Wage subsidies first line of defence to help SMEs, keep unemployment low
By:Bernama
Date:
Wage subsidies

KUALA LUMPUR: Keeping unemployment low by helping small and medium enterprises (SMEs) retain their workers through wage subsidies and loan moratoriums during the pandemic is the first line of defence in helping households, Asia Analytica said.

The research and institutional services said the sector formed the backbone of the economy and generate substantial employment.

It said the government’s wage subsidy programme, aimed at keeping Malaysians employed and preventing retrenchments, has wide-reaching effects for SMEs as it caters for large numbers of up to 500 employees per SME and runs for well over a year.

“The wage subsidy applies to SMEs that have generally suffered at least a 30 per cent decline in income,” it said in a report published by The Edge Malaysia.

It said SMEs received a wage subsidy of RM600 per month for each employee earning below RM4,000 per month for up to 500 employees per SME.

“Note the wage subsidy was as high as RM1,200 per person under the first scheme in Prihatin, and the RM4,000 salary cap was dropped under the National People’s Well-Being and Economic Recovery Package (Pemulih),” it said.

Asia Analytica said it estimated the sector would receive a total of 13 months of wage subsidies during the 21-month period from April 2020 to December 2021 under the six economic packages, namely Prihatin, Penjana, Kita Prihatin, Permai, Pemerkasa Plus and Pemulih.

It said in theory, an SME with 500 employees could enjoy a subsidy of RM300,000 per month for 13 months.

“SMEs in selected, adversely-affected sectors would receive an additional six months of wage subsidies, or a total of 19 months,” it said.

It said given that the strategy was to help companies sustain themselves and keep their workers, the focus was on restructuring their debt repayments so that they have sufficient liquidity and cash flows. – Bernama  

New Sarawak Tribune e-Paper

Related Post

Nusantara to bring huge tourism potential to Indonesia, Malaysia
2 days ago
Carbon credit to be Vietnam’s revenue
3 days ago
Malaysia’s external trade to expand
3 days ago
Bursa Malaysia’s net profit expected to grow
3 days ago
Economist raises concerns over high dependence on SST
3 days ago
Singapore keen on submarine cable project collab
2 weeks ago
AmBank spreads joy in heart-warming CNY short film
2 weeks ago
Farm Fresh Berhad bags another platinum at Putra Brand Awards
3 weeks ago

Promoted Content

Latest News

Labuan engineering team wins RM100k grant for multi-measurement kit innovation
11 mins ago
Malaysia extends condolences to Musharraf's family
18 mins ago
Special committee set up to print, distribute Quran nationwide
26 mins ago
UPUonline applications open tomorrow
33 mins ago
Popular singer Shilla J to perform at SK Sungai Duan festival
48 mins ago

Quicklinks

Subscribe and get the latest news from NewSarawakTribune.com.my

New Sarawak Tribune is a Sarawakian news portal that highlights Sarawak-centric news and other stories of relevance to Sarawak.

Today, New Sarawak Tribune focuses on happenings in Sarawak’s cities, towns and small places no matter how remote these are and events of relevance in other states of Malaysia and other countries.