RSM Malaysia

2020 Economic Stimulus Package Highlights

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Ease the cash flow of affected businesses

  • Deferment of monthly income tax instalment payments for businesses in tourism sector.
  • Companies affected by Covid-19 are allowed to revise profit estimates for 2020 with respect to monthly income tax instalment payments without penalty.
  • 15% discount in monthly electricity bills to hotels, travel agencies, airlines, shopping malls, conventions and exhibitions centres.
  • To exempt HRDF levies for hotels and travel related companies.
  • To exempt the 6% service tax for hotels (w.e.f. Mar-Aug’20).
  • Malaysia Airport Holdings Berhad (MAHB) will provide rebates on rental for tenants, landing and parking charges at airports.
  • BNM to provide a Special Relief facility worth RM2 billion for SMEs at 3.75% interest rate.
  • BSN to provide RM200 million microcredit facility at 4% interest rate to affected businesses

Assist affected individuals 

  • RM600 one-off payment each is given to taxi drivers, tourist bus drivers, tourist guides and registered trishaw drivers. 
  • Sign of appreciation for government staff: A special monthly allowance of RM400 for medical doctors and medical personnel; and RM200 for immigration and related front-line staff (from Feb’20 until the end of pandemic).
  • Government provide RM50 million to subsidise short courses in digital skills and highly skilled courses. 
  • Malaysian workers retrenched can rely on the EIS with a current fund of RM1.1 billion. EIS also increase the claimable training cost from RM4,000 to RM6,000 for the affected sectors. A daily training allowance of RM30 per day will be provided to trainees under EIS.

Stimulate tourism sector

  • Personal income tax relief of up to RM1,000 on expenditure related to domestic tourism.
  • Digital vouchers for domestic tourism of up to RM100 per person for domestic flights, rails and hotel accommodations for all Malaysians. 

Rakyat’s assistance

  • Minimum EPF contribution by employees reduced by 4% from 11% to 7% (with effect from 1 April 2020 to 31 Dec 2020) 
  • Payment of RM200 to all Bantuan Sara Hidup (BSH) recipients scheduled for May 2020 will be brought forward to March 2020. An additional RM100 will be paid into the bank accounts of all BSH recipients in May 2020. Subsequently, an additional RM50 will be channelled in the form of e-tunai.

Promoting quality investments 

  • Waiving of the listing fees by Securities Commission and Bursa Malaysia for one year, for companies seeking listing on LEAP or ACE markets, and Main market with market capitalisation of less than RM500 million.
  • BNM provide SME Automation & Digitalization Facility of RM300 million at an interest cost of 3.75%
  • Accelerated capital allowances over a two-year period on expenses incurred on machinery and equipment including ICT.
  • Tax deduction of up to RM300,000 on renovation and refurbishment cost.
  • Import duty and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for 3 years commencing 1 April 2020.
     

KEY CONTACTS

Mr Yong Kam Fei
Director
E: [email protected]

Mr LeeWee Tak
Head of Outsourcing
E: [email protected]


 

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