Support is coming for SME’s through Pemulih Aid Package

In a special address, Prime Minister Tan Sri Muhyiddin Yassin on Monday 28 June 2021 announced a financial aid package worth RM150bil known as the “Pakej Perlindungan Rakyat dan Pemulihan Economi” (Pemulih) for the people and businesses to support them during the tough times of the ongoing covid-19 pandemic.

Key Takeaways of the Pemulih Aid Package for Small Medium Enterprises (SMEs)

Entrepreneur Digitisation Empowerment Programme (Pupuk)

– Additional RM100 million for SMEs to get matching grants of up to RM5,000 for purchase or subscription of digital systems

– Shop Malaysia Online and Go-eCommerce Onboarding campaigns targeting micro- and handicraft entrepreneurs to move their businesses online

Prihatin Special Grant (GKP) 3.0 & 4.0

– Additional RM500 to help eligible recipients (including SME owners) with payment expected by mid July

– Additional RM500 to eligible recipients (including SME owners) with payment expected in September and November

Loan Moratorium

Six-month moratorium for all individual borrowers and micro entrepreneurs — no documentation needed as all applications will be automatically approved. Applications will open from July 7, 2021.

Wage Subsidy Scheme

– With an allocation of RM3.8bil, Government will support up to 500 workers per employer with an assistance of RM600/employee for four months with no salary limitations (removal of RM4,000 salary limit)

Four months breakdown:

– Two months for all sectors in the second phase of NRP

– Two months for sectors categorised as negative (not allowed) in the third phase of NRP

Badly-Hit Economic Sectors

– Hotel operators, theme park operators, shopping malls and tour operators to get three month extensions on electricity bill discounts of 10% from October-December

– One-off RM3,000 assistance to be given to sports facilities’ operators

– Government to allocate RM100 million as assistance for creative arts sector

- RM3,000 one-off assistance for registered travel agencies when the country moves to third phase of NRP

HRD Corp Levy

– Employers unable to operate under phase one of the NRP will be exempted from HRD Corp levy for two months

– Employers from new sectors included as a result of the expansion of the Human Resources Development Fund Act 2001 will be given an extension until Dec 2021

For more information, click Pemulih Aid Package (Prime Minister’s Annoucement Speech)