THE Employees Provident Fund (EPF) announced the launch of the Employer Covid-19 Assistance Programme (e-CAP) to support SMEs affected by the Covid-19 global pandemic.
The new programme allows eligible SMEs flexibility to choose to apply for a deferment and restructuring of the employer’s share of EPF contributions for April, May and/or June.
The deferred contribution for the respective month of choice can then be settled over a maximum period of three months.
“The stringent but necessary measures that we adopted as a nation to contain the virus have had a severe effect on our country’s economy.
“We can see that SMEs are particularly vulnerable due to cash flow constraints and some are in real danger of not surviving over the next few months,” said EPF CEO Tunku Alizakri Alias in a statement on April 23.
He described SMEs as the cornerstone of the Malaysian economy contributing around RM522 bil to the gross domestic product (GDP) and providing the most jobs for the domestic labour market.
“SMEs registered with the EPF represent over 99% of all our registered employers, hiring about 7.6 million workers. As such, Malaysia cannot afford for SMEs to collapse as this will have far-reaching effects; from larger corporations that will face severe supply chain disruptions to individuals whose jobs will be at stake,” he added
Alizakri hopes the e-CAP will assist in some way towards helping affected SMEs ease their cash flow to ensure business continuity and provide jobs for as long as possible.
“To supplement the e-CAP, we are also offering all Malaysian employers an advisory service on all things EPF via our Employer Advisory Services where dedicated officers will discuss and work out customised, needs-based plans to help them fulfil their obligations in light of the current situation,” he added.
For SMEs who choose to apply to defer their April contributions, their restructured payments will start from July for up to three months, ending in September.
For those applying for May, the restructured payments for that month will start from August to October while for those applying for June, their restructured payments will start from September to November.
The e-CAP can be applied for via i-Akaun (Employer) from today.
SMEs interested in having their contributions deferred and restructured for two or three months should also take note that they must ensure their applications for the previous month are approved before they can submit a new application.
The e-CAP measure complements other Covid-19-related initiatives that have been announced by the EPF to support members, preserve livelihoods and assist businesses, including the reduction of the employee’s share of contributions from 11% to 7%, the i-Lestari Withdrawal facility for members to withdraw savings from Account 2 and the extension of the April employer’s contribution deadline to the end of the month. – April 23, 2020
