Financial Initiatives for SMEs during COVID-19...PTPTN loan. Credit card Moratorium does not apply...

Financial Initiatives for SMEs during COVID -19

A compilation of Financial Initiatives that is made available for SMEs during COVID-19.

*May subject to change and further announcement. Please check with the respective organisation/banks/agencies.

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DISCLAIMER

“The information provided by us is for general informational purposes only.All information in here is provided in good faith, however we make no representation

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Under no circumstance shall we have any liability to you for any loss or damage of any kindIncurred as a result of the use of the site or reliance on any information provided in here.

Your use of the site and your reliance on any information in here is solely at your own risk”.

FINANCIAL INITIATIVES

1. WAGE SUBSIDY2. EMPLOYMENT RETENTION PROGRAM (ERP)3. EMPLOYER COVID 19 ASSISTANCE PROGRAM (E – CAP)4. LOAN MORATORIUM5. BNM FINANCING FACILITIES6. MICRO CREDIT SCHEME BY CREDIT GURANTEE CORPORATION7. FOREIGN WORKER LEVY8. HRDF LEVY EXEMPTION9. TAX DEDUCTION FOR RENTAL 10. MORATORIUM OF SUBMISSION OF STATUTORY DOCUMENT TO SSM

1. WAGE SUBSIDY

2EMPLOYMENT

RETENTION PROGRAM (ERP)

EMPLOYMENT RETENTION PROGRAM (ERP)

3EMPLOYER COVID -19

ASSISTANCE PROGRAM (e–CAP)

e–CAP

Employer COVID-19

Assistance Programme

ABOUT e-CAP

EPF is extending the Employer COVID-19

Assistance Programme beginning 23 April 2020 to assist qualified Small and Medium Enterprise

(SMEs) that are registered under the

EPF.

Objective1. To helps affected

employers continue operating their businesses.

2. Enabling workers to keep their jobs

3. In line with the country’s economic stimulus programme

EligibilityCurrently only EPF

registered SMEs can apply to defer the

employer’s contribution for a period of 1,2 or 3

months based on these criteria

Criteria1. Must be a Small and

Medium Enterprise (SME) with 200 employees or less on payroll

2. Total monthly contribution payments up to Feb 2020 (Jan 2020 wage) are in order

3. Employers has fully paid up the employee’s share of the contribution for the month in application

How to applyEPF – registered employers can make their restructured payment via the following channels:

i-Akaun (Employer)EPF countersEPF – appointed counters

All restructuring plans will end by 30 Dec 2020

Criteriai – akaun (Employer)www.kwsp.gov.my

For further information, you may refer to the FAQ

via https://www.kwsp.gov.my/en/ecap-faq or reach out to your respective EPF

Employer Advisory Officer

https://www.kwsp.gov.my/en/ecp-faq

4LOAN MORATORIUM

What is loan moratorium?

It is a temporary deferment or suspension of loan/financing payment obligation.

Those who do not wish to take advantage of this measure will have to contact financial institutions to opt out from moratorium.

Automatic moratorium

to all individuals and SMEs. No need to

apply

Valid from1st April – 30th Sept

2020

No late paymentcharges

Credit score will not be affected

Eligibility for loan moratorium requirements

The moratorium is applicable t o all loans / financing denominat ed in Ringgit Malaysia

Must not in arrears for more t han 90 days as of 1st April 2020

13

Reducing balance

Flat rate

Type of interest / profit rate apply

Flat rate

Flat rate / reducing balance rate

Reducing balance

The interest is charged based on the outstanding balance, therefore the amount

of interest will decrease gradually

Flat rate

A fixed interest rate charged on the loan, monthly installment remains unchanged

01020304

Home loan

Auto loan

Personal loan

PTPTN loan

Credit card

Moratorium does not apply to credit card.

Credit card balancecan be converted to term loan of up to 3 years of not more

than 13% per annum

For unpaid minimum monthly payment for

3 consecutive months, will

automatically convert the

outstanding balance into a term

loan/financing

All cardholders regardless income level are eligible to participate in this

conversion package anytime from 1st

April until 31st Dec 2020. your account

should not be in arrears for more

than 90 days as of 1st April 2020

Contact details Bank Contact

Agrobank 1 300 88 2476www.agrobank.com.my

Affin Bank Berhad 03-2055 9000www.affinbank.com.my

Alliance Bank Malaysia Berhad 03-5516 9988www.alliancebank.com.my

AmBank (M) Berhad 03-2167 3000www.ambank.com.my

Bank Islam Malaysia Berhad 03-2726 7888www.bankislam.com.my

Bank Muamalat Malaysia Berhad 03-2059 1211/ 2615 7089/ 2698 8787www.muamalat.com.my

