KUALA LUMPUR: Prime Minister Tan Sri Muhyiddin Yassin once again used everyday Malaysians as examples to illustrate the benefits of the additional allocations under the Prihatin Rakyat economic stimulus package for small-medium enterprises.
Muhyiddin, who had previously used 'Makcik Kiah' to demonstrate the highlights of the Prihatin stimulus package for individuals and families when it was first rolled out on March 27, today added Lee Beauty Salon, Restoran Mi Kolok Hj Salleh and Syarikat Surjit Kaur as examples of local small-time entrepreneurs.
“The first example is Lee Beauty Salon, a micro SME involved in the hairstyling business. The salon has two local workers with a monthly income of less than RM4,000.
"The owner, Madam Lee, wishes to boost her business once the MCO (Movement Control Order) period ends. With the government initiative, she would benefit from a three-month wage subsidy totalling RM7,200 and a RM3,000 micro grant. The overall benefit which Madam Lee receives is RM10,200,” he said.
The prime minister, speaking via a live telecast, cited Restoran Mi Kolok Hj Salleh in Kuching Sarawak as his second example.
“Mi Kolok is delicious. Say, the restaurant has five local workers with a monthly income of RM4,000 and below (each), and two foreign workers. In order to maintain its cash flow during the MCO, the restaurant owner is eligible to apply for RM50,000 in micro credit from BSN (Bank Simpanan Nasional) and a wage subsidy totalling RM18,000.”
He said the restaurant owner, in addition, would also enjoy savings by being exempted from paying Employees’ Provident Fund (EPF) and Human Resources Development Fund (HRDF) contributions totalling RM8,400; RM5,200 in tax exemption, a discount on foreign workers’ levy (RM2,300) and a discount for electricity bills of RM300.
He said Haji Salleh would save a total of RM34,200 within three months, not including the micro credit loan.
The last example the prime minister cited was Syarikat Surjit Kaur Sdn Bhd, a small furniture manufacturer with 15 workers.
He said five of the local workers earn less than RM4,000 monthly, while the remaining workers, both foreign and local, earn more than RM4,000.
“To ensure that the company is able to maintain its cash flow during the MCO, Syarikat Surjit Kaur may apply for a Special Relief Facility (SRF) totalling RM500,000 and wage subsidy totalling RM18,000.”
Muhyiddin said the company would also enjoy exemptions in EPF and HRDF contributions of RM8,400, discounts for foreign workers’ levy (RM4,600), MCO micro tax deferment (RM32,700) and a RM100 discount in electricity bills.
“The benefits do not include the SRF of RM63,800,” he said.
Muhyiddin however said companies that opted for the Wage Subsidy programme would have to retain their workers for six months.
Earlier, the prime minister announced that the government has allocated an additional RM10 billion for SMEs under the Prihatin economic stimulus package.
He said of the total, RM7.9 billion has been allocated for the Wage Subsidy programme, an increase from RM5.9 billion to RM13.8 billion.
He said the additional allocation includes a total of RM2.1 billion in grants that would be channelled to micro businesses registered with the Inland Revenue Board (IRB).