C VID MORATORIUM UPDATE - Malaysia - November 2020 - Rubix
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C VID MORATORIUM UPDATE - Malaysia Copyright © 2020 Rubix Data Sciences Pvt.Ltd. All rights reserved. November 2020
S. No. Country Malaysia
Measures Implemented -
1 Extension of Time for Corporate filing
Company Filings
The Companies Commission of Malaysia (Suruhanjaya Syarikat
Malaysia (SSM)) announced initiatives to ease the burden of the
corporate sector during the Covid-19 pandemic. They will grant a
moratorium of 30 days from the end of the Movement Control Order
(MCO) to lodge all affected statutory documents with SSM and also
give an extension of time (EOT) of three months for companies to
Action taken as part lodge their financial statements to SSM.
of the Measure
On October 22, 2020 the SSM has granted an extension of time
(EOT) of 90 days for companies to hold its Annual General Meeting
(AGM), to circulate and to lodge financial statement to SSM will be
extended. Companies can lodge its financial statements and reports
with the Registrar without any late lodgement fees provided it is
lodged during the period from 22 October 2020 to 31 December 2020.
Targeted audience
Corporates, Businesses
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - Start Date: April 10, 2020
Start Date / End date End Date: December 31, 2020
1
https://www.klbar.org.my/extension-of-time-eot-for-
circulation-and-lodgement-of-financial-statements-and-
holding-of-annual-general-meetings/
Source / Link
https://www.mia.org.my/v2/highlights/content_
display.aspx?ID=N15935713M
2Measures Implemented -
2 Moratorium Extension and Loan Restructuring
Payment / Loan Repayments
The Malaysian government implemented a six-month repayment
moratorium to help the finances of Malaysian households and
businesses in April 2020. The moratorium was to have ended on
Sept 30 but now has been extended up to December 31, 2020.
Those who have lost their jobs or are unable to find jobs will get
further extensions to defer repaying their banks loans. And those
who had salary cuts due to the coronavirus pandemic will be
allowed to repay their bank loans in smaller amounts, depending
Action taken as part on the severity of the pay cuts.
of the Measure
The Banking institutions will also facilitate requests by corporations
to defer or restructure their loans/financing repayments in a way that
will enable viable corporations to preserve jobs and swiftly resume
economic activities when conditions improve. The Bank has provided
appropriate time-bound flexibilities for banking institutions to report
deferred/restructured facilities in the Central Credit Reference
Information System (CCRIS), taking into account the temporary
nature of disruptions faced by borrowers/customers. Applications for
repayment assistance at any time before 30 June 2021 will also not
appear on a borrower’s CCRIS records.
Targeted audience
Consumers, Employees, Businesses and Corporates
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - Start Date: April 1, 2020
Start Date / End date End Date: December 31, 2020
3https://www.bnm.gov.my/index.php?ch=en_press&pg=en_
press&ac=5125&lang=en
https://www.straitstimes.com/asia/se-asia/malaysia-
Source / Link announces-extension-to-defer-loan-payments-to-banks
https://www.bnm.gov.my/index.php?ch=en_press&pg=en_
press&ac=5018&lang=en"
4Measures Implemented -
3 Corporate Rescue Mechanism
Insolvency
The government has implemented several mechanisms under the
Corporate Rescue Mechanism under Companies Act 2016 (CA)
which will provide temporary shelter while you seek to restructure
your existing debt obligations, including refinancing or rescheduling
of credit facilities and securities such as Corporate Voluntary
Arrangement, Judicial Management and Scheme of Arrangement
Action taken as part under CA.
of the Measure
The Government has also set up the Corporate Debt Restructuring
Committee (CDRC) that acts as a mediator for creditors which have
borrowings from banks. The CDRC carries with it the authority of the
government as well as the Bank Negara to assist borrowers and
bankers in finding an amicable settlement between all parties
concerned.
Targeted audience
Businesses
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - Start Date: April 23, 2020
Start Date / End date End Date: December 31, 2020
https://www.crowe.com/my/insights/corporate-rescue-schemes
Source / Link https://www.bakermckenzie.com/en/insight/
publications/2020/03/survival-of-companies-impacted-by-covid19
5Measures Implemented -
4 Tax Reliefs
Fiscal Stimulus
The government has rolled out economic stimulus packages and
recovery plans worth RM305 billion or 20% of the GDP.
