Category   ARTICLE
Government Economic Stimulus Package for SMEs (Prihatin SME+)


Extraordinary times with extraordinary impact require extraordinary measures. Experience has shown that the Covid-19 global impact on the economy and our businesses is worse than those crises experienced in the past. Rest assured that SALIHIN is sincerely concerned and shares your pain in these Covid-19 trying times. We are committed to working with you to ensure your businesses are sustained and set on a path for recovery and thriving. 

As part of our commitment to you while Working From Home, we present to you and update on the Government’s announced additional Economic Stimulus Package Prihatin Rakyat (PRIHATIN) or PRIHATIN PLUS, on 6th April 2020, valued at RM10 billion tailored to ease the burden of SMEs. The additional measures include:


Wage Subsidy 

The wage subsidy programme announced on 27 March will be expanded from RM5.9 billion to RM13.8 billion, an increase of RM7.9 billion. Under this additional initiative, all companies with local employees earning a monthly salary each of RM4,000 and below will receive wage subsidies as follows:

  • For companies with a workforce of more than 200 people, the government will provide a wage subsidy of RM600 per month for every retained worker. However, the maximum number of workers that a company is eligible to claim for will be increased from 100 to 200 employees.
  • For companies with employees between 75 to 200 people, they will receive a wage subsidy of RM800 per month for every employee.
  • Finally, for companies with employees of less than 75 people, we will provide a wage subsidy of RM1,200 per month per employee. Through this improvement, companies will receive more benefits and assistance.
  • This assistance is for a 3-month period and is specifically for employers registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020 and are registered with the Social Security Organisation (SOCSO). It is estimated that 4.8 million employees will benefit from this initiative.
  • For employers opting to accept this assistance, they are required to retain their employees at least for a period of 6 months, that is 3 months during the period receiving the subsidies and 3 months thereafter.


Special PRIHATIN RM2.1 billion Grant

A Special PRIHATIN Grant amounting to RM2.1 billion will be established for eligible micro enterprises. A grant of RM3,000 will be provided to each company, benefitting almost 700,000 micro enterprises. The micro SMEs will have to register with LHDN to enjoy this assistance. The local authorities and SSM will provide the list of eligible micro enterprises to Government.


Registered Money Lenders Moratoriums for loan repayments to SMEs

The Government urges the registered money lenders who offer credit facilities under the Money Lenders Act 1951, to provide moratoriums to SMEs for loan repayments for 6 months beginning April 2020, similar to those provided by banks.


Abolishment of 2% interest rate to 0% under Micro Credit Scheme

  • The Government has abolished the 2% interest rate to 0% under the Micro Credit Scheme amounting to RM500 million under Bank Simpanan Nasional (BSN).
  • The soft loan scheme for micro enterprises is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 at 0% for each enterprise. A total of RM200 million fund will be allocated for this purpose. Applicants are given an option to choose either scheme to ensure more beneficiaries of this facility.


Rental Waiver or Discounts for SMEs

  • The Government waives or provides discounts for rentals to SMEs in the retail sector which are operating on premises owned by Government-Linked Companies (GLCs). GLCs such as MARA, PETRONAS, PNB, PLUS and UDA as well as several State Governments have agreed to give either discounts or rental waivers on their premises to SME tenants.
  • On the principle of burden sharing, the Government also urges owners of private premises to provide similar assistance to their tenants to reduce their rental rates. Owners of buildings or business spaces that provide rental reduction or waiver to tenants that consist of SMEs are given a further tax deduction which is equivalent to the amount of rental reduction for the months of April until June 2020. This further tax deduction is subject to the condition that the rental reduction is at least 30% of the original rental rate for that particular period.


25% reduction on foreign workers levey

The Government has reduced the levy on foreign workers by 25% to all companies with work permits that will expire in the period of 1 April to 31 December 2020. This reduction is not applicable to the domestic help sector.


Automatic 30-day moratorium for submission of document to SSM

Due to the difficulties faced by companies in submitting statutory documents as required by SSM during the MCO period, the Government has agreed to grant

  • An automatic 30-day moratorium from the date of MCO ends for companies to lodge the statutory documents to SSM.
  • A 3-month extension for the lodgement of financial statements for companies with financial year ended 30 September to 31 December 2019. Companies are required to apply to SSM for this extension with no fees imposed.

For full text of the Government announcement, click here. We also provide infographic of the above in Bahasa Melayu here.



For more information visit  Also, the IMSME.COM.MY, which is a portal managed by Credit Guarantee Corporation (CGC) in collaboration with BNM, has been established to support the execution of the PRIHATIN initiatives. This portal is ready to accept applications from SMEs on all the initiatives announced. So, other than applying for loans directly from the banking institution, all SMEs have an option to apply for loans through the IMSME portal. This portal provides myKNP services, that is financing advisory services for SMEs. 



We are ready to assist you with the required documentation to facilitate the process and to help you strategize to minimise the impact of Covid-19 for business recovery. Specifically, we can assist you on:

  • COVID-19 Business Impact Assessment
  • COVID-19 Strategic Business Continuity Plan
  • COVID-19 Business Recovery and Sustainability Roadmap
  • Application for the Government’s economic stimulus packages including the PRIHATIN PLUS.
  • Application for CGC Special Relief Facility (Loan/Financing up to RM1 million) 
  • Tapping any other available COVID-19 intervention package for businesses


For enquiries, contact us via our TollFree service 1-300-88-5678 (FREE) / 03 6185 9970 or email us at Our Work From Home operation hours are from Mon-Fri, 8.30am to 5.30pm. 

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