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BAKER TILLY MALAYSIA
7 April 2020
07/04/2020
Following the PRIHATIN Rakyat Economic Stimulus
Package (“PRIHATIN Rakyat ESP”) previously announced
on 27 March 2020, the Government has received feedback
from Small & Medium Enterprises (“SMEs”) and micro
businesses requesting for assistance during the COVID-19
period.
In response, the Prime Minister on 6 April 2020 announced
an additional package of RM10 billion to support the SME.
We cover these measures in this bulletin and leave it to
businesses to consider if these measures are sufficient in
helping them make it through the next few months. What
has not been made clear in the announcements is
whether the packages are also available to entities
other than ‘companies’, like partnerships, sole
proprietors and unincorporated businesses.
Additional PRIHATIN SME Economic Stimulus Package (“PRIHATIN Plus”)
Baker Tilly Malaysia│ Page 1 │ 7 Apr 2020
Wage Subsidy Program (“WSP”)
The Government has increased the allocation for WSP from RM5.9 billion to RM13.8 billion. Under this additional initiative, all companies with
local employees earning a monthly salary of RM4,000 and below will receive wage subsidies for a period of 3 months effective from 1 April 2020
as follows:
WSP under PRIHATIN Rakyat Enhanced WSP under PRIHATIN Plus Application
Wage subsidy
for employer
• RM600 per month per
employee.
• The scheme is limited to 100
employees for each employer.
• Companies with more than 200 employees -
RM600 per month per employee (the scheme is
limited to a maximum of 200 employees for each
employer).
• Companies which have between 76 to 200
employees - RM800 per month per employee.
• Companies which have up to 75 employees -
RM1,200 per month per employee.
It is assumed that the 50% reduction in revenue
condition imposed under the WSP continues to
apply to all the above – this was not made clear
in the 6 April 2020 announcement.
• Employers are allowed to
make the application (via
prihatin.perkeso.gov.my)
starting from 1 April 2020.
• The application process
may take 7 to 14 days for
the wage subsidy to be
credited directly into the
employer’s bank account.
For registration and
submission of the forms,
please follow the link
HERE.
Below are the salient points from the PRIHATIN Plus announcement :-
Baker Tilly Malaysia│ Page 2 │ 7 Apr 2020
Waiver/Discount of Rentals to SMEs and Further Tax Deduction to Owners of Private Premises
• Owners of private premises who are willing to reduce rental rates on their premises rented to SMEs during the Movement Control Order (MCO)
and three months after it ends will be given a further tax deduction equivalent to the amount of rental reduction (i.e. from April to June 2020).
This is subject to the condition that there is a reduction of the rental by at least 30% from the original rental.
• Rentals will be also be waived or discounted for grocery businesses operated by SMEs at premises owned by the Government-Linked
Companies (GLCs).
Reduction of Foreign Workers Levy
• To ease the cashflow of all companies, there will be a 25% reduction of the levy for foreign workers whose work permits expires between 1
April 2020 to 31 December 2020. However, this measure is not applicable to domestic helpers.
Moratorium to SMEs for Loan Repayments under the Credit Facilities by Registered Money Lenders
• The Government is urging registered money-lenders to provide moratoriums to SMEs for loan repayments for 6 months commencing April
2020, similar to the moratorium offered by the banks.
Below are the salient points from the PRIHATIN Plus announcement :-
Baker Tilly Malaysia│ Page 3 │ 7 Apr 2020
Special PRIHATIN Grant for Micro SMEs and Abolishment of Interest Rate under Micro Credit Scheme
• The Government will provide a special grant of RM3,000 to all micro SMEs. In order to benefit from the special grant, the micro SMEs must
register with the Inland Revenue Board (IRB). The Government will obtain the list of micro SMEs from the SSM and local authorities. This
special grant is anticipated to benefit 700,000 micro SMEs.
• For the SMEs, the current 2% interest rate will be reduced to “0% interest rate” under the Bank Simpanan Nasional RM500 million Micro Credit
Scheme.
The loan scheme for micro businesses is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 per company at “0%
interest rate”.
The applicant can only opt for one of the above schemes.
