KUALA LUMPUR, June 5 (Bernama) — Tan Sri Muhyiddin Yassin said the government would implement measures and tax incentives to help more than 900,000 small and medium enterprises (SMEs) and entrepreneurs who were affected by the COVID-19 pandemic.
To encourage the setting up of new SMEs, the Prime Minister said the government would provide an income tax rebate of up to RM20,000 per year for the first three years of assessment to them, subject to the stipulated conditions.
“This income tax rebate will be given to new companies set up and operating between July 1 2020 and Dec 31, 2021,” he said when announcing the National Economic Recovery Plan (PENJANA) aired over radio and television today.
To encourage SMEs to increase their competitiveness in doing business through merger and acquisition, he said the government would grant stamp duty exemption on mergers or acquisitions to transactions completed between July 1, 2020 and June 30, 2021.
He said PENJANA with the theme “Together Revitalising the Economy” was introduced as an immediate step to develop and boost the country’s economy in the short term, involving 40 initiatives worth RM35 billion.
The Prime Minister commended the efforts made by social enterprises in balancing business goals and social responsibility during the Movement Control Order (MCO) period.
“I was informed that during the MCO period, although some social enterprises were facing difficulty, they continued to raise funds to help the target community, especially the marginalised group.
“The government will provide matching grants amounted to RM10 million through the Malaysian Global Innovation and Creativity Centre (MaGIC) to social enterprises which have been able to raise donations to implement social projects to address issues faced by the target community through innovative methods,” he said.
Muhyiddin said generally COVID-19 has changed the way the economy operates.
“In order to continue to make our country a major investment destination, it is important that we tell the world that our economy remains competitive and open to business.
“Malaysia is currently ranked 12th in the world in the ease of doing business and third in Asia Pacific. In this regard, PENJANA is underlining several investment packages and programmes, tax exemption incentives and inclusive financing facilities,” he said.