THE COVID-19 GLOBAL PANDEMIC

Malaysia is still at “war” to control the spread and ill effects of the COVID-19 GLOBAL PANDEMIC.

NCCIM is in solidarity with the Government in its effort to combat the COVID-19 outbreak; and calls for the same solidarity from all businesses and residents of the nation.

NCCIM strongly reiterates the need for collective responsibility of all stakeholders to ensure efficacy in the nation’s efforts to combat the outbreak; and the collective strict compliance to the SOPs is a necessity.

The Government of Malaysia has introduced 5 ECONOMIC STIMULUS PACKAGES, totalling RM330 billion, to mitigate the economic risks arising from the COVID-19 pandemic; and to ensure the well-being of the Malaysians and the survival of businesses during this period.

The packages were announced in five (5) stages entail:

1. Economic Stimulus Package announced on 27 February 2020 (RM20 billion).

This is the first package announced to mitigate the impact of COVID-19 outbreak and reinvigorate the growth of the Malaysian economy, through protecting the welfare and well-being of Malaysian citizens by catalysing citizen-centric economic growth in boosting household spending & implement people-centric projects.

2. PRIHATIN Economic Stimulus Package (ESP) announced on 27 March 2020 (RM250 billion).

The PRIHATIN Economic Stimulus Package, injected an additional RM250 billion into the economy with the aim to ease businesses’ cashflow, assist affected individuals, & stimulate demand for the domestic travel and tourism sector.

3. PRIHATIN SME Economic Stimulus Package (PRIHATIN SME+) announced on 6 April 2020 (RM10 billion).

This is an additional allocation of RM10 billion to further support businesses, particularly SMEs with the purpose of strengthening the nation’s economy by promoting quality investment by leveraging on public investments & provide incentives to encourage private investment.

4. Pelan Jana Semula Ekonomi Negara (PENJANA) announced on 5 June 2020 (RM35 billion).

The fourth package comes in 3 thrusts with 40 key initiatives. Some of the measures issued under PENJANA include new tax incentives, financial assistance for small and medium-sized businesses (SMEs), and job protection initiatives.

5. Perlindungan Ekonomi Dan Rakyat Malaysia (PERMAI) assistance package announced on 18 January 2021 (RM15 billion)

The PERMAI package was spread over 22 initiatives aimed at combating the Covid-19 outbreak, safeguarding the welfare of the people and supporting business continuity following the implementation of the second movement control order (MCO 2.0). In general, the PERMAI assistance package improves on the existing ongoing initiatives and also accelerates the implementation of the related initiatives.

OTHER ASSISTANCE & INITIATIVES entail:

FINANCING FOR SMALL AND MEDIUM ENTERPRISES

Apart from the above stimulus packages, the Government through Bank Negara Malaysia has provided additional funds worth RM4.5 billion to assist SMEs which covers 5 key initiatives, that are; Special Relief Facility (SRF) , All Economic Sectors (AES) Facility, Micro Credit Scheme, BizMula-i and BizWanita-i Schemes, & Government Guarantee Schemes by SJPP.

There are also new Initiatives established to assist businesses, & many more Grant & Financial scheme provided by the relevant institutions.

OTHER ASSISTANCES FOR COMPANIES FACING CASH FLOW CONSTRAINTS

In reducing the burden of SMEs in terms of payments towards EPF, HRDF and taxes, several measures have been introduced by the relevant authorities, & they are;

➡ Employer Advisory Services (EAS) Program

➡ Employer COVID-19 Assistance Program (e-CAP)

➡ Human Resources Development (HRD) Levy Exemption

➡ Postponement of Income Tax Instalment Payments

➡ Wage Subsidy Program

While in assisting the B40 Entrepreneurs, the Government had established the iTEKAD program which is a social financing program, introduced by Bank Negara Malaysia in collaboration with Islamic banking institutions, state Islamic religious councils and key implementing partners.