Malaysia Covid-19 Government Assistance for Businesses

Covid-19 Malaysian Government
Assistance & Aid

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Cash-Aid for Workers
(announced on March 27, 2020)

C. Wage Subsidy Programme 

Workers of Government contractors

Govt will pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies.

Workers of Affected Businesses

Wage subsidy of RM600 a month for three months for employers with a 50% drop in business since Jan 1, for workers with a salary of below RM4,000.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Business Aid
(announced on March 27, 2020)
Still updating.....

  • A 6-month lease exemption on all premises owned by the Federal Government such as school canteens, nurseries, cafeterias, convenience stores and others. This includes all premises owned by agencies and statutory bodies of the Federal Government. 

  • Wage Subsidy Programme to assist employers in retaining their workers. RM600 per month salary replacement for 3 months to every employee earning less than RM4,000 and employers experiencing more than 50% decrease in their income since 1 January 2020. Employers must ensure that there is no retrenchment or imposing unpaid leave or forcing a wage cut for the next 3 months after the implementation of the programme. 

Ease cash-flow constraints for Businesses

  • The EPF will introduce the Employer Advisory Services (EAS) programme on 15 April 2020. This service includes options for deferral of payments, restructuring and rescheduling of employer contributions. 

  • Exempt payment for Human Resources Development Fund (HRDF) levy for all sectors for a period of six months beginning April 2020. 

  • Allow the postponement of income tax instalment payments to all SMEs for a period of 3 months beginning 1 April 2020. This is in addition to the previously announced measures where the Government has postponed tax instalment payments to affected businesses in the tourism sector for 6 months beginning 1 April 2020. For other affected sectors, they are also allowed to revise the amount of income tax imposed in the third, sixth and ninth instalments during the basic accounting period.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Loans and Financing
(announced on March 27, 2020)
Still updating.....

  • Banking institutions to offer a 6-month moratorium, conversion of credit card balance to term loans and restructuring of corporate loans.

  • The moratorium will be extended to loans from TEKUN, MARA and cooperatives as well as other government agencies providing financing to SMEs beginning 1 April 2020.

Govt and BNM will set additional allocation of RM4.5bil for SME and micro-entrepreneurs which will comprise of five initiatives.

  1. Increase funds to the Special Relief Facility (SRF) for SMEs by RM3 billion to RM5 billion. In addition, the interest rate for the entire fund will be reduced from 3.75% to 3.5%.

  2. Increase the size of the All Economic Sector Facility fund by RM1 billion to RM6.8 billion to enhance access to financing for SMEs.

  3. Provide additional funds of RM500 million under the Micro Credit Scheme, to a total of RM700 million for soft loans. The scheme will be administered by Bank Simpanan Nasional at 2% interest rate with no collateral. Loan eligibility requirements are also relaxed to a minimum of 6 months of operation compared to 1 year of operation. Maximum financing amount is also increased from RM50,000 to RM75,000 for each entrepreneur. The initiative is open to all micro-entrepreneurs in all business sectors including child-care centres, taxi and bus operators as well as the creative industry and online traders.

  4. SMEs with business records of less than 4 years can also leverage the BizMula-i and BizWanita-i schemes for financing up to RM300,000 under the Credit Guarantee Malaysia Berhad (CGC).

  5. Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide RM5 billion worth of guarantees and increase the guarantee coverage from 70% to 80% for SMEs that face difficulties in obtaining loans.


Loan Deferment

  • PTPTN loan repayment for all borrowers for 6 months. This initiative involves a sum of RM750 million.

  • Skills Development Fund Corporation (PTPK) borrowers for the same period beginning 1 April 2020 to 30 September 2020.

Social Financing Programme

Social financing programme for B40 entrepreneurs and people who lose their jobs. The programme will be a collaboration with Islamic banking institutions, the state Islamic religious council and key implementing partners. Social donations will be channelled in the form of initial capital for micro-entrepreneurs using zakat funds and matched with microfinancing at affordable rates.

The first phase of the collaboration between Bank Islam Malaysia Berhad and the Federal Territory Islamic Religious Council will commence in May 2020. Eligible entrepreneurs will be given training in entrepreneurship and financial management as well as support to develop their businesses.

