KUALA LUMPUR, April 6 — Landlords who waive or reduce rent for small and medium enterprises (SMEs) by at least 30 per cent will receive the equivalent in tax deductions, the prime minister announced today as part of an additional RM10 billion package to support businesses.
Prime Minister Tan Sri Muhyiddin Yassin expressed hope that the measure would encourage property owners to emulate the government’s move to waive rent for struggling businesses at premises owned directly or via state-linked companies.
“In the spirit of shared responsibility, I would like to urge private companies to provide similar facilities by reducing rent at their premises at least for the duration of the MCO and the following three months,” the prime minister said.
“Property or commercial space owners who waive or reduce rent to SMEs will enjoy additional tax deductions equivalent to the amount for the month of April until June, 2020.”
The extended package Muhyiddin unveiled today followed strong criticism from business operators who felt left out by the RM250 billion Prihatin stimulus package announced last week.
From the total, RM100 billion was allocated for SMEs, although detractors noted a large chunk of it were just loans and guarantees.
The SME Association has said nearly all its members face cash flow problems and badly need direct assistance to avert closure.
Previously the government waived rent at all GLC-owned premises.