Malaysia News

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With reference to the recent announcement by Prime Minister, Tan Sri Muhyiddin Yassin on 1st May 2020 (Friday), from 4th May 2020 (Monday) onwards most of the economic sectors and business activities will be allowed to resume operations with conditions subject to Standard Operating Procedures (SOPs) by related authorities.

Hence, our Malaysia office will resume operations as usual from 05/05/2020 (Tuesday). All employees and visitors are strictly advised to adhere to the guidelines and SOPs recommended by Ministry of Health and The Malaysian National Security Council.

Thanks for your continuous support.

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As Malaysia Government has further extended the movement control order to 12/05/2020, late payment penalty for those forms (SST Return, including Sales and Service Tax for the period of Jan'20 to Feb'20 and Feb'20 to Mar'20) due on 31 March 2020 and 30 April 2020 will be waived if the payment has been made latest by 31 May 2020.

SST Extension

MITI Application to Resume Work

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  1. List of Additional Sectors Allowed to Operate Under the Movement Control Order (MCO) or Enchased MCO
    • Automotive industry (limited to exports of CBU, parts and components, as well as after-sale services, e.g., repair and maintenance)
    • Machinery and equipment industry
    • Aerospace industry
    • Science, professional and technical services, including R&D (limited to legal services, services incidental to oil and gas, R&D activities related to COVID-19, and testing labs for the sectors allowed to operate)
    • Social health services including registered traditional and complementary medicine (TCM) practitioners
    • Hardware shops, electrical and electronic (E&E) shops
    • Laundry services (only those offering full-service and does not include self-service laundrettes)
    • Construction projects and services related to construction works:
      • Projects whereby the main contractors are G1–G2
      • Projects that have achieved physical progress of 90% and above
      • Tunneling works
      • Maintenance works
      • Sloping works
      • Emergency works that are consequent to contractual obligations
      • Maintenance, cleaning and drying of stagnant water, spraying of pesticides at construction sites which prevent the breeding of Aedes mosquitoes and other pests
      • Other works that if left incomplete may result in danger
      • Building projects with 70 IBS score and above
      • Construction projects with accommodation facilities for workers, such as centralised quarters for workers or workers’ camp
      • Professional services related to the construction industry including architects, engineers, town-planners, land surveyors, quantity surveyors, project managers, facility managers as well as other relevant services
  2. How long does it take to process the application and how is the approval letter given to the company?
    • Processing will take up to five (5) days
  3. All companies with prior approval from MITI are encouraged to re-apply in CIMS 2.0 to get the approval letter with QR code which can facilitate the movement of workers and operations
  4. For those have been approved by the Ministry of Health / Ministry of Agriculture and Food Industries / Ministry of Domestic Trade and Consumer Affairs / Ministry of Primary Industries and Commodities / Ministry of Housing and Local Government / Local Authority to operate during MCO period, are encouraged to apply from MITI to get the QR Code
  5. Company with multiple businesses and sites shall apply separately
  6. The company must display the approval letter in the premise
  7. The company must appoint one or more coordinators to coordinate preventive measures of Covid-19 outbreaks in the workplace
  8. The person appointed shall complete a daily report at http://survey.dosh.gov.my/laporanhariancovid19/ during MCO
  9. Companies shall brief to employees on Covid-19 disease and preventative measures to be followed
  10. Daily body temperature and symptom screening should be done daily at the factory / premises entrance
  11. If the body temperature reading is 37.5 ° C or above, or has symptoms, the employee is not allowed into the company's premises and the company must refer the worker (with the mask wearer) to the nearby Panel Clinic or Health Clinic
  12. The company shall provide hand sanitizer at the entrance and all common areas, as well as make sure the use of face masks by each employee. Companies need to keep on-the-job social distancing
  13. The cleaning process should be carried out three (3) times a day especially in common spaces
  14. The company must ensure every employee's vehicle undergoes a thorough sanitation and disinfection process before use
  15. Employee vehicles provided by the company are not allowed to cross the border / zone and are only allowed to transport workers within the area / zone only
  16. In the event of an employee being infected with Covid-19, the company will be responsible for the full medical expenses, on-premises disinfection process and other related costs
  17. Program Saringan Prihatin (PSP)
    • Screening program for the COVID-19 outbreaks carried out for workers including foreign workers for companies permitted to operate during the period of the Movement Control Order
    • FREE of charge
    • Provided by service provider appointed by Perkeso: https://psp.perkeso.gov.my/psp-service-provider.html
    • First phase:
      • Focus on screening for employees of companies in the red or yellow zone as well as companies with foreign workers
      • Through sampling of the nose and mouth through a designated service provider
    •  Second phase:
      • Expected to begin in the first week of May 2020
      • This screening will be carried out for employees who have not been screened during the first phase
      • Through blood droplets by the PSP Panel Clinic.
      • Performed twice on the first day (Day 1) and the seventh day (Day 7) before the screening results can be released
    •  Only employees who register as SOCSO contributors are eligible
    • Employees must register individually through the Perkeso PSP Portal using the following information
    • Employee screening is based on an appointment with a service provider, either at the employee's premises or at the service provider's designated premises for sampling purposes
    • The screening results will take 48 hours after the sample is taken.
    • Employees can check the results of the screening through the Perkeso PSP Portal