Government Guarantees for Corporate Loans

The Government will provide a RM50 billion guarantee scheme with a guarantee of up to 80% of the loan amount for the purpose of financing working capital requirements. The scheme will be managed and subject to credit evaluation by Danajamin. The facility is targeted at viable businesses in all sectors facing difficulties due to the COVID-19 outbreak.

The minimum guaranteed loan size is RM20 million per business. This facility will be available for application from 1 May to 31 December 2020 or until the fund is fully utilised. 

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Food Security
(announced on March 27, 2020)
Still updating.....

  • RM1 billion for Food Security Fund.

  • Assistance to farmers and fishermen, including agricultural inputs to increase domestic production.

  • RM100 million for the development of infrastructure for food storage and distribution as well as crop integration programme.

  • Special funds of between RM100,000 and RM200,000 to each viable Pertubuhan Peladang Kawasan (PPK) and Pertubuhan Nelayan Kawasan (PNK) to develop short-term agro-food projects that can generate income within 3 to 6 months, ensuring sufficient food supply. The measure involves an allocation of RM64.4 million.

Summary of Government Assistance for Businesses


Businesses in the tourism sector allowed to defer monthly income tax instalment payments from April to September 2020

Affected companies due to Covid-19 allowed to revise their profit estimates for 2020 with respect to monthly income tax instalment payment, without penalty.

A discount of 15 per cent on monthly electricity bills for hotels, travel agencies, airlines, shopping malls as well convention and exhibition centres.

HRDF levies exempted for hotels and travel-related companies.

Exemption of six per cent service tax for hotels from March to August 2020.

Bank Negara Malaysia (BNM) to provide a special relief facility worth RM2 billion in the form of working capital for SMEs at an interest rate of 3.75 per cent.

Bank Simpanan Nasional to allocate RM200 million in microcredit facility at four per cent interest rate.

Stimulating the tourism sector

Personal income tax relief of up to RM1,000 on expenditure related to domestic tourism.

Malaysians will be eligible to get digital vouchers for domestic tourism of up to RM100 per person for domestic flights, rails and accommodation at licensed hotels.

Additional matching grants for tourism promotion will be provided. An allocation of RM500 million is provided for the vouchers and tourism promotion.

Relaxation of existing guidelines limiting use of hotels by government agencies to mitigate the reduced demand.

The approval process for existing loan funds to be further streamlined such as Bank Pembangunan’s Tourism Infrastructure Fund of RM1.5 billion.

Malaysia Airports Holdings Bhd to provide rebates on rental for premises at the airport as well as landing and parking charges.

The Covid-19 Government Economic Stimulus Package for
Agro-Food Businesses
(announced on February 27, 2020)


Financing to Sustain and Expand Agro-Food SMES

RM1 billion fund to provide food-producing SMEs low-interest rate loans of up to RM5 million per SMEs that can be used for working capital and also for capital expenditure. Fund will be offered for a maximum 8 years tenure and low financing rate at 3.75% per annum. 


In addition, the Government will allocate RM40 million towards helping small and
medium enterprises involved in agriculture and food production enhance their incomes,
through the following initiatives:
i) Establish wider network of storage facilities for food by FAMA to stabilise fluctuation of food items due to disruption of supplies;

ii) Grant to small enterprises to sell and market products on e-commerce platforms, such as enabling fishermen to sell directly to consumers; and
iii) Scaling up eUsahawan programs, particularly to facilitate Pusat Internet Desa as a hub for facilitating e-commerce, providing small scaled entrepreneurs to access wider pool of customers.

The Covid-19 Government Economic Stimulus Package for
(announced on February 27, 2020)


A. Financing Businesses

1. Existing Financing and Loans

Bank Negara Malaysia (BNM) to ensure that all financial institutions provide assistance by way of restructuring, rescheduling and providing repayment moratorium for Covid-19 affected business and individual loans.

Stamp duty exemption of 100% will be given on loan agreements from 1 March 2020 to 31 December 2020.

2. New Financing Facilities

  • Bank Negara Malaysia (BNM) to establish a RM2 billion Special Relief Facility to provide cashflow assistance through low interest (3.75%) working capital to affected Small Medium Enterprises (SMEs). In addition, Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide the banks an 80% guarantee on these loans. Each SME can borrow up to RM1 million and the loan tenure is up to 5.5 years.  The repayment only starts after the 6 months payment moratorium.


