Malaysia government has announced 40 initiatives via 3 thrusts

A. Empower People

A1. Wage Subsidy Programme

The wage subsidy programme will be extended for a further three months with aThe wage subsidy programme will be extended for a further three months with asubsidy of RM600 per employee for all eligible employers

The current wage subsidy program will also be enhanced to allow employers receiving wage subsidy to implement reduced work weekAllow employers receiving wage subsidy to implement reduced work week(e.g. 4-day work week with a reduced pay of 20%). Allow employers toreceive wage subsidy for employees on unpaid leave, subject to employeesreceiving the subsidy directly (only applicable for tourism sector andbusinesses which are prohibited from operating during CMCO)

A2. National Employment Services Job Portal Upgrade

A3. Hiring and Training Assistance for Businesses

The Government will introduce incentives to encourage the hiring of theThe Government will introduce incentives to encourage the hiring of theunemployed as follows:

• Youth
  • RM600 per month for apprenticeships for school leavers and graduates for upRM600 per month for apprenticeships for school leavers and graduates for upto 6 months
• Unemployed Workers
  • Below 40 years old: RM 800 per month for employment of unemployed for up toBelow 40 years old: RM 800 per month for employment of unemployed for up to6 months
  • 40 years old and above or persons with disability: RM 1,000 per month foremployment of unemployed for up to 6 months
  • Training allowance of RM4,000 per individual will alsobe extended to those retrenched but not coveredunder the Employment Insurance System (EIS)

A4. Reskilling and Upskilling Programmes

A5. Gig Economy Social Protection and Skilling

A6. Flexible Work Arrangement Incentives

To sustain the new normal of work-from-home, the Government will supportTo sustain the new normal of work-from-home, the Government will supportemployers and employees with the following:

• Further tax deduction for employers which implement Flexible WorkFurther tax deduction for employers which implement Flexible WorkArrangements (FWAs) or undertake enhancement of their existing FWAs(effective 1st July 2020)
• Individual income tax exemption of up to RM5,000 to employees who receive ahandphone, notebook & tablet from their employer (effective 1st July 2020)
• Special individual income tax relief of up to RM2,500 on the purchase ofhandphone, notebook & tablet (effective 1st June 2020)

A7. Child Care Subsidy

To ease the transition to the new normal of working-from-home, the Government willTo ease the transition to the new normal of working-from-home, the Government willsupport working parents through the subsidy of child care expenses:

• eVouchers of RM 800 per household for mobile childcare services, to be utilisedeVouchers of RM 800 per household for mobile childcare services, to be utilisedfrom now till end of August 2020
• Increase in income tax relief for parents on childcare services expenses, from RM2,000 to RM 3,000 for Year of Assessment (YA) 2020 and 2021

There will also be incentives to encourage child care centres to comply with the newThere will also be incentives to encourage child care centres to comply with the newnormal and to incentivise certification of early education practitioners:

• One-off grant of up to RM5,000 per childcare centre registered with the MinistryOne-off grant of up to RM5,000 per childcare centre registered with the Ministryof Women, Family and Community Development (up to 31st December 2020) tocomply with new healthcare SOPs
• Incentive to train new practitioners for child nursing andearly education course under Ministry of Women,Family and Community Develop

A8. MY30 Public Transport Subsidy

To encourage mobility and reduce the burden of costs of transportation, theTo encourage mobility and reduce the burden of costs of transportation, theGovernment will:

• Introduce an unlimited monthly travel pass costing RM30 for use on all railIntroduce an unlimited monthly travel pass costing RM30 for use on all railservices (MRT, LRT, Monorail), BRT, RapidKL buses and MRT feeder buses

A9. Social Assistance Support for Vulnerable Groups

A10. PEKA B40 Healthcare Support

A11. Internet Connectivity for Education & Productivity

B. Propel Businesses

B1. Micros and SMEs E-commerce Campaign

B2. “Shop Malaysia Online” for Online Consumption

B3. Technical and Digital Adoption for SMEs and MTCs

B4. MyAssist SME One Stop Shop

B5. PENJANA SME Financing (PSF)

Additional financing facility to eligible SMEs:

• The banking sector will offer an additional RM2 billion of funding to assist SMEsThe banking sector will offer an additional RM2 billion of funding to assist SMEsadversely impacted by COVID-19 sustain business operations at a concession rateof 3.5%. This financing facility, with an emphasis to finance new SME customersto Banks, will be made available in mid-June 2020 with a maximum loan size ofRM500,000 per SME.

