Consider Malaysia, Singapore, and Indonesia AGENDA COVID-19 and - - PowerPoint PPT Presentation

COVID-19:

Employment Issues to Consider

15 April 2020

Malaysia, Singapore, and Indonesia

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AGENDA

COVID-19 and Employment-Related Considerations Emergency measures taken in Malaysia, Singapore and Indonesia to combat COVID-19 How do employers and businesses deal with the economic impact of measures taken? Governmental assistance to help employers and businesses

Yong Hon Cheong

Partner Zaid Ibrahim & Co. (a member of ZICO Law) hon.cheong.yong@zicolaw.com +603 20879963

MALAYSIA

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Governmental response to COVID-19 | Malaysia

• Movement Control Order (from 18 March,

extended to 28 April 2020)

• Restriction of travel inbound and outbound and

also within the country

• Closure of non-essential business premises,

schools and higher educational institutions

• Prohibition on mass gatherings inclusive of

religious gatherings

• Restriction on hours for food vendors and

deliveries

• Enhanced Movement Control Order (certain

areas)

• Prohibition on occupants leaving their

residences and entry by non-residents into affected areas.

EMERGENCY MEASURES

• Wage subsidy for 3 months for employees

earning RM4,000 or less per month: (i) For companies with 75 employees and below – RM1,200 per month per employee (ii) For companies with 76 to 200 employees – RM800 per month per employee (iii) For companies with more than 200 employees, RM600 per month per employee up to a maximum of 200

• Condition is that employees must be retained

for 6 months under this arrangement

• Employee retention program – RM600 per

month (for 3 months) for employees placed on no pay leave

GOVERNMENTAL ASSISTANCE

What governmental assistance has been extended to help struggling employers and businesses to ensure business continuity and protect jobs? What measures have been taken to combat COVID-19?

Heng Jun Meng

Director ZICO Insights Law LLC jun.meng.heng@zicolaw.com +65 6908 1294

SINGAPORE

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• Circuit breaker, enhanced safe-distancing

measures (7 April – 4 May 2020)

• Closure of workplaces, schools, entertainment

venues ≠ essential services

• Compulsory use of masks in supermarkets,

malls etc.

• Active enforcement – fines for first time
• ffenders, revocation of work passes
• No entry or transit for short term visitors
• Enhanced stay-home notice for arrivals

EMERGENCY MEASURES

• Temporary relief from certain contractual
• bligations. Examples:
• Commercial + industrial property leases
• Event & tourism-related contracts
• Certain secured loan facilities
• Wage subsidy for 25% of first SGD 4,600 for

local employees – 9 months

• Increased risk share of loans from 80% to 90%
• For April:

GOVERNMENTAL ASSISTANCE

What governmental assistance has been extended to help struggling employers and businesses to ensure business continuity and protect jobs? What measures have been taken to combat COVID-19?

Wage subsidy for 75% of first SGD 4,600 for all local employees Waiver of monthly foreign worker levy

Governmental response to COVID-19 | Singapore

Agnesya Munita Narang

Partner Roosdiono & Partners (a member of ZICO Law) agnesya.narang@zicolaw.com +6221 2978 3888

INDONESIA

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• Declaration of National Disaster on 13 April

2020

• Countermeasures such as large-scale social

distancing policy to prevent the spread within a province or city upon the request of the regional government or provincial government

• Temporary export ban on antiseptics, masks,

masks raw material, and personal protective equipment to meet domestic demand

• Temporary restriction on foreign nationals

entering the country

EMERGENCY MEASURES

• Ministry of Manpower issued circular

encouraging every company, in the interests of business survival during the outbreak, to negotiate with its employees on adjustment of salary and mechanism of payment

• Tax holiday for income tax payments for

employees; tax exemption for deductible income tax related to import of goods or raw materials; adjustment for tax installment of monthly income tax. Applicable for several business sectors (e.g. non-woven, pulp and cement industries)

• Financial Services Authority issued regulation
• n debt restructuring for debtors affected by

COVID-19, with a maximum limit of Rp10 billion.

GOVERNMENTAL ASSISTANCE

What governmental assistance has been extended to help struggling employers and businesses to ensure business continuity and protect jobs? What measures have been taken to combat COVID-19?

Governmental response to COVID-19 | Indonesia

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Q&A session

How do employers deal with the economic impact of governmental measures taken?

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