The report also touched on how the government is supporting micro-SMEs (PMKS) entrepreneurs and female entrepreneurs through financing schemes like SPIM and DANANITA.
Malaysia’s Ministry of Finance (MOF) released the 82nd LAKSANA report on 21 January 2022 (Friday), covering the financial assistance provided to those affect by the recent floods, SOCSO's SPS Protection (or SPS Lindung), as well as several job maintenance and generation initiatives such as the wage subsidy programme (PSU).
In this coverage, Human Resources Online will focus on the following:
- SOCSO's SPS Protection;
- SOSCO's PSU, and
- Other available development and financing schemes for SMEs (PKS) and more.
Read below for more details relevant to employers and HR leaders in Malaysia.
As a refresher, SPS Protection (or SPS Lindung) is SOCSO's social security protection scheme to protect the welfare of the self-employed in courier services. To date, the agency has provided interest payments amounting to RM1.3mn on 764 accident cases involving food deliverers nationwide. Other self-employed Malaysians who are looking to be covered under the scheme, which protects those in more than 19 self-employed sectors, can participate at this website.
With RM600mn allocated for the wage subsidy programme (PSU) under Malaysia's Budget 2022, the Government is said to continue the implementation of PSU targeted at tourism operators experiencing declining incomes at least 30% of total sales or revenue in October 2021 until December 2021 compared to any month in 2019 until 2021 before the outbreak of COVID-19. This is the fifth instalment of the programme, and will benefit more than 26,000 employers, and maintain the employment of 330,000 employees.
Applications for PSU 5.0 have been open since 1 January 2022, and will cease on 31 March 2022.
According to the report, employers from sectors and industrial activities that are not listed but still affected by COVID-19 can still submit an online appeal to SOCSO at this website. Further, it was revealed that in total, from PSU 1.0 to 4.0, the Government has channeled a total of RM20.147bn to 357,429 employers through the Wage Subsidy Programme to maintain the employment of 2,951,854 local workers in an effort to reduce the unemployment rate in among Malaysian employees.
As of 7 January 2022, the amount of wage subsidies provided is as follows:
- PSU 1.0 - RM12.956mn to a total of 322,177 employers, and maintained the employment of 2.64mn employees.
- PSU 2.0 - RM1.405bn to a total of 81,080 employers, and maintained the employment of 716,885 employees.
- PSU 3.0 - RM3.612bn to employers, and maintained the employment of 1,521,767 employees.
- PSU 4.0 - RM2.174bn to a total of 142,908 employers, and maintained the employment of 1,718,730 employees.
Other available development and financing schemes
In an effort to increase access to financing to the business sector, especially micro-SMEs (PMKS) entrepreneurs, and the informal sector, the report cited the Government's financing scheme for informal and micro sectors (Skim Pembiayaan Informal dan Mikro, or SPIM) up to RM10,000 at a rate of 0%, and a moratorium for 12 months.
Entrepreneurs who run small businesses, home businesses, online businesses, hawker stalls, as well as those who offer delivery services are advised to apply at this website.
Beyond that, the Government also offers a financing scheme for female entrepreneurs under the women’s special business financing scheme (Skim Pembiayaan Perniagaan Khas Wanita, or DANANITA) programme, which is worth RM230mn to help those affected by the COVID-19 pandemic, and to increase their business capacity.
Through DANANITA, it provides financing for working capital, as well as the purchase of machinery and equipment up to RM150,000 at a rate of 3.5%. Interested entrepreneurs can apply at this website.