PM unveils RM10 billion stimulus package for SMEs

Prime Minister Tan Sri Muhyiddin Yassin has unveiled a special stimulus package worth RM10 billion known as Prihatin Tambahan and it is aimed at small and medium sized enterprises (SMEs).

In his speech, he said that the stimulus package was announced with the hope to ease the SMEs financial burden due to Covid-19 Movement Control Order (MCO) thus securing two-thirds of the country’s total employment.

The newly announced stimulus package is an addition to the previous stimulous packages valued at RM250 billion which were unveiled on 27 March.

These are among the highlights of the Prime Minister’s announcement in regards to SMEs:

  • The government will increase the wage subsidy of RM600 monthly for employers from RM5.9 billion announced on 27 March 27 to RM13.8 billion, an additional RM7.9 billion. This is eligible:
  • For companies that employ more than 200 people, the number of workers who will be eligible for the subsidy is increased from 100 previously to 200.
  • For companies that employ between 76-200 employees, the company will receive a wage subsidy of RM800 for each worker.
  • For companies that employ between 1-76 employees, the company will receive a wage subsidy of RM1,200 for each worker.

This package comes with a condition that employers must retain their staff for at least six months.

  • The creation of a RM2.1 billion Prihatin Special Grant for all SMEs that qualify. Under this grant, the government will provide a Special Grant of RM3,000 to each company, and is expected to benefit nearly 700,000 micro SMEs nationwide. These SMEs must register with the Inland Revenue Board (IRB) to enjoy this facility. The government will obtain a list of eligible SMEs from the Local Authorities and Companies Commission of Malaysia (SSM).

Apart from that, the government will also take several initiatives to facilitate SMEs to fully benefit all the announced aids. That includes:

  • Abolishing the 2 percent interest rate for the RM500 million Micro Credit Scheme under Bank Simpanan Nasional.
  • The micro loan scheme for micro businesses extended to Tekun Nasional with a maximum loan limit of RM10,000 per company at no interest. For this purpose, a sum of RM200 million will be provided. Applicants can only choose from one of these schemes.
  • Encouraging the owners of private premises to reduce rental rates for the SMEs during the MCO and three months after it ends. By doing so, the premise owner will be given additional tax deductions equal to the amount of rent reduction from April to June. This is subject to the condition that they reduce the rental by at least 30 percent during that period.