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FMM PRESS STATEMENT: Industry Welcomes the Initiatives Announced under the PERMAI Assistance Package 2021 To Support Business Continuity During the MCO 2.0 Period

Kuala Lumpur, January 18, 2021 – The Federation of Malaysian Manufacturers (FMM) thanks the Government for taking heed of its call to continue with the relief assistance especially for industries not allowed to operate during the Movement Control Order (MCO) 2.0 period which would certainly impact business continuity and sustainability and the livelihood of the rakyat.

In particular, the industry welcomes the following initiatives which would have a direct impact on the business sector:
  • Extension of the wage subsidy under the Wage Subsidy Programme 3.0 which has been enhanced to cover 500 employees/company for a one month period. However, FMM would have hoped for this extension to be for a three month period as there would be cascading impact on business operations even after operations have resumed after the MCO;
  • Relaxation of the conditions to qualify for the Employment Insurance System Programme (SIP) PRIHATIN for those who suffer loss of employment
  • Exemption of the HRDF levy contribution for companies that are unable to operate during the MCP and CMCO periods
  • Extension of the targeted loan moratorium and restructuring of loan repayment
  • Accelerating the implementation of the Microcredit Schemes to assist with the cash flow of micro-enterprises and SMEs and the SME and Micro-SME e-Commerce Campaign and Shop Malaysia Online campaign to support and boost online businesses
  • Enhanced features of the Danajamin PRIHATIN Guarantee Scheme (SJPD) with an increase in the maximum financing to RM1billion, expanding the scope of financing to over working capital with a guaranteed period of up to 10 years and allowing foreign-owned companies operating in Malaysia to obtain the SJPD
  • Expansion and extension of the special tax deduction to companies that provides reduction of rental on business premises to also cover non-SMEs and extended until June 30, 2021
  • Extension of the effective period of the Temporary Measures for Reducing the Impact of COVID-19 Act 2020 on the inability to perform contractual obligations to 31st March 2021. The COVID-19 Act however is currently limited to 9 categories of contract which exclude manufacturing and its related supplies. We request for the Act to be expanded to provide provision for relief for manufacturing and other manufacturing related services such as trading or distributorship and logistics given the contraction in manufacturing activities due to the harsh impact of Covid-19 pandemic and the recent re-imposition of MCO 2.0. In addition, as the current Act is very specific in providing temporary relief for contractual obligations faced during this pandemic period, FMM has proposed for a Disaster Management Act to be enacted which will account for other disasters including devastating floods or possible future outbreaks and not specific to COVID-19 only.

Tan Sri Dato’ Soh Thian Lai
President, Federation of Malaysian Manufacturers

FMM Advocates Transparency, Integrity and No Corruption

About FMM
The Federation of Malaysian Manufacturers (FMM) has been the voice of the Malaysian manufacturing sector since 1968. Representing over 10,000 member companies (3,000 direct and 7,000 indirect) from the manufacturing supply chain, FMM is actively engaged with government and its key agencies at Federal, State and local levels. FMM is also well-linked with international organisations, Malaysian businesses and civil society. Apart from benefitting from FMM’s advocacy, FMM members enjoy value-add services, including training, business networking and trade opportunities as well as regular information updates.

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