Payment of the GKP 3.0 will begin in June 2021, and is expected to benefit close to 1.2mn micro-SMEs in Malaysia, the Ministry of Finance (MOF) announced on Monday (29 March).
Payment of the Special Prihatin Grant 3.0 (Geran Khas Prihatin or GKP 3.0) will begin in June 2021, and is expected to benefit close to 1.2mn micro-SMEs in Malaysia, the Ministry of Finance (MOF) announced on Monday (29 March).
It stated: "Under the Strategic Programme for Empowering the People and the Economy (PEMERKASA), the Government remains committed to supporting the business sector, especially local micro Small and Medium Enterprises (SMEs) through the Special Prihatin Grant (GKP) 3.0. It aims to ease the financial burden of micro-SMEs so that they can revitalise their business in this still challenging period."
The GKP 3.0 will involve an additional allocation of RM1.2bn. Taking into account previous payments, the total GKP financial assistance given out will amount to RM4.78bn.
As part of GKP 3.0 each eligible micro-SME will receive a one-off GKP 3.0 assistance of RM1,000, and existing recipients of GKP 1.0 and GKP 2.0 will receive an additional payment of RM1,000 without having to re-apply. For micro-SMEs that have never received GKP before, the GKP 3.0 application will be opened online through the GKP Portal, from 1 to 15 April 2021 (for 15 days) .
Micro-SMEs that have not passed and have not received the GKP before will still have the opportunity to submit an application for review.
The MOF also shared that micro-SMEs that are eligible for GKP 3.0 are the businesses that meet the micro-SME criteria and are also registered with the Companies Commission of Malaysia (SSM), local authorities, or the Inland Revenue Board of Malaysia (IRB) as at 28 February 2021.
In line with this, the MOF has released a set of FAQs regarding GKP 3.0, for employers to note, as shared below.
1. What is GKP 3.0?
GKP 3.0 is financial assistance provided to qualified SMEs as well as additional financial assistance to existing recipients of GKP 1.0 and GKP 2.0, on a one-off basis amounting to RM1,000, to alleviate the financial burden of businesses while increasing production and service productivity.
2. Who is eligible to receive, and what is the value of GKP 3.0 assistance?
Eligibility and value of GKP 3.0 assistance are as follows:
3. Who is eligible for the new GKP 3.0 application?
Those who apply for GKP 3.0 must meet the following eligibility requirements:
- Not a previous recipient of GKP 1.0 and GKP 2.0;
- Applicants must be Malaysian citizens;
- Applicants who run SMEs as follows:
- Total annual sales or turnover less than RM300,000; and
- The number of full-time employees does not exceed four people, excluding owners;
- Registered with the following agencies;
- Inland Revenue Board of Malaysia (IRBM) before or on 28 February 2021; or
- A local authority or Companies Commission of Malaysia (SSM) before or on 28 February 2021;
- The firm is still actively conducting its business at the time the application is made.
4. What is the GKP 3.0 application method?
The new GKP 3.0 application can be made online only through the GKP Portal. New applications made manually at LHDNM branches will not be accepted.
5. When does the new GKP 3.0 application date start?
The new GKP 3.0 application period will be open from April 1 to April 15, 2021 (15 days).
6. When will the results of the application be known?
Applicants can check the results of the application from early June 2021, on the official portal. This is subject to change from time to time.
7. When will the GKP 3.0 payment date be made?
The payment date of GKP 3.0 will be informed from time to time.
8. How is the GKP 3.0 payment method implemented?
Payment will be credited to the applicant's personal bank account registered on the new GKP 3.0 application or the existing recipient of GKP 1.0 and GKP 2.0. The bank account stated must be active.
9. What will happen if I fail to submit a savings/current bank account for GKP 3.0 payment?
The payment process will fail and the payment will be canceled as the GKP payment is only credited to recipients who have an active savings / current bank account.
10. Will the GKP 3.0 eligibility review be done by any Government Agency?
Yes. The Government will cross-check with several Government agencies to ensure the authenticity of the information submitted by the applicant.
11. I just registered and am running a business in 2021 (before 28 February 2021), do I need to report sales for 2020?
If the business was registered in 2021 (before 28 February 2021), the total sales to be reported are sales received in 2021 only.
12. I have registered and have been running a business before or in 2020. Therefore, when should I report sales on the GKP 3.0 application?
If the business was registered and operating before or in 2020, the total sales to be reported are the total sales for 2020 and 2021.
13. I have passed GKP 3.0 for new applications, am I eligible to receive additional GKP under the PERMAI Package?
No. The additional GKP is a one-off additional financial assistance provided by the Government to micro-SMEs that have previously received the GKP 1.0 and GKP 2.0 assistance.
14. I have received GKP payments before and would like to decline GKP assistance. How do I return the GKP payment received?
The actions to be taken are as follows:
- Please submit a letter to the Ministry of Finance Malaysia stating your full name, Mykad number and reason for return;
- Attach a bank draft/check in the name of the Accountant General of Malaysia (according to the return amount); and
- Letters and bank drafts/checks must be submitted to the Ministry of Finance Malaysia at the following address: National Budget Office Ministry of Finance Malaysia Precinct 2, 62592 Putrajaya
15. What should I do if I have any questions about the status of the GKP 3.0 application?
For any inquiries on the status of the GKP 3.0 application, you can contact the Hasil Care Line at 03-8911 1000 / 603-8911 1100 (Overseas).
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