Prihatin Rakyat Economic Stimulus Package

To Our Valued Clients

Further to the announcement of the "2020 Economic Stimulus Package" a month ago to mitigate the impact of the COVID-19 pandemic, our Prime Minister, YAB Tan Sri Dato' Haji Muhyiddin Bin Haji Mohd Yassin has on 27th March 2020 unveiled the second Economic Stimulus Package known as "Prihatin Rakyat Economic Stimulus Package". The 3 main thrusts of this RM250 billion package are preserving the welfare of the rakyat, supporting businesses and strengthening the country’s economy.

Some of the key measures as announced in the Prihatin Rakyat Economic Stimulus Package include:-

  1. Deferment for payment of income tax instalment is granted to Small and Medium Enterprises for a period of 3 months, commencing from 1st April 2020.
     
  2. Pre-retirement withdrawal of funds from Account B of Private Retirement Scheme of up to RM1,500 during the period from April 2020 to December 2020 is permitted without imposition of 8% withholding tax.
     
  3. The banking institutions have offered a 6-month moratorium for repayment, restructuring or rescheduling of loan and interest income or profit from the loan accrued during the moratorium period will only be brought to tax when it is received.
     
  4. Exemption from payment of Human Resources Development Fund levy is granted for all sectors during the period from April 2020 to September 2020.
     
  5. Wage Subsidy Programme is introduced to assist employers in retaining their employees where the Government will provide a wage subsidy of RM600 per month for each employee for a period of 3 months on the conditions that:-
    1. employers suffer a decrease in income of more than 50% since 1st January 2020;
    2. monthly income of the employee is less than RM4,000; and
    3. no retrenchment or imposition of unpaid leave or pay cut for the next 3 months after implementation of the programme.
       
  6. Employees Provident Fund will launch an Employer Consultation Service Programme on 15th April 2020 to provide options to employers for deferment of payments, restructuring and rescheduling of employers’ contribution.
     

For further information, kindly refer to the text of the speech for the Prihatin Rakyat Economic Stimulus Package.

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

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