Recently, with the drastic changes in the economy, a Supplementary stimulus package for SMEs in Malaysia was released by the prime minister. 3E Accounting provides you with understandable highlights on the SME grant budget 2020. Their services include the incorporation of businesses and helping you understand the finances of setting up a business. That is why you can find a resources page on their website where you can read the most recent updates on several grants and the Malaysia budget.
The SME grant budget 2020 allocated an additional RM7.9 billion for the 3-month wage subsidy program, based on the number of employees. On the other hand, the qualifying wage threshold remains the same, which is RM4000 and below.
What are the subsidy amounts granted?
- Rm1,200 will be granted to companies that have less than 75 employees.
- For companies with 75 to 200 employees, RM800 will be granted.
- Lastly, companies with over 200 employees will receive RM600.
What are some of the conditions for the grant?
One of the additional conditions is that companies have to be registered with the SSM or local authorities before January 2020. They also have to be registered with the SOCOSO, and lastly, the companies must retain their employers for six months
The other changes in finances regarding companies
A special grant by PRIHATIN consists of RM2.1 billion will be established for micro-enterprises that are eligible for it. And a grant of RM300 will be provided to each company that is registered with IRB. The local authorities and SSM will determine the list of eligible micro-enterprises and give it to the government.
The interest rate will be reduced from 2% to 0% on the Mirco Credit scheme under the Bank Simpanan Nasional. The program for soft loans for micro-companies will also be extended to TEKUN Nasional with a loan limit of RM10,000 with 0% interest rate. For this, a total of RM200 million will be provided. Applicants will have a choice to choose between either of the schemes so they can do what’s best for them.
Moreover, the tax deduction will be expanded from April to June to private business premise owners that provide the reduction of the rental to SMEs. The rental reduction must be of at least 30% of the original rate.
A reduction of 25% in foreign workers’ levy payments for all companies expiring from 1 April to the end of the year, but this reduction cannot be applied to domestic workers.
A grant of the 30-day automatic moratorium from the last date of the MCO to enable the filing of statutory documents required by the SSM. Additionally, the deadline to submit a financial statement has also been extended to 3 more months after the last date of the MCO. This is applied to the companies with financial year-ends of 30 September to 31 December 2019. Nonetheless, companies will need to apply for the extension from SSM. No late charges will be applied to those companies.
When you set up a company, you need to know the financial state of the country and the grants you can receive. That is the only way you can make the right and educated decision. To help you with these decisions, 3E accounting is at your service. They provide you with experienced accountants to help people who are new to the industry.
By providing you with details of recent grants and schemes, 3E Accounting makes sure that its customers know the conditions of each choice they make. They use the highest quality technology so that they’re up to with the modern world. The fear of losing data and financial files will be eradicated once you work with them.
Whether you are starting a restaurant or a clinic, 3E accounting will help you by giving you the best marketing strategies and the right financial planning. 3E Accounting has guides on everything from employment if expatriates to GST registration. To start working with them, you’ll have to submit a file of several essential documents and contact information. As well as a form that 3E will provide you with. If you’re still not convinced about trusting 3E Accounting, you can consult them on various financial matters for the low cost of RM1000.
When you submit your files to them, your company is essential to them just as much as it is for you.