PEMULIH Stimulus Package

PEMULIH Stimulus Package

To Our Valued Clients

On 28th June 2021, the Government has announced the PAKEJ Perlindungan Rakyat Dan Pemulihan Ekonomi or PEMULIH Stimulus Package worth RM150 billion with the following three (3) main focuses:-

continuing the Prihatin Rakyat agenda;
supporting business continuity; and
increasing vaccination.

Salient points of the PEMULIH Stimulus Package are as summarised below:-

i. Wage Subsidy Programme ["WSP"] 4.0
 
Under this WSP 4.0 announced by the Government, a subsidy of RM600 per employee (restricted to 500 employees for each employer) will be provided, without any condition on the salary limit of the employees
The wage subsidy will be given for a period of:-
 
2 months for all sectors in Phase 2 of the National Recovery Plan; and
another 2 months for sectors categorised under the negative list in Phase 3 of the National Recovery Plan
With the removal of the condition for the salary limit of employees earning RM4,000 or less, employers can now apply for wage subsidies in respect of all employees (up to 500 employees)
ii. Tax Deduction of Expenses Relating to Provision of Vaccination Centres
 
To encourage employers participating in Program Imunisasi Industri COVID-19 Kerjasama Awam-Swasta, companies are allowed tax deduction for expenses incurred on cost of equipment and services for preparation of their premises to be used as vaccination centres ["PPV"]
Besides, the scope of tax deduction for contribution related to COVID-19 through community or charity projects will be expanded to include contribution to PPV
iii. HRDF Levy Exemption
 
Companies that are not allowed to operate during Phase One of the National Recovery Plan will be given exemption from payment of HRDF levy for 2 months automatically
In addition, employers from the new sectors which are required to contribute to HRDF due to the expansion of coverage under the Pembangunan Sumber Manusia Berhad Act 2001 will be given exemption from payment of HRDF levy up to the payroll month of December 2021
iv. Moratorium on Loan Repayment
 
All individual borrowers (B40, M40 and T20 groups) and micro entrepreneurs are allowed a 6-month moratorium without the need to fulfill any conditions, such as reduction in income or loss of employment
No documentation is required to be provided when applying for the moratorium and approval will be granted by the banks automatically
Affected small and medium enterprise ["SME"] entrepreneurs can also apply for the said moratorium, subject to review and approval of the banks
Application for loan moratorium will commence from 7th July 2021

For further information, kindly refer to the text of the speech for PEMULIH Stimulus Package (in Bahasa Malaysia only).

Please do not hesitate to contact us if you need any clarification on the foregoing.