Moratorium/Extension of Time for Lodgement of Statutory Documents and Financial Statements to Companies
Commission of Malaysia (CCM)
• The Government has agreed to grant an automatic 30-day moratorium from the date of Movement Control Order (“MCO”) ends for companies
to lodge their statutory documents with CCM.
• The filing of the accounts for companies with financial years ending from 30 September 2019 until 31 December 2019 is extended for three
months from the end of the MCO, with no late charges being imposed. However, the companies will have to apply to the CCM for this extension
of time.
Below are the salient points from the PRIHATIN Plus announcement :-
Baker Tilly Malaysia│ Page 4 │ 7 Apr 2020
Anand Chelliah
Managing Partner, Tax Services
Asia Pacific Tax Leader
E: anand.chelliah@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1093
Murugan Anbanantham
Director, Tax Services
Technical
E: murugan.anbanantham@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1004
Marcus Tan
Executive Director, Tax Services
Corporate Tax & Tax Incentive
E: marcus.tan@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1521
Tay Siew Chu
Associate Director, Tax Services
Corporate Tax & Personal Tax
E: siewchu.tay@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1139
Yohan Francis
Executive Director, Tax Services
International Tax & Transfer Pricing
E: yohan.xavier@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1096
Sandra Saw
Associate Director, Tax Services
Corporate Tax & Sales Tax and Service Tax
E: sandra.saw@bakertilly.my
T: +60 3 2297 1000
DL: +60 3 2297 1146
Contact Our People
Baker Tilly Malaysia│ Page 5 │ 7 Apr 2020
Head Office
Kuala Lumpur Baker Tilly Tower,Level 10, Tower 1, Avenue 5,Kampung Kerinchi, 59200 Kuala Lumpur.T: +6 (0) 3 2297 1000F: +6 (0) 3 2282 9980info@bakertilly.mywww.bakertilly.my
Branch Office
Johor – Batu PahatNo. 33, Jalan Penjaja 3,Kim's Park Business Centre,83000 Batu Pahat, Johor.T: +60 7431 5403F: +60 7431 4840
Johor – Johor Bahru157-B, Jalan Sri Pelangi, Taman Pelangi,80400 Johor Bahru, Johor.T: +60 7332 6925 / 6926F: +60 7332 6988
Labuan1st Floor, U0509,Lazenda Commercial Centre,Phase 11, Jalan Tun Mustapha,87000 Federal Territory of Labuan.T: +60 8744 0800
The information contained in this leaflet is based on current taxation laws and other related legislation, including proposals and measures contained in the ADDITIONAL PRIHATIN SME ECONOMIC STIMULUS PACKAGE announcement on 6
April 2020. Every effort has been made to ensure that the information contained in this leaflet is accurate and based upon our understanding and interpretation of the relevant information obtained from the stimulus Speech, Appendices and
relevant sources, and is subject to the issuance of the relevant enactments.
© Baker Tilly Malaysia. All rights reserved. Baker Tilly Malaysia and its related entities in Malaysia trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal
entities.
Penang9-2, 9th Floor, Wisma Penang Garden,42, Jalan Sultan Ahmad Shah,10050 Penang.T: +60 4227 9258F: +60 4227 5258
Negeri Sembilan – SerembanLevel 2, Wisma Sim Du,37, Jalan Dato' Bandar Tunggal,70000 Seremban, Negeri Sembilan.T: +60 6762 2518 / 763 8936F: +60 6763 6950
Sabah – Kota KinabaluSuite No. 1-6-W2, 6th Floor,CPS Tower, Centre Point Sabah,No. 1, Jalan Centre Point,88000 Kota Kinabalu, Sabah.T: +60 8820 4941 / 943F: +60 8820 4942
Sabah – TawauNo. 194, 2nd Floor, Block B,Wisma DS, Jalan Bakau, 91000 Tawau, Sabah.T: +60 8977 1040F: +60 8976 4131
Phnom Penh (Cambodia)No. 87, Street 294,Sangkat Boueng Keng Kang I,Khan Chamkarmon, Phnom Penh, Cambodia.T: +855 2398 7100F: +855 2398 7388info@bakertilly.com.khwww.bakertilly.com.kh
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