How MCO gets it it spread again, so is its impact on Malaysians. Now the government has announced additional financial aid under what is called Pemulih to lower the weight.
In this round, the RMS 150 billion aid package is intended to help citizens and businesses. Based on Prime Minister Muhyiddin’s speech, we have compiled a list of the aid that will be provided to the country’s SMEs.
1. Microcredit payment system
There will be an additional allocation of RMS 1.1 billion through a microcredit payment scheme by BSN (RM500 million), TEKUN Nasional (RM100 million) and Agrobank (RM500 million).
2. Additional funds of 500 RM
The implementation of Geran Khas Prihatin or GKP has supported business survival among small traders, especially those who do not yet have permission to operate.
According to PEMERKASA +, eligible recipients have already received their GKP 3.0 payment of RM 1,000 approximately two weeks ago and will receive another RM500 in mid-July later. Micro-SMEs will also receive additional aid of RM500 in September and RM500 in November.
3. Assist in the purchase or subscription of digital systems to SMEs
An additional RMS 100 million will be awarded under the SME Digitization Grant for SMEs and Micro-SMEs to obtain matching grants of up to Rs 5,000 for the purchase or subscription of digital systems.
4. Extension of electricity bill discounts
There will be 10% discounts between electricity bills from October to December for the affected economic sectors.
5. Wage subsidy program
Through the 4.0 Wage Grants Program initiative, the government will house up to 500 employees for each employer at a rate of RM 600 per employee for a period of 4 months.
This will be condensed to 2 months for each sector of the 2nd phase of the National Recovery Plan (PNR) and a further 2 months for the sectors classified as negative in the 3rd phase of the PNR.
Previously, the implementation of the Wage Subsidy Program was only applicable to employees with a salary of less than RM 4,000. Version 4.0 of the initiative will not have these conditions. This means employers can apply for the program even for employees earning more than RM 4,000.
6. Punctual payment and tax exemptions for the travel sector
MOTAC’s 5,335 travel agencies will receive a single payment of RM 3,000, as well as travel and service tax exemptions until the end of the year.
7. Support the arts sector
To help those in the creative arts sector, there will be 100 million euros allocated to cover incentives for production, digital content, job opportunities, training programs and protection initiatives under PERKESO, as well as the acquisition of products with productive purposes in television, song creation and radio.
8. A 6-month moratorium
Individual borrowers B40, M40 and T20, as well as micro-enterprises, will receive a 6-month moratorium. There will be no requirements such as salary cuts or job losses and no documentation will be required when applying.
This moratorium will begin on July 7 and borrowers can only apply, sign an agreement on changes to the related loan conditions and automatic approval will be given. However, SMEs will be subject to controls and approval by banks.
9. Tax exemption
An exemption from HRD Corp. will be automatically granted for a period of 2 months to employers who are currently unable to operate during the MCO.
In addition, entrepreneurs from new sectors included in the section Perbadanan Sumber Manusia Berhad The 2001 Act will provide for an extension of the tax exemption until December 31, 2021.
10. Professional career generator Program
He Professional career generator the program, which will end in June, will be expanded with several improvements. This includes lowering the wage eligibility limit from RM 1,500 to RM 1,200 for the “Malaysianization” program that gives incentives to employers to replace foreign workers with local ones.
The period of the employment contract will also be reduced from 12 to 6 months for employees aged 50 or over, the disabled and former inmates.
11. Occasional assistance to the sports sector
Companies in the sports industry, such as gyms, bowling alleys, futsal operators, etc., have been severely affected, although they can only resume operations in the third phase of the MCO. Therefore, the government has agreed to provide them with one-time assistance of RM3,000.
12. PUPUK to promote digitization and cashless transactions
To support the digitization agenda and promote cashless transactions, the government has developed PUPUK as a comprehensive initiative to which it will allocate 200 million RMM for SMEs and 100 million for SMEs. Under it, will be carried out:
- First, continue the Malaysia Online Shop and GoeCommerce Incorporation campaigns aimed at more than 300,000 microentrepreneurs, such as bazaar traders, agricultural markets, night markets and stalls, as well as artisan entrepreneurs to change their online businesses and use electronic cash register systems;
- Second, allocate RMS 100 million under the SME Digitization Grant to enable SME entrepreneurs to earn a grant of up to RMS 5,000 for the purchase of systems or subscriptions to digital platforms;
- Third, encourage the participation of micro-SMEs to enter into commercial platforms through PUPUK, led by SKMM. Strategic cooperation between digital platform providers, telecommunications companies and Pusat Internet Komuniti will be strengthened to help rural entrepreneurs participate in the digital economy; i
- Fourth, train agricultural entrepreneurs, especially in rural areas, to use the most advanced technology of the Digitalisasi dan Transformasi Sektor Pertanian program. This program, which will be implemented through the cooperation of MDEC and Pertubuhan Peladang Kawasan, will identify farmers with the potential to switch to new technology platforms.
13. An additional 2 billion RMS to help SMEs
Through Pemulih, BNM will add another $ 2 billion to the remaining $ 6.6 billion of the $ 25.1 billion fund for new SME applicants, bringing the balance of this fund to $ 8.8 billion. This fund is expected to meet the diverse needs of SMEs and microentrepreneurs to alleviate the cash flow constraints of their business.
- You can read more about PEMULIH here.
- You can learn more about other economic stimulus packages here.
Featured Image Credit: Prime Minister Muhyiddin Yassin’s Facebook page