The Federation of Malaysian Manufacturers (FMM) has expressed hope that the government would consider relaxing some measures in the Prihatin Rakyat Economic Stimulus Package (PRIHATIN).
The federation also hopes that the government would consider some new proposals for urgent consideration to help ease the immediate cash flow and financial constraints of businesses, in particular the small and medium enterprises (SMEs) due to COVID-19 and the Movement Control Order (MCO).
For the RM50 billion Danajamin Nasional Bhd's guarantee scheme, FMM hopes that banks will fully assist affected companies with reasonable interest charges and focus on saving the financially distressed companies from folding with easier complied conditions since the government has already provided guarantee and with low interest.
FMM also appeals for Bank Negara Malaysia's (BNM) further intervention to ensure that there is consistency across all financial institutions in the treatment of interest during the moratorium period.
"FMM is of the view that banks should not compound interest but rather waive or reduce the interest during the moratorium period to further assist companies affected," it said in a statement today.
Prime Minister Tan Sri Muhyiddin Yassin, on March 27, unveiled the PRIHATIN package worth RM250 billion to protect the welfare of the people and support businesses, including SMEs.
Under the RM5 billion Special Relief Facility for SMEs, while it would certainly allow more affected SMEs to tap into the fund, FMM said given the large number of SME establishments in the country, it hopes that the interest could be further reduced to 2.0 per cent and lending conditions be lessened, including the strict collateral requirement.
FMM also suggests that the allocation of RM5.9 billion under the Wage Subsidy Programme should be doubled to RM12 billion as the allocated amount is not sufficient since it is estimated to only cover 3.3 million workers.
"The RM600 wage subsidy introduced should have been extended to all employees regardless of wage level and the subsidy should be automatic without the need for companies to prove reduction in earnings by 50 per cent as all companies would be experiencing a significant reduction in revenue and sales as the result of COVID-19 and the MCO," it said.
FMM also proposes that there should be a complete exemption or a reduction in the employer contribution to the Employees Provident Fund until end of December 2020 instead of the current announced deferment/ restructuring/ rescheduling option of payment.
"The current initiative of deferment would still tie employers down financially as they focus on their respective business revival plans to ensure business viability and continuity and keeping jobs in the next six months to a year," it said.
FMM proposes that the government introduce a special soft loan scheme of RM5 billion with a low 2.0 interest rate for companies to cover the fixed capital payments such as rents and utilities, as well as administrative payments, including salaries during this period.
"The government is strongly urged to introduce the Certificate of Force Majeure similar to the facility instituted by China's authorities to assist exporters that are unable to meet contractual obligations due to delays in resuming manufacturing activities following the implementation of the MCO," it added.
-- BERNAMA
Bernama
Mon Mar 30 2020
FMM also suggests that the allocation of RM5.9 billion under the Wage Subsidy Programme should be doubled to RM12 billion as the allocated amount is not sufficient. - FILEpic
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.
Five important aspects relating to people’s lives in Budget 2025 - PM
The focus is on driving the MADANI Economy, speeding reforms, cutting red tape, raising wages, and tackling the cost of living.
Economic outlook: Govt plans to leverage, expand existing city transit system
The expansion aims to provide a more efficient and reliable public transportation network, reduce congestion, and improve accessibility.
Economic outlook: Budget 2025 to lay foundation for a digital-driven economy
The report said Budget 2025 will entail efforts to position Kuala Lumpur as a top 20 global startup hub by 2030 through the KL20 initiative.
Economic outlook: Corruption and lack of accountability hinder economic progress
Special Cabinet Committee on National governance is established to curb corruption, law reforms to modernise outdate regulations, MoF said.
National Wages Consultative Council will be strengthened
The govt will also incentivise hiring women returning from career breaks, offer job matching and improve care services facilities.
Economic outlook: Ensuring 11 years of compulsory education for all children
Budget 2025 will continue prioritising upskilling and retraining initiatives to equip workers with the latest skill sets necessary.
Consolidated public sector projected to record lower surplus of RM41.7 bil 2024
The MoF said the consolidated general government revenue is estimated to increase slightly to RM384.7 billion in 2024.
PM announces substantial Budget 2025 hastening Malaysia to become Asian economic powerhouse
Datuk Seri Anwar Ibrahim said it would create jobs and also tackle financial leakages to enhance public spending efficiency.