Rescue plan for SMEs. Workers making ladies footwear at a shoe factory. Companies in non-essential sectors have been forced to close during the MCO. — Filepic
BELOW are some frequently asked questions relating to the Prihatin Plus Stimulus Package.
Q: I am a micro-SME, is there a specific initiative for me?
A: Under the Prihatin SME+ Stimulus Package, a special Prihatin Grant worth RM2.1bil will be established for eligible micro enterprises. A grant of RM3,000 will be provided to each company. The micro SMEs must be registered with LHDN.
The government has also abolished the 2% interest rate to 0% under the Micro Credit Scheme amounting to RM500mil under Bank Simpanan Nasional (BSN).
The soft loan scheme for micro enterprises is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 at 0% for each enterprise.
Q: What is a micro-SME?
A: According to SME Corp, a micro-SME is defined as a company with sales turnover of less than RM300,000 or employs less than five people.
Q: How can I obtain financing from the RM5bil Special Relief Facility (SRF) at an interest rate of 3.5% for SMEs?
A: Information and application for the SRF can be made through participating banks or online through the/imsme.com.my/ portal. The imSME portal is Malaysia’s online SME financing/loan referral platform managed by Credit Guarantee Corp Malaysia Bhd (CGC) and is supported by Bank Negara.
Financing of up to RM300,000 is also available for SMEs in operation for less than 4 years under the BizMula-I and BizWanita-i Scheme on the imSME portal.
Q: Can I make adjustments to my workers’ employment terms to cope with the MCO?
A: The government has agreed to encourage negotiations between employers and employees on the terms of their employment, including the option to deduct salaries and allow unpaid leave during the MCO.
Employers and employees can refer to the Labour Department to obtain advice in regards to any problems arising from a resolution.
Negotiations have to be based on employment laws of the country.
Q:What is the wage subsidy programme?
A: The wage subsidy programme is a financial assistance paid to employers for every worker who earns up to RM4,000 a month. It is intended to help employers with more than 50% drop in sales since January with headcount costs to continue operating and prevent employees from losing their jobs.
Companies with more than 200 employees will receive a subsidy of RM600 per employee for up to 200 workers. Companies with 76 to 200 employees will receive a subsidy of RM800 per employee while companies with up to 75 employees will receive a subsidy of RM1,200 per employee.
Employers can submit their applications for the subsidy at prihatin.perkeso.gov.my/ and further information can be obtained at perkeso.gov.my/index.php/en/wage-subsidy programme
Q:How can a company with 76 employees and above prove that it is suffering a decline in revenue or sales of 50% or more?
A: Employers can prove a decrease of 50% or more with supporting documents showing the total sales revenue or income in January 2020 compared with the other months.
Q:When does the wage subsidy programme come into effect and end?
A: The wage subsidy programme goes into effect on April 1,2020 and is for a duration of three months. The deadline for application is Sept 15,2020.
Q:What documents are needed to apply for the wage subsidy programme? A: i. List of employee that the subsidy is being applied for
ii. Employer’s bank account statement (front page only)
iii. Employer’s bank registration information
iv. Copy of the company’s registration documents
v. Copy of declaration form PSU50
vi. Supporting documents such as financial statements or sales reports to prove loss of revenue that has been verified by management or other related documents
Q:My company has various departments/ branches. Can I select only part of the staff from the different departments/ branches for the wage subsidy programme?
A: Yes. An employer can choose any local employee with a salary of up to RM4,000 to qualify for the wage subsidy programme.
Q:Who is NOT eligible for the wage subsidy programme?
A: i. Company that registers and operates on or after Jan 1,2020;
ii. Employers and employees who are not registered with and/or have not contributed to SOCSO
iii. Employees who are financially supported by the Employment Retention Programme (ERP) in the same month
iv. Employees with monthly salary of over RM4,000
v. Employees who have already been dismissed
vi. Employees of the public sector, federal and state statutory bodies, local authorities and those self-employed
vii. Foreign workers and expatriates
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