SMEs to get more access to loans, tax reprieve
STIMULUS | Putrajaya will allocate more money for loans to SMEs and provide tax breaks, as measures to mitigate the economic downturn due to the Covid-19 outbreak.
This was part of the Pakej Rangsangan Ekonomi Prihatin Rakyat announced by Prime Minister Muhyiddin Yassin today.
STIMULUS | Putrajaya will allocate more money for loans to SMEs and provide tax breaks, as measures to mitigate the economic downturn due to the Covid-19 outbreak.
This was part of the Pakej Rangsangan Ekonomi Prihatin Rakyat announced by Prime Minister Muhyiddin Yassin today.
Highlights of the package that will have an impact on SMEs are as follows:
- All SMEs will be given a three-month tax instalment payments deferment beginning April 1. During the first stimulus announced in February, this was limited to the tourism sector.
- Wage subsidies of RM600 a month for three months for those earning less than RM4,000 a month in companies which have experienced a 50 percent drop in revenue since Jan 1 and have not retrenched anyone or cut salaries.
- Lower interest from the Bank Negara's Special Relief Facility (SRF). The interest has been reduced from 3.75 percent to 3.5 percent. The fund will be topped up by RM3 billion for a total of RM5 billion. The SRF was announced in February.
- Bank Simpanan Nasional's micro-credit scheme will be topped up by RM500 million for a total of RM700 million. The interest rate has been reduced from 4 percent to 2 percent. Firms with a business record of six months and above are eligible. The previous criteria was one year. The maximum borrowing amount has been increased to RM75,000, up from RM50,000 previously. This scheme was announced in February.
- The Finance Ministry's Syarikat Jaminan Pembiayaan Perniagaan will prepare RM5 billion for loans and a government guarantee up to 80 percent, up from 70 percent previously, for SMEs which have problems finding financing. This scheme was launched in 2019.
- The Employees Provident Fund (EPF) will introduce a new scheme on April 15 to defer, restructure or reschedule employer contributions to improve cash flow.
- Employers will be exempted from contributing to the Human Resources Development Fund for six months beginning April.
- Electricity discounts.
- Free internet until the movement control period is over.
Are you sure you want to delete this comment?
This action cannot be undone.