Prime Minister Tan Sri Muhyiddin Yassin has announced a new RM15 billion ‘Perlindungan Ekonomi dan Rakyat Malaysia’ (PERMAI) stimulus package on 19 January 2021, covering 22 initiatives with the following three main objectives:
- Combatting the Covid-19 outbreak
- Safeguarding the welfare of the people
- Supporting the business continuity
The initiatives include measures to:
- Secure employments
- Relief SME’s cash flow burdens
- Reduce business commitment
- Protect employees from Covid-19
Key Highlights of PERMAI assistance package in supporting business continuity include:
- HRDF levy exemption for companies unable to operate during the Movement Control Order (MCO) and Conditional Movement Control Order (CMCO) periods.
- All employers (all sectors) operating in the MCO states are eligible to apply for Wage Subsidy 3.0 of RM600 per employee for one month.
- Special tax deduction for company providing a reduction of at least 30% of the business premises rental to both SMEs and Non-SMEs from the original rental rate until 30 June 2021.
- Temporary Measures for Reducing the Impact of Covid-19 Act 2020 has been extended. The effective period of inability to perform contractual obligations by individuals and businesses has been extended to 31 March 2021.
- Maximum financing of RM1 billion for the Danajamin Guarantee Scheme with the expanded scope of financing covering working capital up to 10 years. This scheme also allows foreign-owned companies operating in Malaysia to obtain this guarantee with the requirement that 75% of the workforce are Malaysian.
- Special discount of 10% on electricity bills from January to March 2021 for the following business sectors: hotel operators, theme parks, convention centres, shopping malls, local airlines offices as well as travel and tour agencies. In addition, electricity rebates will be given to domestic and non-domestic users at a rate of 2 Sen per kilowatt-hour, equivalent to a 9% reduction in electricity bills from 1 January until 30 June 2021.
The summaries below provide a good overview of the PERMAI assistance package:
- PwC TaXavvy, Issues 3-2021 | Perlindungan Ekonomi & Rakyat Malaysia Assistance Package (PERMAI)
- Grant Thornton Tax Alert | Perlindungan Ekonomi dan Rakyat Malaysia (PERMAI) Assistance Package
- EY Tax Alert (Special Edition) | PERMAI Assistance Package
- Deloitte Tax Espresso – Special Alert | PERMAI Assistance Package – Tax Related Measures
- Bakertilly Tax Bulletin 19 Jan 2021 | PERMAI (Perlindungan Ekonomi & Rakyat Malaysia) Assistance Package
Full speech of the PERMAI Assistance Package is available here.
Summaries and full speech of Budget 2021 are available here.