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    • Mar 29, 2020
    • 3 min read

Additional Economic Stimulus Package (29 March 2020)


Summary

The Malaysian Government has announced a range of measures to support the economy, business and employment in the face of the coronavirus health crisis. The measures include the following:

- For the People

- For Small and Medium Enterprises (SMEs) and Businesses

For the People

a. One-off Cash Payments

  • RM1600 to households earning RM4000 and below per month (B40 group)

  • RM1000 to households earning RM4000 to RM8000 per month (M40 group)

  • RM800 to singles aged 21 and above with earning up to RM2000 per month

  • RM500 to single aged 21 and above with earning between RM2000 to RM4000 per month

  • RM200 for tertiary students

  • RM1000 to government servants and arm forces (ATM) veterans

  • RM500 to government pensioners

  • RM500 to ehailing drivers and RM600 for taxi drivers

b. Free internet from 1 April until the end of MCO.

c. 3 months of deferment of insurance premium payments for those affected by Covid-19.

d. EPF members may reduce their contribution rate from 11% to 7% between from April to Dec 2020.

e. EPF members may withdraw RM500 per month from their Account 2 for 12 months starting from April 2020.

f. Private Retirement Scheme member can withdraw up to RM1500 between April to Dec 2020.

g. 15-50% discount on TNB bills for 6 months from April 2020.

h. Exemption of rental payment for PPR (Program Perumahan Rakyat) and public housing for 6 months.

i. Moratorium for loans including hire purchase for 6 months (loan instalment is temporarily suspended).

j. Credit card balance can be converted into term loan.

k. Moratorium for PTPTN loan repayment for 6 months.

For Small and Medium Enterprises (SMEs) and Businesses

a. Businesses may defer their tax instalments for 3 months starting from 1 April 2020.

b. Employers may defer EPF contributions (subject to approval from KWSP).

c. Wage subsidy of RM600 for each worker earning below RM4000 if the company’s income has decline by 50%.

d. Exemption from HRDF levies for 6 months.

e. 6-month automatic loan moratorium for SMEs (loans and hire purchase facilities included).

f. Interest income arising from Moratorium period will be taxed on receipt basis for the banks

g. Banks shall work with affected businesses to restructure their loans and repayment terms.

h. Banks shall offer Special Relief Facility loans to qualified SMEs at 3.5% interest rate.

i. RM700 million collateral-free micro credit to be offered by Bank Simpanan Nasional at 2% interest rate. Maximum financing of up to RM75,000 for each entrepreneur.

j. Business with less than 4 years in operation may qualify for BizMula-i (up to RM300,000) and BizWanita-i (up to RM300,000) facilities offered by Corporate Guarantee Corporation Berhad (www.cgc.com.my).

k. RM300 million SME automation and digitalisation facilities to be rolled out.

l. RM1 billon agrogood facility will be provided by Bank Negara Malaysia

m. Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide RM5 billion worth of guarantees and may guarantee up to 80% for SMEs that face difficulties in obtaining loans.

n. RM50 billion government guarantee scheme to be managed by Danajaminan National Berhad. Qualified businesses may obtain up to 80% margin of financing under this scheme. And the minimum loan size under this scheme is set at RM20 million.

For tax measurements – the authorities will announce the detailed mechanism soon. We shall update this space once we have the information.

As for bank facilities and moratorium period - please approach your respective banks for the terms and process involved. Based on the information we have collected, most of the banks are not charging compounding interest during the moratorium period (which is a good thing). Deferring your loan instalments and obtaining additional banking facilities may be important for you to better manage your business cash flow during this difficult time.

Download: Bank Contact List Please feel free to contact us if you require further assistance. ---------------------------------- Additional Information----------------------------------

Additional Information

2nd economic stimulus package (announced on 27 March 2020)

1st economic stimulus package (announced on 27 Feb 2020)


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