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Guide for SMEs – COVID – 19

In February 2020, the Malaysian government issued an emergency stimulus package worth RM3.3 billion to counter the economic impact of the coronavirus (COVID-19) outbreak for SMEs. The government also allocated additional RM10bil to help support SMEs as of today.

Here are some of the key takeaways;

Restructuring and rescheduling of loans

  1. Apply for Bank Loan Moratorium 2020, is a temporary suspension or delay of loan repayment. For more information of each bank loan please do not hesitate to contact us.
  2. Apply additional working capital under Special Relief Facility (SRF) with an allocation of RM2 billion by Bank Negara Malaysia (BNM)
    Read more here.

Assisting the cashflow of small and medium-sized enterprises

  • Bank Negara Malaysia (BNM), the country’s central bank, will provide 2 billion-ringgit (US$453 million) worth in loans for small and medium-sized enterprises (SMEs). The funds will be distributed through commercial banks at an interest rate capped at 3.75 percent per annum.
  • Each SME will be eligible to receive up to 1 million ringgit (US$226,000) with a tenure of 5.5 years – this includes a 6-months payment moratorium. The government will provide banks with an 80 percent guarantee on the loans.
  • Moreover, the government has prepared a 200 million ringgit 500 million ringgit (US$43 million) micro-credit scheme for small businesses in the tourism industry.
    Read more here.

The additional package shows the government spares no effort to strike a balance between employer and employee.

“Initiatives, such as enhancing salary subsidising programme that benefit micro and small enterprises, special grant of RM3,000 to microenterprises, reduction of foreign worker levy, among others, are helpful in strengthening SME’s cash flow position to cope with the difficulties ahead, ”
Read more here.

Salaries and wages

  • The government also states that Employers are not allowed to cut the pay of employees or force them to take annual leave, or even dismiss them without adhering to the employment contract during the movement control order (MCO).The ministry said that all salaries and allowances must be paid except for transport allowances that will not be used during the period.
  • For companies such as airlines affected by the drop in businesses, any cuts in salaries and benefits should first be discussed and agreed upon by employees, said the Human Resources Ministry in a statement on frequently asked questions issued by the National Security Council.
    Read more here.
  • As for employees who are told to take unpaid leave starting from the 1st of March, they are eligible to apply for aids from the Employment Retention Programme (ERP) of up to RM600 a month due to the COVID-19 pandemic.
  • For more info, please visit PERKESO.

As part of our effort to deal with the global pandemic and help ease the burden on SMEs, we are offering a free job posting for all our clients at www.jobsocieties.com. This can help secure more man power to ease the operational needs of your company while providing extra incomes for interns and students to combat with the economy downfall.

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