KUALA LUMPUR - Malaysia has approved RM10 billion (S$3.3 billion) to help firms suffering from the coronavirus outbreak, with most of the sum going towards more than doubling a wage subsidy to RM13.8 billion from the RM5.9 billion announced last month.
This comes after widespread complaints especially from small-medium enterprises (SME) over insufficient support in the RM250 billion stimulus package unveiled by the government on March 27, out of which only a tenth was actual fiscal spending, with the rest coming in the form of release of retirement savings and extension of credit.
Prime Minister Muhyiddin Yassin announced the new measures on Monday (April 6) saying it would benefit up to 4.8 million employees, as their employers must maintain them on the books for at least six months to qualify for the subsidy.
"This sector (SME) contributes over two-thirds of jobs in the country and nearly 40 per cent of the economy. There it is critical we ensure SMEs are stable and able to face the pressure and economic challenges that has hit all of us at this time," he said in an address televised over national television and various social media channels.
The previous subsidy of RM600 monthly for three months for staff with a monthly salary of up to RM4,000 will be increased depending on the number of workers a company employs.
Those employing 75 or fewer people, can obtain up to RM1,200 monthly in wage support for three months per worker earning under RM4,000.
Those with 76 to 200 workers can claim RM800, while the subsidy to larger firms will be maintained at RM600, although the sum can be claimed for 200 workers, instead of only 100 previously. Some 700,000 micro-enterprises will also receive a one-off grant of RM3,000 each, totalling RM2.1 billion.
The government's micro-credit scheme was also expanded to a total of RM700 million with zero interest, from the previous 2 per cent.
Landlords who afford their commercial tenants at least 30 per cent in discounted rental from April to June will be able to deduct the amount in their tax claims.
The SME Association had warned that up to 70 per cent of their members would run out of cash by the end of April, and that a quarter of Malaysia's 16 million-strong labour force could be out on the streets if the impact of the virus outbreak was not cushioned.
The two-week Movement Control Order put in place on March 18 had also put all non-essential commercial activity into hibernation, and the government has since doubled the period to April 14. Monday (April 6) is the 20th day of the MCO.
With the number of new infections still persisting over 100 daily, it is likely the movement curbs will be extended to at least the end of the month.
Malaysia on Sunday reported 179 new coronavirus cases, raising the total to 3,662. Four more people have died from the virus, raising the tally to 61.