B6. PENJANA Tourism Financing (PTF)

B7. PENJANA Microfinancing

Dedicated funding support for micro enterprises via:

• New funding program for SMEs and micro enterprises at an interest rate of 3.5%New funding program for SMEs and micro enterprises at an interest rate of 3.5%
• Aggregated approved financing will be capped at RM50,000 per enterprise
• RM50 million is earmarked for women entrepreneurs

B8. Bumiputera Relief Financing

B9. SME Go-scheme for Liquidity Support

B10. Accelerated Payment Terms for GLC and Large Corporates’Accelerated Payment Terms for GLC and Large Corporates’Supply Chain

B11. Tax Relief for COVID-19 Related Expenses

Extend the period and expand the scope of expenses allowed as tax deduction orExtend the period and expand the scope of expenses allowed as tax deduction orcapital allowance for COVID-19’s prevention, including:

• Covid-19 testingCovid-19 testing
• Purchase of PPE and thermal scanners

B12. Financial Stress Support for Businesses

Ease financial stress of business through:

• 50% remission of penalty for late payment of sales tax & service tax due and50% remission of penalty for late payment of sales tax & service tax due andpayable from 1st July 2020 to 30th September 2020
• Extension of special tax deduction for renovation and refurbishment of businesspremises to 31st December 2021
• Extension of Accelerated Capital Allowance on eligible capital expenses includingICT equipment to 31st December 2021
• Extension of special deduction equivalent to 30% reduction in rental for SMEs to30th September 2020

B13. Social Enterprises Elevation

B14. Spur Set Up of New Businesses

To catalyse establishment of new businesses, financial relief will be provided in theTo catalyse establishment of new businesses, financial relief will be provided in theform of:

• Income tax rebate up to RM20,000 per year for 3 years of assessment for newlyIncome tax rebate up to RM20,000 per year for 3 years of assessment for newlyestablished SME between 1st July 2020 to 31st December 2021
• Stamp duty exemption for SMEs on any instruments executed for Mergers andAcquisitions (M&As), for period between 1st July 2020 to 30th June 2021

C. Stimulate the Economy

C1. Dana PENJANA Nasional

C2. National Technology and Innovation Sandbox

C3. Digitalisation of Government Service Delivery

C4. National “Buy Malaysia” Campaign

C5. ePENJANA Credits in e-wallet

Encourage contact-free payment through the provision of:

• RM 50 worth of e-wallet creditsRM 50 worth of e-wallet credits
• Additional RM50 in value through vouchers, cashback and discountsby e-wallets
• Only for offline/physical purchases

This is applicable to all Malaysians aged 18 and above; and earning less thanThis is applicable to all Malaysians aged 18 and above; and earning less thanRM100,000 annually

C6. Incentives for Property Sector

Tax exemption for purchase of properties:

• Home Ownership Campaign (HOC) to be reintroduced:
  • Stamp duty exemption on the instruments of transfer and loan agreement forStamp duty exemption on the instruments of transfer and loan agreement forthe purchase of residential homes priced between RM300,000 to RM2.5 millionsubject to at least 10% discounts provided by the developer. The exemption onthe instrument of transfer is limited to the first RM 1 million of the home pricewhile full stamp duty exemption is given on loan agreement effective for salesand purchase agreements signed between 1st June 2020 to 31st May 2021.
• RPGT exemption for disposal of residential homes from 1st June 2020 to 31stRPGT exemption for disposal of residential homes from 1st June 2020 to 31stDecember 2021 (This exemption is limited to the disposalof three units of residential homes per individual)
• In addition, the current 70% margin of financing limitapplicable for the third housing loan onwards forproperty valued at RM600,000 and above, will beuplifted during the period of the HOC, subject tointernal risk management practices of financialinstitutions.

C7. Tax Incentives for Purchase of Passenger Cars

Tax exemption for purchase of passenger cars:

• Full sales tax exemption on locally assembled carsFull sales tax exemption on locally assembled cars
• 50% sales tax exemption on imported cars

C8. Extended Service Hours in the New Normal

C9. Malaysia as Attractive Horizon for Businesses

Tax incentives for company relocating into Malaysia:

• 0% tax rate for 10 years for new investment in manufacturing sectors with capital0% tax rate for 10 years for new investment in manufacturing sectors with capitalinvestment between RM300 - RM500 million
• 0% tax rate for 15 years for new investment in manufacturing sectors with capitalinvestment above RM500 million
• 100% Investment Tax Allowance for 3 years for existing company in Malaysiarelocating overseas facilities into Malaysia with capital investment aboveRM300 million
• Special Reinvestment Allowance for manufacturing and selected agricultureactivity, from YA 2020 to YA 2021.
• Additional operating expenditure for Malaysian Investment Development Authority(MIDA) to undertake marketing and promotional activities
• Establishment of Project Acceleration & Coordination Unit (PACU) at MIDA
• Enhancement of Domestic Investment Strategic Fund
• Manufacturing License approval for non-sensitive industry within 2 working days

C10. Tourism Sector Support

Tax incentives for the tourism sector:

• Tourism tax exemption from 1st July 2020 to 30th June 2021Tourism tax exemption from 1st July 2020 to 30th June 2021
• Extension of service tax exemption for hotels to 30th June 2021
• Extension of period for income tax relief of RM1,000 for tourism expenses to31st December 2021
• Extension of period for deferment of tax instalment payment for tourism industryto 31st December 2020

C11. Arts, Culture, Entertainment, Events and ExhibitionsArts, Culture, Entertainment, Events and ExhibitionsSector Support

C12. Agriculture and Food Sector Support

C13. Commodity Sector Support

C14. Proposed COVID-19 Temporary Measures Act

C15. Sukuk Prihatin