KUALA LUMPUR (June 5): The government is rolling out a slew of measures for Malaysian micro, small and medium enterprises, ranging from tax rebates to special funds for different sectors in the economy under the RM35 billion Penjana economic package.  

In a nationally televised address, Prime Minister Tan Sri Muhyiddin Yassin also announced measures to help employees reskill and venture into the digital economy. 

To encourage new businesses, the government is providing a tax rebate of up to RM20,000 per year for three years for new SMEs that are formed and commence operations between July 1 and Dec 31.
 
It is also encouraging merger and acquisition activities, by exempting stamp duty exemption for M&A transactions that are completed between July 1, 2020 and June 30, 2021.  

Touching on the new costs of doing business due to Covid-19, Muhyiddin said the government will provide tax rebates for expenses such as personal protective equipment (PPE) purchase and Covid-19 screening tests.  

It will also continue with the 30% special tax rebate for those who reduce rental rates for commercial premises.  

To help Malaysians reskill, Muhyiddin said unemployed persons can claim a training allowance of up to RM4,000 from the Social Security Organisation (Socso), even if they do not contribute to the Employee Insurance Scheme.  

Malaysia Digital economic Corp (MDEC) will receive a RM25 million grant for the Global Online Workforce programme, to educate Malaysians on generating income via international e-commerce business, the prime minister added.  

MDEC will also partner select e-commerce platforms to facilitate a RM140 million matching grant, to drive SMEs towards online services, comprising training, seller subsidy and sales support.  

Muhyiddin also touched on other sectors such as agriculture, creative industry and technology, following inputs from industry players. 

To support the agriculture sector, an Agrofood Fund amounting to RM350 million is introduced. This is coupled with in-kind benefits for urban farming worth RM500 per person and RM50,000 per community. 

For the creative industry, a joint collaboration between MDEC, MyCreative Ventures and the private sector will implement programmes and financing facilities totalling RM225 million to jump-start the industry.  

As part of the digitalisation push, a National Technology and Innovation Sandbox will be set up under the Ministry of Science, Technology and Innovation with a fund of RM100 million to try out new technologies.

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