On 28 June, Prime Minister Tan Sri Dato’ Mahiaddin Yassin announced RM150 billion Pakej Perlindungan Rakyat dan Pemulihan Ekonomi “PEMULIH” Stimulus Package with RM10 billion fiscal injections. PEMULIH is the second-largest stimulus package since the RM250 billion PRIHATIN stimulus package that was announced in March 2020.
The three main focus of PEMULIH are:
Below are some of the highlights of the PEMULIH package in supporting business continuity:
- Human Resource Development Corporation (HRD) levy payments will be automatically exempted for two months for employers that are unable to operate during phase one of the recovery plans.
- Employers from the new sectors from the expansions of the Human Resources Development Fund Act 2001 will be given a levy extension until 31 December 2021.
- 10% electricity bill discounts will be extended until December 2021 for hoteliers, theme parks, convention centres, shopping malls, local airlines offices, and travel agencies.
- Wage Subsidy Programme (WSP) 4.0 will be supporting 500 employees per employer with RM600 per employee for four months.
- There will be no salary limit conditions which previously were capped at RM4,000 a month.
- Two months of the WSP4.0 will be given to all sectors in the second phase of the National Recovery Plan (NRP).
- Another two months for sectors categorised as negative in the third phase of NRP.
- Extension of PenjanaKerjaya Programme with several improvements such as:
- Salary eligibility from RM1,500 to RM1,200 for the Malaysianisation programme to give incentive for the employer to hire local workers.
- Employment contract period will be reduced from 12 months to 6 months for employees aged 50 and above, disabled persons, and ex-convicts.
- Increase of RM20 billion guarantees ceilings from Syarikat Jaminan Pembiayaan Perniagaan (SJPP) to assist SME’s business expansion as well as for working capital.
- Additional RM2 billion from Bank Negara Malaysia to aid Micro SMEs and SMEs to get access to financial assistance.
- Prihatin Special Grant (GKP) 4.0 amounted to RM1,000 will be distributed to Micro Enterprises in September and November 2021.
- Additional RM100 million for SME Digitalisation Grant for Micro SMEs and SMEs to get matching grant of up to RM5,000 for purchase or subscription of digital systems.
- A six-month blanket moratorium for all individual borrowers across all income brackets and SMEs and all applications will be automatically approved.
The summaries below provide a good overview of the PEMULIH Stimulus Package:
- PwC TaXavvy, Issue 17-2021 | PEMULIH Stimulus Package
- Baker Tilly Tax Updates 29 June 2021 | PEMULIH (Pakej Perlindungan Rakyat dan Pemulihan Ekonomi) Stimulus Package
- Grant Thornton Tax Alert, 28 June 2021 | Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH)
Summaries and full speech of PEMERKASA+ initiative is available here.
Refer to PEMULIH infographic here.
Full speech of PEMULIH Stimulus Package is available here.