KUALA LUMPUR, 6 April 2020 – The government has announced an additional RM10 billion assistance package under the Prihatin Rakyat Economic Stimulus Package targeted to helping Small and Medium Enterprises (SMEs) affected by the Movement Control Order (MCO) and COVID-19 pandemic.
Prime Minister Tan Sri Muhyiddin Yassin said from the total, RM7.9 billion has been allocated for the Wage Subsidy programme, an increase from RM5.9 billion to RM13.8 billion.
He said the additional allocation included a total of RM2.1 billion in grants that would be channelled to micro businesses registered with the Inland Revenue Board (IRB) as of January this year.
The Prime Minister said he had received feedback from SMEs and micro businesses who were affected and were in need of assistance from the government.
Among the issues, he said, included cash flow problems following the implementation of the MCO as well as red tape in accessing assistance from the government.
“I have asked the finance minister to hold discussions with the businesses to seek solutions following this.
“The wage subsidy would benefit 4.8 million workers with a monthly income of RM4,000 and below.”
Prime Minister Tan Sri Muhyiddin Yassin
Below are some of the measures announced by the Prime Minister in a televised speech:
Expanded subsidies for SMEs with employees earning RM4,000 and below
Companies benefiting 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.
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. They must register with the Inland Revenue Board (IRB) for this benefit.
Application of loans via the ImSME.com.my portal
- The portal, operated by Credit Guarantee Corp with the support of Bank Negara Malaysia, also offers the MyKNP service, providing SMEs with funding advice.
Muhyiddin had on March 27 announced the RM250 billion Prihatin package that would benefit those affected by the COVID-19 crisis in Malaysia.
From the total, RM128 billion has been set aside to protect the welfare and well-being of the people and RM100 billion has been allocated to help businesses including SMEs.
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz had said that the special stimulus package, aimed to ease the burden of Malaysian SMEs amid the global pandemic, was drafted after several meetings between the ministry and SME representatives.
It has also engaged the International Trade and Industry Ministry and SME Corporation Malaysia in finalising the proposal.