Since our government has announced a new stimulus package for SMEs on 6th April 2020, our researchers have updated the previous infographic (the first one) of the comparison between Malaysia and Singapore stimulus package based on initiatives catered explicitly for SMEs.
As we all know, in 2018 alone, SMEs in Malaysia contributed about a quarter (38.3%) to Malaysia GDP and more than half (66.2%) to total employment in Malaysia. Hence, it is more than anything for the government to help these SMEs during this time of crisis like right now.
Our researchers have categorized the type of assistance into 5 categories:
1. Loans and Financing: An initiative provided by the government or the central bank to allow SMEs to borrow money with a low-interest rate and high guarantees coverage.
2. Operating Cash Flow: An initiative provided by the government or the central bank to allow SMEs to defer their loan repayments, discounting their rents and bills, or reducing their monthly commitments.
3. Tax Relief: An initiative provided by the government to exempt, defer, or reduce their tax payments.
4. Upskilling: An initiative provided by the government to support, enhance, or train the SMEs to increase their capacity and productivity.
5. Wage Subsidy: An initiative provided by the government to fully or partially subsidise the salaries paid to the workers.
Disclaimer: These percentages are based on the total number of initiatives catered explicitly for SMEs (Malaysia has 32 specific based on the latest stimulus packages announced whereas Singapore has 40).