Contact details Bank Contact

Bank Simpanan Nasional 1 300 88 1900www.mybsn.com.my

Bank Muamalat Malaysia Berhad www.muamalat.com.my03-2059 1211/ 2615 7089/ 2698 8787

CIMB Islamic Bank Berhad www.cimbislamic.com.my03-2619 1188

Hong Leong Bank Berhad www.hlb.com.my03-7661 7777

Maybank Islamic Berhad www.maybank.com/islamic03-2070 8833

OCBC Al-Amin Bank Berhad www.ocbc.com.my/ocbc_alamin03-2034 5034

http://www.mybsn.com.my/http://www.muamalat.com.my/http://www.cimbislamic.com.my/http://www.hlb.com.my/http://www.ocbc.com.my/ocbc_alamin

5BNM FINANCING

FACILITIES

DEFINITION OF SMALL MEDIUM ENTERPRISE

18

STEPS TO APPLY FOR BNM FINANCING FACILITIES

Visit imsme.com.my

and key in financing

requirement

Share your business details

Register and login Compare and choose

01

02

03

04

6MICRO CREDIT SCHEME

BY CREDIT GUARANTEE

CORPORATION

Biz Bina-i BizMula-i BizWanita-i

BizBina -i

23

MARS

Objective

BizBina-i is a direct financing scheme that is catered specifically for

businesses that are affected by COVID-19

pandemic

JUPITER

Eligibility Criteria

• Meet National SME Development Council’s (NSDC) definition of a SME

• Must be a Malaysian-controlled and Malaysian-owned (at least 51% shareholding) business

• Exclusively for CGC’s existing financing customers* that are affected by COVID-19 pandemic

VENUS

Rate & Financing Amount

Rate 3.50%

Financing amount RM20,000 to RM200,000

BizBina -i

24

MARS

Financing tenure

Up to 5 years and 6 months (including a

moratorium period of 6 months on both principal

and profit)

JUPITER

Type of facility

Term Financing

VENUS

How to apply

1. Download form at https://www.cgc.com.my/download-forms/

2. The complete application form together with all supporting documents can be submitted to any CGC branches.

BizMula-i

25

MARS

Objective

BizBina-i is direct financing scheme to cater specifically for

businesses less than 4 years in operations

utilising the the BNM’s Fund for SMEs – All

Economic Sectors (AES) Facility.

JUPITER


• Meet National SME Development Council’s (NSDC) SME definition

• Malaysian-controlled and Malaysian-owned (at least 51% shareholding) company or business and must reside in Malaysia

• Business has been registered and/ or in operations for less than 4 years;

• Key person/ successor’s age must be at least 21 years old at the point of application and maximum of 65 years old upon full settlement;

• Business is registered with Companies Commission of Malaysia (SSM); or authorities/district offices in Sabah and Sarawak; or statutory bodies for professional service providers;

• Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.

VENUS


Rate 7.00%


BizMula-i

26

MARS

Financing tenure

Up to 5 years

JUPITER

Type of facility

Term Financing

VENUS

How to apply



BizWanita-i

27

MARS

Objective

A direct financing schemeto cater specifically forwomen entrepreneursthat business is less than 4years in operationsutilising the BNM’s Fundfor SMEs – All EconomicSectors (AES) Facility.The funds are designed tofacilitate greater accessto financing for viableSMEs.

JUPITER


• Meet National SME Development Council’s (NSDC) SME definition • A Malaysian-controlled and Malaysian-owned (at least 51% shareholding) company or business and must reside in Malaysia• Company or business of which at least 51% shareholding is owned by a woman/ women and the key person is a woman at point of application;• Business has been registered and/ or in operations for less than 4 years;• Key person/ successor’s age must be at least 21 years old at the point of application and maximum of 65 years old upon full settlement;• Business is registered with Companies Commission of Malaysia (SSM); or authorities/district offices in Sabah and Sarawak; or statutory bodies for professional service providers;• Shareholding by Public Listed Companies and Government Linked Companies (if any) in the SMEs shall not exceed 20%.

VENUS


Rate 6.80%


BizWanita-i

28

MARS

Financing tenure

Up to 5 years and 6 months (including a

moratorium period of 6 months on both principal

and profit)

JUPITER

Type of facility

Term Financing

VENUS

How to apply



7FOREIGN WORKER LEVY

Beginning 1st Jan 2018 employers will be responsible for paying the levy for their foreign workers.

