PEMULIH ("PAKEJ PERLINDUNGAN RAKYAT DAN PEMULIHAN EKONOMI") STIMULUS PACKAGE

Yesterday, the PM announced the PEMULIH Stimulus Package, which entails a range of financial assistance for various sectors of the Public. Have a look at our Tax Update for more information:

PEMERKASA PLUS

On Monday, the Prime Minister announced the PEMERKASA Plus Stimulus Package valued at RM40 billion. 

Please click on the image below for the highlights.

PERMAI (“Perlindungan Ekonomi & Rakyat Malaysia”) Assistance Package

The Prime Minister announced the PERMAI Assistance Package valued at RM15 billion on 18 January 2021. A total of 22 initiatives will be implemented under the PERMAI Assistance Package, anchoring on three main objectives as follows –

• Combatting the COVID-19 outbreak
• Safeguarding the welfare of the people
• Supporting the business community

Prior to the PERMAI Assistance Package, the Government had unveiled various economic stimulus packages to alleviate the ill-effects of the Covid-19 pandemic such as Prihatin, Prihatin Plus, Penjana and KITA Prihatin totaling RM305 billion. Further allocations were also announced in Budget 2021 in relation to Covid-19.

Below are a select few of the highlights and tax initiatives under the PERMAI Assistance Package, which essentially enhances or extends previous measures announced –

Further details will follow as and when they are made available.

New Publication | SME: Navigating Through the Economic Stimulus Package

Business leaders have been putting their heads together to find the best action plan to sustain their business during this COVID-19 pandemic. Multiple initiatives have been announced by the Government to support SMEs in Malaysia. However, how would you know which one suits you best?

In our latest publication, SME: Navigating Through the Economic Stimulus Package, find out how you can benefit from these initiatives and which would best fit to your needs.

Click on the following image to download a copy of our latest publication:

Wage Subsidy Program

We have been receiving many enquiries regarding the issue of the PRIHATIN Wage Subsidy Program (hereinafter ‘’WSP’’) and Baker Tilly is keen to provide some insights on the WSP from what we have ascertained from the public releases made available:

What is WSP and Who will Benefit:

• WSP is the Malaysian government’s initiative to aid employers experiencing a decrease in more than 50% of their revenues since January 2020.
• The objective of WSP is to help employers in all sectors (except Government sector workers, foreign workers and expatriates) affected by the economic impact of the COVID-19 outbreak to continue in their operations and to retain their employees.
• Under the WSP, employers will be given a subsidy of RM600 per month for each employee earning a monthly salary of RM4,000 and below for a period of 3 months effective from 1 April 2020.

What are the Conditions of WSP:

• Employer and their employees must be registered with the Employment Insurance System (EIS) under the Social Security Organisation (SOCSO).
• Employer must make a declaration [“Akuan Pengisytiharan Program Subsidi Upah 50 (PSU50)”] (click here for the form) that the company is experiencing a decrease of more than 50% of its revenue by comparing its total sales revenue in January 2020 with those in the subsequent months.
• Employees with a monthly salary of RM4,000 and below and the scheme is limited to 100 employees for each employer (click here for the form).
• Employers must not terminate their employees from employment, instruct their employees to take unpaid leave or cut the salaries of their employees within a period of 3 months from receiving the wage subsidies and a subsequent 3 months period.

How to Apply for the Wage Subsidy:

• 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 https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme.

There is also a scheme under the Stimulus Package available for employers who have placed their employees on leave without pay during the COVID-19 crisis, and the scheme details can be found at https://www.perkeso.gov.my/index.php/en/kenyataan-media.

Please note that WSP and the scheme under the Employee Retention Program with PERKESO are mutually exclusive.

We will keep you updated on any further guidelines and announcements to be issued by the relevant authorities, if any.