SMEs stimulus package: Madam Lee, Haji Salleh and Surjit Kaur can now smile

PUTRAJAYA (Bernama): After Mak Cik Kiah, today is the turn of Madam Lee, Haji Salleh and Surjit Kaur to "smile", thanks to the unveiling of an additional stimulus package of RM10bil for small and medium-sized enterprises (SMEs) to mitigate the financial impact of the Covid-19 crisis.

Like Mak Cik Kiah earlier, these characters were used by Prime Minister Tan Sri Muhyiddin Yassin for a simple illustration of how the RM10bil special stimulus package will benefit the people.

For example, he said, Madam Lee, the owner of Lee Beauty Salon, an SME micro business with two local workers each earning less than RM4,000 a month, can get a wage subsidy for three months totalling RM7,200 and a micro grant of RM3,000.

"The total benefits due to Madam Lee amount to RM10,200, ” he said in his address on the Prihatin Package for SMEs (Additional Measures), which was carried live on national television, on Monday (April 6)

Under the package, companies employing up to 75 local workers with a salary of RM4,000 and below are eligible for a monthly wage subsidy of RM1,200 per worker for three months.

Apart from this, the government is also giving a Prihatin special grant of RM3,000 for every SME micro company with an allocation of RM2.1bil.

Muhyiddin also gave the example of Restoran Mi Kolok "sedap" Hj Salleh in Kuching, Sarawak which can receive benefits totalling RM34,200 over a three-month period, excluding micro-credit loans.

"Let’s say this restaurant has five local workers with salaries of RM4,000 and below each, and two foreign workers. To meet the

cashflow requirements during the movement control order (MCO) period, the restaurant owner can get a BSN micro-credit loan of RM50,000 and wage subsidies totalling RM18,000 for five workers, ” he added.

He said the owner can also enjoy savings of RM8,400 through exemption of contributions to the Employees Provident Fund (EPF) and Human Resource Development Fund (HRDF), RM5,200 in tax deferment, RM2,300 in foreign worker levy discount and RM300 in electricity bill discount.

For Syarikat Surjit Kaur Sdn Bhd, a small-sized company in the furniture manufacturing sector with five local workers earning RM4,000 and below, 10 foreign workers and the rest, local workers, with salaries of more than RM4,000, Muhyiddin said the owner stands to receive benefits totalling RM63,800.

"To ensure the company can meet its cash-flow needs during the MCO period, Syarikat Surjit Kaur can get a Special Relief Facility loan of RM500,000 and wage subsidies totalling RM18,000.

"Besides this, the company can also enjoy savings through exemption of EPF and HRDF contributions totalling RM8,400, foreign worker levy discount of RM4,600, micro SME tax deferment of RM32,700 and electricity bill discount of RM100, ” he added. - Bernama