The Malaysian government has unveiled two stimulus economic packages in its effort to soften any financial impact caused by the COVID 19 outbreak. A total of RM250 billion stimulus packages was announced by the government of Malaysia. However, the bulk of the financial assistance will be allocated to the general public that suffers financial difficulties due to lack of active employment resulted from the country's Restriction Movement Order that began on 18 March (until 14 April).
The stimulus packages also extend assistance to small and medium enterprises (SMEs). Following are the summary detail of the assistance offered by the stimulus packages to SMEs affected by the COVID19 outbreak:
1. Suspension of income tax installment payments for all SMEs for a period of 3 months beginning April 1, 2020.
2. Exemption from contribution to the mandatory Human Resource Development Fund for 6 months.
3. An increase in the special fund (soft loan) SMEs to RM13.1billion
4. An increase in the allocation of the Special Relief Facility (SRF) to RM5 billion.
The maximum financing rate is lowered from 3.75% p.a. to 3.50% p.a. The enhanced SRF is available until 31 December 2020.
5. An increase in the allocation of the All Economic Sectors (AES) Facility to RM6.8 billion.
The maximum financing rate is also reduced from 8% p.a. to 7% p.a.
In addition to the above, SMEs also will be available to 3 other facilities under the Central Bank of Malaysia Fund, namely the Automation and Digitalisation Facility (ADF), Agrofood Facility (AF) and Micro Enterprises Facility (MEF). Detailed can be found at https://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=5022&lang=en.
GVA (Malaysia Desk) commits to provide the latest information and will update from time to time for any new facilities, laws or regulations that will assist business entities in Malaysia. Please do not hesitate to contact us if you need any further assistance or have any inquiries.