THE government has allocated a package of an additional RM10 bil for small and medium enterprises (SMEs), Prime Minister Tan Sri Muhyiddin Yassin said, in a special address over live TV.
This was after micro-businesses and SMEs called for review of the measures, stating that they need additional aid, with their main challenges being cash flow following the Movement Control Order (MCO) and red tape.
The PM has requested that the Ministry of Finance hold engagement sessions with SMEs and micro-businesses to seek solutions to those challenges.
There is an addition of RM7.9 bil to the wage subsidy programme, for a total of RM13.8 bil.
While the RM600 wage subsidy is maintained, the limit is increased from 100 to 200 staff. Staff numbers of 76 to 200 will get RM800 per month while those with staff under 75 will get RM1,200 per month. This will be for three months and is for businesses that have registered themselves before Jan 1, 2020. The relief is also for businesses with local workers that draw a salary of RM4,000 or lower.
There will be a special grant worth RM2.1 bil for all micro-businesses and SMEs. RM3,000 will be given for each micro-business. They will need to register with the Inland Revenue Board for the amount.
Licensed financiers besides banks have been called upon to give a moratorium of six months as well. Micro-credit schemes totalling under RM500 mil will see the interest rate drop from 2% to 0%, and a fund of RM200 mil for easy loan schemes has been set up, with a maximum of RM10,000 per business, at an interest rate of 0%. Applicants can only choose one of these benefits.
Rental
Private landlords have been called on to reduce or remove rental fees for the duration of the MCO and for a period of three months after that to ease cash flow. Those renting to SMEs will see tax breaks equivalent to the discounted amount between April and June. The condition is that a discount of at least 30% is given for the duration.
Workers
Foreign worker levies are reduced by 25% for those whose work permits expire between April 1 and Dec 31, 2020, with domestic workers exempted.
Work terms are now up for negotiations between employees and employers, including the options of pay cuts or leave without pay during the MCO, as long as the rights and welfare of both parties are protected. They are encouraged to refer to the Labour Department for advice.
For companies that are required to file necessary documents to fulfil SSM requirements, an automatic moratorium from the last day of the MCO for 30 days has been granted for companies to hand in the relevant documents. The deadline to hand in financial statements for companies has also been extended for three months from the end of the MCO. This is for companies whose financial years end between Sept 30 and Dec 31. However, companies will have to apply for this leeway, and no late fees will be applied to the application.
To ensure all the measures and initiatives under Prihatin and this additional package are implemented quickly and smoothly, a taskforce has been established at the Ministry of Finance to oversee the deployment and progress of the initiatives.
The IMSME.com.my portal handled by the Credit Guarantee Corporation is ready to receive applications for SME reliefs as mentioned above, with the portal also offering financing advice for SMEs.
Muhyiddin has also promised that measures are in consideration to aid startups in this time of crisis.