All employers must bear the cost of levy payments for new foreign workers as well as foreign workers who have renewed their Temporary Employment Visit Pass (PLKS ).

30

31

STANDARD LEVY RATE

Approved SectorsManufacturingConstructionPlantationAgriculture

Services

Restaurant (cooks)

Cleaning and sanitation

Resort islands

APPROVED SECTORS

Sectors RatesManufacturing RM 1,250Construction RM 1,250Plantation RM 590Agriculture RM 410

Services

Restaurant (cooks) RM 1,850

Cleaning and sanitation

RM 1,850

Resort islands RM 1,250

SMEs PRIHATIN PLUS PACKAGE

• The foreign worker levy will be reduced by 25% for every company that has work permits that will expire in the period of April 1 to December 31, 2020.

• However, the levy reduction is not applicable to the domestic help sector eg: housemaids

8HRDF LEVY EXEMPTION

HRDF LEVY EXEMPTION

34

• HRDF registered employers from 63 sub-sectors are exempted from paying the mandatory Human Resources Development (HRDF) for six months.

• The levy exemption will come into effect from 15 April 2020 to 15 September 2020

• Employers with arrears in their levy or interest are not exempted from paying their arrears.

HRDF LEVY EXEMPTION (cont )

Any levy payments that are exempted during the six (6) months period will be AUTOMATICALLY refunded to the employer.

HRDF registered employers can continue with their training claim submission(s) as long as their available levy balance exceeds 50 per cent of the total amount claimed.

For an insufficient levy balance, employers’ training claim will be made in stages. The first payment will be disbursed based on the available levy balance while the remaining claim will be made when employer has sufficient levy balance.

Employers must apply for their training claim(s) within six (6) months from the training end -date. Additionally, at the time the training claims are made, employers levy balance must exceed 50 per cent of the total claim amount. The claim submission must be made within six (6) months from the training end-date. Upon submission, the employer must ensure at least 50 per cent of levy balance from the total amount claimed. For late submission employers are required to provide justifications for the late claim submission(s).

9TAX DEDUCTION

Owners of premises that provide a reduct ion or

waiver of rent to t enants of business premises

consist ing of Small and Medium Enterprises

(SMEs) are given a special deduct ion equal to the

amount of such rent reduct ion for rent s charge in April 2020 to June 2020.

Eligible to any taxpayer who leases the business

premises to any Small and Medium Enterprises

(SMEs).

The rate of this special deduct ion is equal to the amount of rent reduct ion of the business premises

provided to SMEs that meets the definit ion of

SMEs.

In order to qualify for a special deduct ion, the

reduct ion of rent provided must be at least 30% of

the original monthly rent charged

OVERVIEW

PROCESS OF THE TAX DEDUCTIONThis special deduction will be provided through the issuance of Income Tax Rules.Any person who reduce the rents of his/her/its business premises from the original rate charged to the tenant who is a SME is given a special deduction based on the reduction of the rent.

Example: A Sdn. Bhd. rented out the business premises which is a shop lot to B who is a SME, at rate of RM 5,000 a month (RM60,000 a year). A Sdn. Bhd. agreed to provide a reduction of rent to B for April, May and June 2020 by RM2,500 per month.

PROCESS OF THE TAX DEDUCTION (cont )

Without Special Deduction With special deductionMonthly rental income

RM5,000 RM5,000

Total annual rental income

RM60,000 RM60,000

50% rental reductionin April, May, June2020

RM5,000 x50% x 3 months

(RM7,500) (RM7,500)

Gross annual rentalincome

52,500 52,500

1Special deduction RM2,500 x 3months - (RM7,500)

Chargeable income RM52,500 RM45,000

2Tax payable @ 24% RM12,600 RM10,800

1: Assuming no other allowable direct expense claim.2: Tax rate based on current corporate tax rate.Calculations need to be done on a monthly basis where rates should not be less than 30% in the eligible months. However, if there is a reduction of rent made in the eligible month but the rate is less than 30% then the special deduction is not eligible for that month.

Supporting document required

A valid rental agreement Rental income statement Confirmation of tenant status as an SME Confirmation of rent reduction by any means

stipulated under the Income Tax Rules to be gazette.

10MORATORIUM OF SUBMISSION OF

STATUTORY DOCUMENTSTO SSM

OVERVIEW

The deadline for submission of statutory documents to SSM due during the MCO period has been extended to30 days from the last day of the MCO period.

