Following the Prime Ministers’ announcement on 6 April 2020 relating to an additional RM10 billion assistance package targeted at helping small and medium enterprises (“SMEs”), please see below the measures announced:

1. Expanded subsidies for SMEs with employees with salary of RM4,000 and below

* Companies (Employers who have registered with SSM or local authority before 1 January 2020 and registered with PERKESO) benefiting from this subsidy will have to retain employees for 6 months – during the 3-month period they receive the subsidy and three months after receiving the subsidy:

• RM600 per employee for companies with more than 200 employees (cap for the numbers of employees : 200);
• RM800 per employee for companies with 76 to 200 employees.
• RM1,200 per employee for companies with up to 75 employees.

2. Special PRIHATIN grant totalling RM2.1 billion for all eligible micro SMEs

• All eligible micro SMEs are entitled to receive a special grant of RM3,000.

* Eligible SMEs:  SMEs registered with the Inland Revenue Board before 1 January 2020 and with less than 5 employees or less than RM300,000 in revenue

3. Interest rates for the Micro Credit Scheme under Bank Simpanan Nasional is abolished

• It has also been extended to TEKUN Nasional with a maximum limit of RM10,000 for each company at an interest of 0%.

4. Rental exemption or discounts for SMEs operating on premises owned by government-link companies

• Majlis Amanah Rakyat, Petroliam Nasional Bhd, Permodalan Nasional Bhd, PLUS and UDA Holdings Bhd, along with several companies linked to state governments, have agreed to give discounts or a rental exemption for SMEs

5. Tax breaks for landlords that give rental discounts or exemptions to SMEs

• Landlords will be given additional tax breaks equivalent to the amount of rental that has been reduced for April to June 2020.

• However, this incentive is subject to the condition that the landlords have to give at least a 30% rental discount.

6. Lowering foreign worker levy by 25% for SMEs with employee permits expiring between 1 April and 31 December 2020

• Not including housemaids.

7. A moratorium of 30 days from the last date of the MCO for the submission of statutory documents by SMEs to SSM

8. An extension of deadline for the submission of financial statements to 3 months from the last date of the MCO after the end of MCO

• This only applies to companies with financial years ended 30 September to 31 December 2019.

• Companies must apply with SSM for the extension with no late fees imposed.

9. Application of loans via the Im-SME.com.my portal

• This portal is operated by Credit Guarantee Corp with the support of Bank Negara Malaysia.

• It also offers MYKNP service, providing SMEs with funding advice.