  • Bank Simpanan National (BSN) to provide RM200 million low-interest (4%) Microcredit loans to affected businesses.

B. Taxation Breathers

1. Monthly Income Tax Deferments

Businesses in the tourism industry such as travel agencies, hoteliers and airlines will be given a deferment of their monthly tax instalments for six (6) months from 1 April 2020 to 30 September 2020.

Other businesses affected by current economic developments, will be allowed to revise their monthly tax instalments earlier, on the taxable amount due in the third
month of instalments, should the third instalment falls in the year of 2020.


2. Service Tax Exemptions

Service tax on accommodation services provided by hotels, defined as operators of accommodation premises as prescribed under Group A, First Schedule of the Service Tax Regulations 2018 are exempted from levying service tax on taxable services provided for a period of six (6) months from 1 March 2020 until 31 August 2020.


3. Tax Deductions
Expenses incurred by companies to provide employees with disposable Personal Protective Equipment (PPE) such as face masks are eligible for tax deduction under
subsection 33(1) of ITA 1967. Whereas, expenses for non-disposable PPE products can be claimed as a capital allowance.

C. Reduce Business Operating Costs

1. Exemption from the Human Resource Development Fund Contribution
To help reduce costs for companies affected by COVID-19, an exemption from HRDF levies for a period of six (6) months effective 1 April 2020 to 30 September 2020 will be given. The eight (8) categories of businesses covered by this exemption are air travel,
domestic ground transport, convention centres, shopping malls, travel tour operators, hotels, franchises & hypermarkets.

2. TNB's 15% Discount on Electricity Bills

TNB's will give a 15% discount on electricity bills to six categories of businesses, namely hotel operators, travel agencies, local airlines offices, shopping malls, convention centres and theme parks for a period of six (6) months from 1 April 2020 to 30 September 2020


C. Initiatives to Stimulate Tourism-related Businesses


1. Rental Rebates at Airports

Malaysia Airport Holdings Berhad (MAHB) will provide rebates on rental for premises at the airport as well as landing and parking charges.

2. Spur Duty-free Purchases
The eligibility period for the purchase of duty-free goods by individuals entering Malaysia is reduced from 72 hours to 48 hours and the threshold for duty-free goods is increased from RM500 to RM1,000 from 1 April 2020. This is applicable at duty-free shops located at the international airports.


3. Income Tax Relief for Spending on Domestic Tourism

A special income tax relief of up to RM1,000 is allowed for individuals' spending on domestic holidays from 1 March 2020 to 31 August 2020. The allowed spending is limited to: i) Accommodation expenses at premises registered with Ministry of Tourism, Arts and Culture Malaysia (MOTAC); and ii) Entrance fees to tourist attractions.

4. RM100 Domestic tourism voucher

Digital vouchers for domestic tourism of up to RM100 per person for domestic flights, rails and hotel accommodations for all Malaysians.


5. Matching grant for tourism promotions

RM500 million matching grants for the vouchers and tourism promotions.


6. Government guidelines relaxation

Relaxation of existing guidelines limiting the use of hotels by Government agencies as part of mitigating the reduced demand.


Location: Malaysia

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The Covid-19 Government Prihatin Rakyat Economic Stimulus Package
(announced on March 27, 2020)


Ministry of Finance Prihatin Website >


Prime Minister Tan Sri Muhyiddin Yassin announced a RM250 billion People-Centric Economic Stimulus package (Prihatin) which will benefit all segments of the society.

  • RM128 billion for the people’s welfare

  • RM100 billion to support businesses, including Small and Medium Enterprises (SMEs)

  • RM20 billion has been announced in the earlier stimulus package

Healthcare Aid

  • RM500 million allocation for the Health Ministry to ramp up its resources. 

  • RM1 billion will be allocated to the purchase of equipment and services to combat Covid-19


  • RM2 billion to strengthening the country's economy

  • RM10 billion cash aid for the lower-income B40 and middle-income M40 groups

RM20 billion has been announced in the earlier stimulus package

Announced on March 23.2020

  • RM130mil will be distributed equally to all states 

  • RM600mil for the Health Ministry for the purchase of equipment and to hire contract staff

  • Employees Provident Fund contributors aged below 55, can withdraw RM500 for up to 12 months.


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