Government To Offer RM10 Billion Stimulus Package For SMEs; Salary Subsidy Expanded

The Prihatin Rakyat economic stimulus package will receive added initiatives, according to Prime Minister Muhyiddin Yassin in a statement on 6 April 2020. The government will be supporting Small-Medium Enterprises (SME) with an additional RM10 billion to ensure the employment of two-thirds of the Malaysian workforce.

The prime minister adds that the RM5.9 billion allocation to the previous salary subsidy program announced on 27 March will be increased to RM13.8 billion. With this, companies with local employees earning RM4,000 and below will be able to enjoy these updated benefits.

According to the statement, companies with over 200 employees will receive RM600 for each retained employee. Whereas those with 76 to 200 employees will receive RM800 per person, while smaller businesses with 75 employees and below will receive RM1,200 per person.

This salary subsidy is offered for 3 months and is eligible to companies that have registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020. Additionally, these companies must also be registered with the Social Security Organization (SOCSO).

Muhyiddin also states that employers who are planning to take up this subsidy offer are required to retain their employees for at least 6 months. This includes within 3 months of receiving the salary subsidy and 3 months after that.

Furthermore, a Prihatin special grant worth RM2.1 billion will be provided to eligible SMEs, where RM3,000 will be allocated for micro businesses. This move is expected to benefit nearly 700,000 micro SMEs nationwide.

These businesses must be registered with the Inland Revenue Board (LHDN) before 1 January 2020 in order to enjoy the benefits. The government will obtain a list of eligible SMEs from the local authorities and the Companies Commission of Malaysia (SSM), the statement adds.

(Source: RTM via Facebook)

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