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SME, are you waiting for help (assistance) from Government ?

#Covid19 has given the world lots of problem.

Malaysia government announced some packages.


In FEB 2020, PM7.5 (so-called interim Prime Minister) announced a RM20b package.

On 27.03.2020, PM8 (so-called not elected Prime Minister) announced a RM250b package (which including the RM20b package announced earlier)

What is available for SME ?

For SME, we need to look at 3 categories:-

(a) Financing / Loan (which affecting cash flow)

(b) Balance Sheet item (which affecting cash flow)

(c) Income Statement item (which affecting Profit / Loss, as well as cash flow)


Let's start from

(C) Income Statement (commonly known as P&L, Profit & Loss)

First item is Income Tax, as one of the biggest component in P&L,

Tax rate no change. No tax incentive. No tax relief.

Second, Wages or Salary Two ways SME being 'helped' by Government's Stimulus Package

1st - giving money to (Bantuan Prihatin Nasional - LHDN) B40 and M40 (hope they spent it so economy will be stimulated)

2nd - give money to employee or employer (Perkeso) IF they qualify for it as following...

Early March - Employment Retention Programme (ERP), before #MCO 27.03.2020 - Wages Subsidy Programme (ESP), during #MCO

These Wage Subsidy Program and Employee Retention Program look like the same but they are actually 'mutually exclusive'.

To qualify for Wages Subsidy Program [(RM600 per employee) x (max 3 months) x (Employee salary below RM4,000)], the business must suffered at least 50% dropped in Revenue / Sales / Turnover since 1st January 2020 (comparing to the corresponding period in year 2019)

3rd item - Electricity - Yes, some discount but nothing great about it to discuss here.

4th item - Internet Fee - Yes, some discount but nothing great about it to discuss here.

Some how, the statistic department don't have latest update for year 2018, but we believe the number of Contribution of SMES Employment in 2018~2019 won't be less than 65% or 2/3 of the working population of approximately 15 million or more.


(B) Balance Sheet (professional call it "Statement of Financial Position")

1. Tax Payable - can defer

2. EPF Payable - can defer

3. HRDF - exempted (but not helping much)

4. Loan - Moratorium for 6 months - GREAT NEWS for high gearing high debt SME but don't forget, you need to pay back in month 7 onward (could be a time bomb as well).


(A) Financing / Loan

Since revenue drop and most likely Collection also slow and bad debt will rise.... where to get CASH to pay for Salary and other overhead (don't forget to pay suppliers too)

1. Dig from own pocket. For most SME, nothing much left in own pocket/bank account.

2. Borrow from BANK.

GOOD NEWS here from Government.


For reference: Information By Crowe Malaysia PLT


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