Extension of time (EOT) is also given

for filing of the annual financial

statements with the SSM.

Company will need to apply for such extensionfrom CCM. No late submission penalty will be imposed.

030201Grace period fromsubmission of return form and payment of balance of tax

Extended deadline for submission of return form and payment of balance of tax

2 months from the due date of submission for accounting period ending

• 31st July 2019• 31st August 2019• 30 September 2019• 31st October 2019• 30th November 2019

• 30th April 2020

• 31st May 2020• 30th June 2020• 31st July 2020• 31 August 2020

E-filling: 1 month from the due date of submission for accounting period ending• 31st Dec 2019

31st August 2020

SUMMARY

EMPLOYMENT RETENTION PROGRAM (ERP)

WAGE SUBSIDYEMPLOYER COVID 19

ASSISTANCE PROGRAM (E – CAP)

Wage Subsidy Programme of RM 600/RM800/RM1200 for employees earning less than RM4,000 and employers experiencing 50% decrease in income since 1.1.2020

Immediate financial assistance for employees who have been instructed to take no pay leave by their employers who have been economically affected by COVID-19 pandemic.

e-CAP allows eligible SMEs flexibility to choose to apply for a deferment and restructuring of the employer’s share of EPF contributions for the months of April, May and / or June 2020.

BNM FINANCING FACILITIES

LOAN MORATORIUMMICRO CREDIT SCHEME BY

CREDIT GURANTEE CORPORATION

Wage Subsidy Programme of RM 600/RM800/RM1200 for employees earning less than RM4,000 and employers experiencing 50% decrease in income since 1.1.2020

1. Special Relief Facility (SRF) for COVID-19

2. All Economic Sectors Facility3. Automation and Digitalization

Facility4. Agrofood Facility5. Micro Enterprise Facility

1. BizBina-I2. BizMula-I3. BizWanita-i

SUMMARY (cont )

HRDF LEVY EXEMPTION

FOREIGN WORKER LEVY TAX DEDUCTION

25% reduced levy for foreign worker levy from 1st April 2020 until 31 Dec 2020 (except maid)

Exemption of HRDF levies for all sectors for 6 months beginning 1st April 2020

Additional tax deduction to private owners that provide rental rebates for April 2020 to June 2020

Automatic moratorium of 30 days from MCO last date to submit statutory documents to SSM

MORATORIUM OF SUBMISSION OF STATUTORY DOCUMENTS

TO SSM

END

A compilation of Financial Initiatives that is made available for SMEs during COVID-19.

*May subject to change and further announcement. Please check with the respective organisation/banks/agencies.

Brought to you by

Financial Initiatives for SMEs during COVID-19DISCLAIMERFINANCIAL INITIATIVES1. WAGE SUBSIDYSlide Number 5Slide Number 62�EMPLOYMENT RETENTION PROGRAM (ERP)�Slide Number 83�EMPLOYER COVID -19 ASSISTANCE PROGRAM �(e–CAP)��e–CAP��Employer �COVID-19 Assistance Programme 4�LOAN MORATORIUM��What is loan moratorium?��It is a temporary deferment or suspension of loan/financing payment obligation. ��Those who do not wish to take advantage of this measure will have to contact financial institutions to opt out from moratorium.�� Type of interest / profit rate applyCredit cardContact details Contact details 5�BNM FINANCING FACILITIES�DEFINITION OF SMALL MEDIUM ENTERPRISESlide Number 19STEPS TO APPLY FOR BNM FINANCING FACILITIES�6�MICRO CREDIT SCHEME BY �CREDIT GUARANTEE CORPORATION��Slide Number 22BizBina-iBizBina-iBizMula-iBizMula-iBizWanita-iBizWanita-i7�FOREIGN WORKER LEVY��Beginning 1st Jan 2018 employers will be responsible for paying the levy for their foreign workers. ��All employers must bear the cost of levy payments for new foreign workers as well as foreign workers who have renewed their Temporary Employment Visit Pass (PLKS).��STANDARD LEVY RATESMEs PRIHATIN PLUS PACKAGE8�HRDF LEVY EXEMPTION��HRDF LEVY EXEMPTIONHRDF LEVY EXEMPTION (cont)9�TAX DEDUCTION��OVERVIEWPROCESS OF THE TAX DEDUCTIONPROCESS OF THE TAX DEDUCTION (cont)Supporting document required10�MORATORIUM OF SUBMISSION OF STATUTORY DOCUMENTS�TO SSM��OVERVIEWSUMMARYSUMMARY (cont)END

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