Malaysia announced a series of tax incentives as part of a
post-Covid-19 stimulus package, including a 10-year 0% tax rate
on certain new investments from foreign manufacturers.
The package includes a 15% tax rate for new investments in the
Action taken as part
manufacturing sector for 15 years for companies with fixed
of the Measure assets exceeding RM500 million ($117 million) and above.
The package also includes a 100% tax exemption on the sale
of domestic passenger cars, and 50 percent for imported passenger
cars from June 15 to Dec. 31 2020. The government will withdraw
its tourism tax from July 1 to June 30 2021. It will also extend
a service tax exemption for accommodation companies from
September 1 to June 30, 2021.
Targeted audience
Businesses, Consumers
(e.g. Consumers/ Business/other)
Permanence of Measures Temporary
(e.g. Temporary or Permanent) - Start Date: February 27, 2020
Start Date / End date End Date: December 31, 2022
https://www.theedgemarkets.com/article/covid19-crisis-
warrants-exit-clause-fiscal-policy-says-zafrul
Source / Link
https://news.bloombergtax.com/daily-tax-report-international/
malaysia-proposes-tax-incentives-in-covid-19-stimulus-package
6Measures Implemented -
5 Economic Stimulus Packages - PRIHATIN
Economic Stimulus
The Malaysian Government has unveiled Economic Stimulus
Package, PRIHATIN package, Additional PRIHATIN Package,
National Economic Recovery Plan and Kita PTIHATIN Package
worth RM20billion, RM230billion, RM10 billion,R M35billion and
RM10billion respectively to weather the impact of COVID-19.
These additional package includes the RM7 billion Bantuan Prihatin
Nasional (BPN) 2.0, the Wage Subsidy Programme 2.0 worth RM2.4
Action taken as part billion and Prihatin Special Grant (GKP) worth RM600 million.
of the Measure
Special grant of RM3,000 is given to each qualifying micro SME
and the micro SME must register with the Malaysian Inland
Revenue Board.
Easy financing scheme is extended to TEKUN Nasional Scheme
with a fund of RM200 million at interest rate of 0%. The maximum
loan amount is capped at RM10,000 for each micro company.
Targeted audience
Consumers, Local workers, Businesses
(e.g. Consumers/ Business/other)
Permanence of Measures
Permanent
(e.g. Temporary or Permanent) - Start Date: September 23, 2020
Start Date / End date
https://www.reuters.com/article/malaysia-politics-idUSL3N2GM14X
https://home.kpmg/xx/en/home/insights/2020/04/malaysia-
Source / Link government-and-institution-measures-in-response-to-covid.html
https://www.crowe.com/my/news/malaysia-kita-prihatin-economic-
stimulus-package-2020
7Measures Implemented -
6 Lower OPR, SRR, etc
Monetary Stimulus
The Monetary Policy Committee (MPC) of Bank Negara Malaysia has
lowered the Overnight Policy Rate (OPR) at 1.75 percent due to market
disruptions and financial market volatility. The Statutory Reserve
Requirement (SRR) Ratio has also been lowered by 100 basis points to 2
percent effective March 20. The Securities Commission Malaysia (SC)
and Bursa Malaysia suspended short-selling which has been extended
through end-2020. SC also waived annual licensing fees for capital
market licensed entities. They have also provided regulatory relief
Action taken as part measures for public listed companies. The BNM has relaunched the
of the Measure Home Ownership Campaign in June 2020 with stamp duty exemptions
for properties between RM300,000 to RM 2.5 million until May 31, 2021
to support the real estate sector.
Banks have also committed to provide repayment flexibility
(e.g. allowing temporary interest-only payments and lengthening
the repayment period) to other individuals and all SME borrowers
affected by COVID-19.
Targeted audience
Businesses
(e.g. Consumers/ Business/other)
Permanence of Measures
Temporary
(e.g. Temporary or Permanent) - Start Date: January, 2020
Start Date / End date
https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-
COVID-19#M
Source / Link https://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=51
10#:~:text=The%20cumulative%20125%20basis%20points,to%20be%20
appropriate%20and%20accommodative.
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