COVID-19 is causing a major impact on business owners and employees alike, because of fear and uncertainty, leaving us feeling powerless, worried and anxious. How are we going to sustain the business? Are we going to survive this pandemic?
But, did you know that there are a number of support measures and incentives that your business can access to help you through these trying times? These measures are enshrined in the Government’s PENJANA (Pelan Jana Semula Ekonomi Negara) or the National Economic Recovery Plan (Malaysia) which was introduced in response to the pandemic. The Plan focuses on 3 main thrusts: Empower People, Propel Businesses, and Stimulate the Economy.
We have put together a handy guide on these incentives to make sure your business gets the most out of these stimulus packages.
HIRING & TRAINING ASSISTANCE FOR BUSINESSES
What: Incentives to encourage hiring the unemployed:
| Youth | RM600 per month for apprenticeships for school leavers and graduates for up to 6 months |
| Unemployed | Workers Below 40 years old: RM800 per month for employment of unemployed for up to 6 months 40 years old and above or persons with disability: RM1,000 per month for employment of unemployed for up to 6 months Training allowance of RM4,000 per individual will also be extended to those retrenched but not covered under the Employment Insurance System (EIS) |
Duration: Applications open from mid-June to end-December 2020
Application: https://penjanakerjaya.perkeso.gov.my/index.php
FLEXIBLE WORK ARRANGEMENT INCENTIVES
What:
- Further tax deduction for employers which implement Flexible Work Arrangements (FWAs) or undertake enhancement of their existing FWAs (effective 1st July 2020)
- Individual income tax exemption of up to RM5,000 to employees who receive a handphone, notebook & tablet from their employer (effective 1st July 2020)
- Special individual income tax relief of up to RM2,500 on the purchase of handphone, notebook & tablet (effective 1st June 2020)
SOCSO will also provide: Coverage for workers involved in accidents while working at home under the Employment Injury Scheme
Duration: Beginning June 2020
Application: Not necessary
MICROs & SMEs E-COMMERCE CAMPAIGN
What: Business digitalisation through a co-funded programme with MDEC and e-commerce platforms. Participating e-commerce platforms will provide the following to eligible MSMEs: > On-boarding training > Seller subsidy > Sales support
Duration: June to September 2020
Registration: Go-Commerce Website
TECHNICAL & DIGITAL ADOPTION FOR SMES & MTCS (Mid-Tier Companies)
What: Grants and loans to eligible enterprises for adoption or subscription of digitalisation services under the following programmes:
- SME Digitalisation Matching Grant totalling RM100 million, in partnership with telecommunication companies
- SME Technology Transformation Fund totalling RM500 million loan (application opens from July 2020)
- Smart Automation Grant capped at up to RM1 million per company
Duration: Beginning June 2020
Application: MDEC Website
PENJANA TOURISM FINANCING (PTF)
What: Funding facility for the tourism sector
Duration: Beginning July 2020
Application: SME Bank
PENJANA MICROFINANCING
What:
Funding support for micro-enterprises via:
- New funding program for SMEs and micro-enterprises at an interest rate of 3.5%
- Aggregated approved financing will be capped at RM50,000 per enterprise
- RM50 million is earmarked for women entrepreneurs
Duration: Beginning June 2020
Application: Tekun Website
BUMIPUTERA RELIEF FINANCING
What:
- Financial assistance for Bumiputera-owned businesses in the form of: Working Capital, Operational Expenditure, System Automation, Equipment and expenditure to implement social distancing practices (eg. for PPE)
- Financing of RM 100,000 – RM 1 million for up to 5 years at 3.5% p.a. interest rate. Moratorium of up to 6 months from disbursement
Through MARA,
- RM300 million working capital loans to assist affected Bumiputera entrepreneurs including training colleges
- Maximum loan amount of RM1 million with 3.5% p.a interest rate
Duration: Beginning June 2020
Application: PUNB Website
TAX RELIEF FOR COVID-19 RELATED EXPENSES
What:
- Expenses allowed as tax deduction or capital allowance for COVID-19 prevention, including: COVID-19 testing, purchase of PPE and thermal scanners
Duration: Immediately
Application: Not necessary
TAX INCENTIVES FOR COMPANY RELOCATING INTO MALAYSIA
What:
Tax incentives for company relocating into Malaysia:
- 0% tax rate for 10 years for new investment in manufacturing sectors with capital investment between RM300 – RM500 million
- 0% tax rate for 15 years for new investment in manufacturing sectors with capital investment above RM500 million
- 100% Investment Tax Allowance for 3 years for existing company in Malaysia relocating overseas facilities into Malaysia with capital investment above RM300 million
- Special Reinvestment Allowance for manufacturing and selected agriculture activity, from YA 2020 to YA 2021.
- Additional operating expenditure for Malaysian Investment Development Authority (MIDA) to undertake marketing and promotional activities
- Establishment of Project Acceleration & Coordination Unit (PACU) at MIDA
- Enhancement of Domestic Investment Strategic Fund
- Manufacturing Licence approval for non-sensitive industry within 2 working days
Duration: July 2020 to December 2021
Application: MIDA Website
If you haven’t already taken advantage of these incentives, don’t delay! Get in touch with us at Quadrant Biz Solutions today to find out more!
For full info, visit PENJANA’s website.