Additional Prihatin RM10 billion to help SMEs Amidst Covid-19 economic crisis

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PUTRAJAYA APRIL 6: The government today unveiled RM10 billion as an “Additional to the Stimulus Economic Package Prihatin” launched in March 27, to help the financial constraints faced by the small and medium industries (SMEs) following COVID-19 pandemic.

Prime Minister, Tan Sri Muhyiddin Yassin said, this allocation is to enable the SMEs to guarantee jobs to two-third of the total number of workers in the country.

“The SMEs contribute almost 40% to the national economy and that is why it is important for the government to ensure that SMEs could continue to sustain their businesses amidst the current challenges,” he said in a special deliberation on the Additional PRIHATIN for SMEs today.

The additional initiatives are: Firstly the salary subsidy that was announced on March 27 is raised from RM5.9 billion to RM13.8 billion. With the additional of RM7.9 billion all companies with local workers receiving salary of RM4, 000 and below will receive the subsidy with certain conditions.

Secondly, the PRIHATIN Special Grant amounting RM2.1 billion for all micro SMEs that is qualified. The government will give a special grant of RM3, 000 for every micro company that will benefit almost 700,000 companies.

Muhyiddin said, the special grant could only be given to micro SMEs that are registered with the Income Tax (LHDN) and their qualifications will be verified by the local government and the Companies Commission of Malaysia.

Thirdly, the government is reducing the foreign workers’ levy to 25% for all the workers whose permit ends on April 1 until December 31 2020. However this levy does not apply to maids.

The Prime Minister also said, to ensure the PRIHATIN and the Additional PRIHATIN initiatives could be implemented smoothly and fast, the LAKSANA unit has been set by the Ministry of Finance to monitor and report the progress and the implementation of all the initiatives to him and the Ministry of Finance. –Malaysia World News

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