Putrajaya aids RM10 billion for SMEs hard hit by pandemic

Putrajaya aids RM10 billion for SMEs hard hit by pandemic

PUTRAJAYA: Prime Minister Muhyiddin Yassin today announced additional assistance for SMEs amounting to RM10b under Prihatin Tambahan economic stimulus package.

The salary subsidy for SMEs under the Prihatin stimulus package has been expanded to RM13.8 billion from RM5.9 billion, with additional allocation for all SME sizes (from under 75 employees to over 200 employees).

The latest package is set to benefit eight million workers in the SME category, but comes with a condition that employers must retain their staff for at least six months.

The package offered before this was a subsidy of RM600 per worker earning RM4,000 per month and below, with a cap for the number of workers eligible based on the number of employees.

The package has been upgraded to: 

  • For SMEs with over 200 employees, the amount remains at RM600 per worker, but the number of workers eligible has been increased to 200, from 100 employees previously.
  • For SMEs with employees totalling between 76 and 200, the subsidy is increased to RM800 per employee. 
  • For SMEs with 75 employees or less, the subsidy is increased to RM1,200 per employee.
  • Employers taking up this assistance will have to retain their employees for six months, which includes the first three months when the subsidy is given out. 

Other benefits announced include:

  • Landlords urged to give rental discount of 30% to SMEs during MCO and 3 months after MCO, to get tax break for April-June period
  • RM2.1 billion in special grants of RM3,000 for micro SMEs.
  • Suspension of interest for micro credit scheme under Bank Simpanan Nasional.
  • RM200 million for “Skim Pinjaman Mudah” for loans of up to RM10,000.
  • Foreign worker levy cut by 25% for those with permit ending Dec 31, 2020, but not applicable for domestic helper