Initiatives by SSM To Help Reduce the Impact of Business Communities Affected by Covid-19 Pandemic
The ripple effect of this worldwide shutdown has had an adverse impact on the Malaysian economy resulting in low revenue for almost all business sectors. Considering the current situation and to build survival strategies for businesses to cope with the pandemic, the Malaysian government has taken several initiatives. Adding to the effort, SSM (Suruhanjaya Syarikat Malaysia) has also taken steps to reduce the burden on businesses and corporate sectors affected by the Covid-19 pandemic.
List of the Initiatives Taken by the SSM to Benefit your Business
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Introduction of the 30-day Moratorium Period
According to the new 30-days moratorium period, all statutory documents required to be filed under the Companies Act 2016 and as well as the Limited Liability Sharing Act 2012 can now be submitted after the expiry of the CPP. All late fees, as well as penalties, will be waived off during this period.
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Extension of 90 Days for Distribution and Submission of Financial Statements to SSM
The SSM has allowed a 90 days grace period for the submission of financial statements and has also waived off the payment of RM100 fee to all affected companies during this period.
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Extension to the Period of Compliance with Section 241 of the Companies Act 2016
An extension has been given in the period of compliance with Section 241 concerned with the CPE (Continuous Professional Earning) points to company secretaries until 31st December 2020. This is subject to certain terms and conditions but is an essential initiative from the SSM.
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Raised Threshold for Indebtedness Under the Seskyen 466 Companies Act 2016
The SSM realizes the need for companies to regulate and strengthen their financial position. To assist them during these unprecedented times, the SSM has raised the threshold for indebtedness from RM10,000 to RM50,000 effective from 23rd April 2020 to 31st December 2020.
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Extension in the Duration of the ‘Compliance Campaign 2020 of the Companies Act 2016’
An extension has been provided for the duration of the Compliance Campaign wherein the SSM will grant a maximum 90% of compounding rate to companies that:-
- Have updated their annual returns and financial statements.
- Are dormant or inactive and have applied for revocation under section 550, US 2016.
- Have written feedback on the notice under section 7 (11) (b) of the US 1965 from the company secretary.
Apart from these initiatives, the SSM is also in the process of drafting an Amendment Bill (2020) in order to introduce provisions to help businesses with financial problems on the whole and not just in case of the pandemics. To offer their support, the SSM has proposed several measures that can and will be beneficial to the corporate sector, especially to the COVID Bill 2019 and the subsidiary legislation. These measures are being enforced, keeping in mind the 7,40,000 business owners whose business registration expires during the CPP period. The SSM has granted an extension to such organizations that can now complete their business registration renewal process till 31st December 2020 instead of 17th March 2020.
For more information regarding the government initiatives and how it may impact your business, please visit the SSM Website
In these trying times, it is essential to stand united and help one another in every way we can. And, with a supportive and expert partner like DataTracks by your side, you can leverage these initiatives offered by the SSM. Set up a call with one of the experts at +60-392126125 or write to enquiry@datatracks.my.