The worldwide COVID-19 outbreak has a growing impact on the economy. We know this is a difficult time for SMEs and Micro SMEs. To make things as simple as possible, we have put together some useful resources and information to help you navigate these challenging times.
(updated with the additional support announced on with the PENJANA plan on 5 June 2020)
Steps You Can Take Today
Companies registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020, and are registered with the Social Security Organisation (SOCSO) with local employees who are earning RM4,000 and below will receive the following subsidy assistance:
- Companies with a workforce of more than 200 people, will be provided with a wage subsidy of RM600 per month for every employee (up to to 200 employees).
- Companies with employees between 75 to 200 people, will be provided with a wage subsidy of RM800 per month for every employee.
- Companies with employees less than 75 people, will be provided with a wage subsidy of RM1,200 per month per employee.
- Companies are required to retain their employees at least for a period of 6 months, that is 3 months during the period receiving the subsidies and 3 months thereafter.
Click here to apply.
Note:
For workers in sectors that were not allowed to operate during the CMCO, and were asked to go on unpaid leave, employers can request a wage subsidy, on the condition that the worker receives the subsidy directly
A PRIHATIN special grant amounting to RM2.1 billion for all qualified micro SMEs will also be introduced. A special grant of as much as RM3,000 will be approved for each eligible micro SMEs.
These micro-SMEs must register with the Inland Revenue Board (LHDN) to receive this assistance. The government will obtain a list of eligible micro SMEs from the local authorities and SSM.
Update:
If you have applied for the Prihatin Special Grant, you can check your application status here . Successful applicants will receive the grant by June 15, 2020
The government has called on lending organisations who provide credit facilities to impose a moratorium on SME instalment payments for 6 months beginning April 2020. All SMEs automatically qualify for a 6-month moratorium for your loans and financing.
Here’s what you have to know about this initiative:
Eligibility.
Only applies to ringgit-denominated loans that are not in default exceeding 90 days as at 1 April 2020. Does not apply to credit card debt.
Automatic.
You do not have to apply for this, as it is automatic. If you do not want to defer your loan payment, contact your bank.
Period.
Effective 1 April – 30 September 2020.
Interest payments.
No late payment interest or charges, but your interest charges will accrue.
Credit score.
This will not be classified under CCRIS as a loan deferment.
All businesses must have capital in order to purchase assets and maintain their operations. SMEs drive regional economies, we know that cash flow needs are your top priority during this time. To address that, our banking partner, RHB Bank, have a range of short-term liquidity relief measures for ABSS customers.
Click here for more details.
Conferencing systems are no longer the high-end IT tools of large enterprises. Today, there is a range of free conferencing apps that anyone can access. Video conferencing meetings can change the businesses connect with their employees and customers remotely or working from home. You can hold online video chats with groups of people, share your desktop to give a presentation or collaborate on documents.
Check out the ABSS top pick of free video conferencing tools:
Additional Relief & Support
How to Monitor Cash Flow
You can monitor your cash flow with Financio . We've prepared the HOW-TO notes for your easy reading.
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Additional Resources
During this challenging time, some SMEs can still operate in the short term even if they are making losses but not if they run out of cash. Those that will survive the COVID-19 crisis are the ones that can effectively manage their costs, capital and most importantly, cashflow.
Take a light read on how you can improve your cash flow management skill.
PENJANA SME financing loan to assist SMEs who need cash flow support to sustain business operations. This financing facility will be made available in mid-June 2020, with a maximum loan size of RM 500,000 per SME.
PENJANA Microfinancing – allocation of up to RM 400 million under this micro-financing scheme, with RM 50 million allocated for female entrepreneurs. The aggregated approved financing will be capped at RM 50,000 per enterprise.
Bumiputera relief financing – dedicated financial assistance of RM 200 million through PUNB and RM 300 million through MARA for Bumiputera businesses.
Dana PENJANA Nasional – An investment fund will be established, which will match private capital investment with selected venture capital and early-stage tech fund managers. It is noteworthy that Government has announced that the international investors who are interested to participate include renowned venture capitalists like 500 Startups, SK Group, Hanwha Asset Management, KB Investment Co Ltd, Provident Growth and The Hive.
The Inland Revenue Board (IRB) has announced an extension of two months from the regular deadline for income tax filings, amid the Movement Restriction Order imposed by the government.
The relevant forms to be submitted by taxpayers that do not own a business will be extended by two months to June 30, 2020, while the deadline for taxpayers that own a business is now extended to Aug 31, 2020.
Penalty remissions:
50% remission of late payment penalty will be granted for any late payment of sales tax and service tax which is due and payable from 1 July 2020 to 30 September 2020.
With immediate effect, to encourage businesses to adapt to the new norm and adhere to SOPs, the Government will extend the period and expand the scope of expenses allowed as tax deduction or capital allowance for COVID-19’s prevention. This includes the cost of personal protective equipment, COVID-19 screening test and thermal scanners.
Flexible Work Arrangements (“FWAs”)
- RM800 for every individual under the age of 40.
- RM1,000 for every individual aged 40 and above or individuals with disabilities (OKU).
- Businesses that provide apprenticeships to school leavers and graduates will receive RM600 per person per month, for a period of up to six months. (Effective mid-June – December 2020)