemic.

Here is the list of measures that were announced by Prime Minister Tan Sri Muhyiddin Yassin in a televised speech:

1. Expanded subsidies for SMEs with employees earning RM4,000 and below

Companies that benefit from this subsidy will have to retain employees for six months — during the three-month period they receive the subsidy and three months after receiving the subsidy.

RM600 per employee for companies with more than 200 employees

RM800 per employee for companies with 76 to 200 employees

RM1,200 per employee for companies with up to 75 employees

2. Special PRIHATIN grant totalling RM2.1 billion for all eligible micro SMEs

All eligible micro SMEs are entitled to a special grant of RM3,000. These companies will need to register with the Inland Revenue Board (IRB) to enjoy this benefit.

3. Abolishing of interest rates for the Micro Credit Scheme under Bank Simpanan Nasional (BSN)

The scheme has also been extended to TEKUN Nasional with a maximum limit of RM10,000 for each company at an interest rate of 0%. RM200 million has been allocated for this purpose.

4. Rent exemption or discounts for SMEs operating at premises owned by government-linked companies

MARA, Petronas, PNB, PLUS and UDA, along with several companies linked to the state governments, have agreed to give discounts or rent exemption for SMEs.

5. Tax breaks for landlords that give rental discounts or exemptions to SMEs

These landlords will be given additional tax breaks equivalent to the amount of rent that has been reduced for the April to June 2020 period. However, the landlords will have to give at least a 30% rental discount in order to be eligible.

6. Lowering of foreign worker levy by 25% for SMEs with employee permits expiring between April 1 and Dec 31, 2020

The levy is not applicable to housemaids.

7. Moratorium of 30 days for submission of statutory documents by SMEs to Companies Commission of Malaysia (CCM)

8. Extension of deadline for the submission of financial statements to three months after the end of the MCO

This only applies to companies with financial years ending Sept 30 to Dec 31, 2019. Companies will need to apply with CCM for the extension, with no late fees to be imposed.

9. Application of loans via the IMSME.com.my portal

The portal, which is operated by Credit Guarantee Corporation (CGC) with the support of Bank Negara Malaysia, also offers the myKNP service, which provides SMEs funding advice.

Source: The Edge Markets