e CAP

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  1. What is e-CAP?
    • Deferment and restructuring of Employer Share Contribution Payment for 推迟及重组雇主缴交金予
    • April, May and June 2020 contributions (March, April & May 2020 wages) 薪水月份3月、4月及5月
  2. Who is eligible?
    •  SME 中小型企业
    • Have 200 employees or less on payroll 不超过200雇员
    • Ensure that all monthly contribution payments (both employee and employer portions) up to the February 2020 contribution date (January 2020 wage) are in order 一月(薪水月份)或之前的所有公积金都缴齐
    • Ensure that the employee’s share of the payment for the contribution months being applied for (April, May or June) has been paid up 确保在e-CAP期间雇员部分公积金都缴交
  3. The deferred contribution for the respective months can then be settled over a maximum period of 3 months 相应月份的递延缴款可以推迟长达3个月的时间缴付
    • Example: For April contributions, restructured payments will start from July 2020 up to a maximum of 3 months ending September 2020 例如4月份的缴款,重组付款将从7月开始至至最迟9月缴清
  4. Waiver or reduction of late payment charges can be requested upon the approved payment restructuring plan 雇主可以要求赦免或减少申请e-CAP期间的迟缴罚款
  5. Employer has to pay the dividend accrued on the contributions 雇主需支付该缴款的股息
  6. Late payment charges are charges imposed on employers who failed to make their contribution payment on time 未能及时缴付的缴款会被征收罚款
  7. As for dividends, it will be credited to the respective member’s account following the due contribution month to ensure that no dividend losses are borne by members as a result of late contribution payments 雇主部分的缴款还是会记入相应月份雇员的户口,以确保雇员没有因为雇主的推迟而损失股息
  8. Eligible employer may submit the application via the e-CAP function in i-Akaun (Majikan) on a monthly basis 合格的雇主能从4月23日起在每个月的基础上于雇主的iAkaun申请

EPF FAQ

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  1. What are the components of wage?
    • Payments which are subject to EPF contribution include:
      • Salary
      • Bonus
      • Allowance
      • Commission
      • Incentives
      • Arrears of salaries
      • Payment in respect of unutilised annual or medical leave
      • Paid maternity leave
      • Paid study leave
  1. What are non-wages?
    • Payments which are not liable for EPF contribution are:
      • Service charge
      • Overtime payment
      • Gratituity
      • Retirement benefits
      • Retrenchment
      • Temporary lay-off & termination benefits
      • Payment in lieu of notice of termination of employment
      • Travelling allowance or the value of any travelling concession
    • * The above list is not exhaustive.
  1. Can the monthly contributions be paid bimonthly or combined as one month?
  1. What should an employer do if he/she wishes to contribute more than the stipulated rate for employer’s share?
    • An employer can make a Voluntary Excess (VE) Contribution by completing Form KWSP 17 (MAJ) - Notice to Contribute More Than Statutory Rate (Employer). The contribution paid must be rounded up to the nearest ringgit and must not be backdated.
  1. If an employee chooses to contribute more than the stipulated rate, can the employer deduct from the employee’s own salary for that purpose?
    • Yes you can, but only if the employee has opted for Voluntary Excess (VE) Contribution and after completing Form KWSP 17A (AHL) - Notice to Contribute More Than Statutory Rate (Employee).
  1. Are salaries paid by hour subject to EPF contribution?
    • Yes, if an employee works any day in a month and receives wages in excess of RM10.00 (whether of daily, hourly or piece-rated salary), he/she is liable to make an EPF contribution.
  1. Who does ‘Employee Liable to Contribute’ refer to?
    • Permanent employees
    • Contract employees
    • Part time employees
    • Temporary employees
    • Probationary employees
    • Directors receiving salary/wages
    • Employees who have made full withdrawal under the Incapacitation Withdrawal and have since recovered and are re-employed in any service
    • Employees who have made a 55 Years Withdrawal and are below 75 years old and still working in any occupation
    • Employees who have made a Pensionable Employees and Optional Retirement Withdrawal and are working with employers other than the Federal or State Governments, or any statutory bodies or local authorities
    • Employees who have made Pensionable Employees Withdrawal and were re-employed after the retirement age
  1. Is a part-time worker or employee who works with more than one employer subject to EPF contribution?
    • Yes, they are subject to EPF contribution
  1. Do non-Malaysian employees have to contribute?
    • No, non-Malaysian employees are not required to contribute, but they are given the option to contribute. If an employee has opted to contribute, he/she and the employer are liable to contribute and not allowed to revoke the option made.
  1. Do foreign companies hiring Malaysian citizens need to contribute?
    • Yes, if the foreign company has registered and is operating in Malaysia.
  1. Can an employer deduct the employer’s share of contribution from an employee’s salary?
    • No. According to Section 47(1) of the EPF Act 1991, any employer who makes deductions or attempts to make deductions from an employee's wages or remuneration, either whole or in any part of the employer's contribution, faces imprisonment for no more than six years or a fine of not more than RM20,000, or both.