MORE funds for petty traders and hawkers to get into e-commerce and tax breaks for firms relocating to Malaysia were among highlights in Putrajaya’s latest stimulus package aimed at helping businesses.

Sectors that have almost been wiped out by the pandemic such as tourism and the creative industry have also been given extra help in the RM35 billion package.

The short-term economic rescue package, called “Penjana”, was announced by Prime Minister Muhyiddin Yassin today.

The package is aimed at helping businesses weather the loss in revenue and demand after efforts to contain the pandemic resulted in an almost total shutdown of the economy for eight weeks.

“After the economy was reopened, the government has received feedback from businesses about the loss in demand from customers and their difficulty in using technology to do online sales,” said Muhyiddin in a special televised address today.

A RM140 million matching grant will be given to the Multimedia Development Corporation (MDEC) to run training courses and sales assistance for micro-entrepreneurs to transition to e-commerce.

To boost the use of e-commerce in Malaysia by consumers, RM70 million in discounts and vouchers will be made available in a public-private campaign called “Shop Malaysia Online”.

In addition, a RM700 million grant and loans for mid-tier companies to adopt digital technologies will be continued.

Other grants and aid for businesses include:

• RM2 billion for SMEs in sectors deemed essential services.
• RM400 million for micro-businesses under the TEKUN agency.
• A total of RM500 million for bumiputera businesses under Perbadanan Usahawan Nasional Berhad and MARA.
• Loans for class G2 and G3 contractors.
• Tax relief for companies that had to buy personal protective gear (PPE) or tests for employees.

Tourism players will be eligible for RM1 billion in loans, while no taxes will be imposed on tourism-related activities and hotel stays starting from July 2020.

For the creative industry, RM225 million in programmes and financing will be allocated to MyCreative Ventures, MDEC and other private companies.

About RM350 billion will be allocated to entrepreneurs involved in food production, while those involved in the palm oil industry will get a 100% waiver on export duties.

Meanwhile, foreign firms that relocate their manufacturing operations to Malaysia between July this year to December 2021 will be eligible for 100% tax allowances for five years. – June 5, 2020.