PETALING JAYA: The government has announced an additional RM10 billion assistance for small and medium enterprises (SMEs) to cushion the impact of the Covid-19 pandemic on their businesses.
This included a revised wage subsidy, which will see the government spend an additional RM7.9 billion, on top of the previously announced RM5.9 billion.
Prime Minister Tan Sri Muhyiddin Yassin (pix) said under this initiative, all companies with local employees earning below RM4,000 would be eligible for the aid.
“For companies with over 200 staff, a wage subsidy of RM600 will be given for each employee, up to a maximum of 200 employees.
“For companies with 76 to 200 staff, they will receive a wage subsidy of RM800 for each employee, while for companies with 75 or less staff, they will receive RM1,200 for each employee,” he said in a special address that was televised live today.
Muhyiddin said the aid would last for three months, benefitting 4.8 million workers, on condition that the employers have to retain their staff for at least six months.
The premier also announced an RM2.1 billion special grant for micro enterprises, with RM3,000 to be given to up to 700,000 companies.
However, these micro enterprises will have to be registered with the Inland Revenue Board to be qualified.
Additionally, Muhyiddin announced a temporary rental waiver or discounts for SMEs currently renting premises owned by government-linked companies (GLCs).
“I also urge owners of private premises to similarly do the same by either giving discounts or waiver during the movement control order (MCO) and three months after that period. Those who do so will be given additional tax deductions,” he said.
Other than these, the government also announced the following:
>> suspending the interest for micro credit scheme under Bank Simpanan Nasional;
>> reducing foreign workers’ levy by 25% for those whose permits end between April 1 and Dec 31; and
>> RM200 million allocation for easy loans of up to RM10,000 each company with no interest
“I also understand the challenges faced by bosses to retain workers. As such, the government has agreed to encourage negotiations to be held between employers and employees on the terms of employment, including on salary cut and unpaid leaves” he said.
Today’s RM10 billion announcement is in addition to the RM250 billion economic stimulus package that was announced on March 27, which gave more priority on the rakyat.
Muhyiddin said the new announcement was made following several meetings with industry players and after receiving feedback.
“This sector contributes over two-third of the overall employment in the country and close to 40% of our economy. As such, it is important to ensure that SMEs continue to remain sustainable and strong in facing the economic challenges,” he said.
