SSM to offer 80% discount on compounds for corporations

The discount will be reduced to 70% for payments made in October, 60% in November and 50% in December

By AFIQ AZIZ / Pic By MUHD AMIN NAHARUL

The Companies Commission of Malaysia (SSM) will offer up to 80% discount for compounds imposed on registered corporations from Sept 1, 2018.

Domestic Trade and Consumer Affairs Minister Datuk Saifuddin Nasution Ismail (picture) said the move aims to encourage and facilitate companies operating in the country to settle their outstanding compounds.

“This incentive is made in conjunction with SSM’s “Comply with the Company’s Act 2016, Show Compassion, Love Your Company” campaign, which aims to make the public aware of the basic requirements as well as serve as a reminder for them to adhere to the act,” he told reporters after launching the Companies Commission of Malaysia National Conference 2018 in Subang yesterday.

The 80% discounts serves as an incentive for business owners to settle their compounds this year.

The discount percentage will go down to 70% for payments made in October, 60% in November and 50% in December.

According to SSM’s data, there are about 1.27 million companies registered under the statutory body but only about 523,000 companies are currently active.

Last year, about 92% or 399,681 companies complied with the act which requires businesses to submit its annual returns as well as its audited financial statements while about 44,907 firms failed to do so.

As of July 31, SSM has around 86,450 summonses worth RM359.75 million.

Of the total, 31,889 companies were summoned for failing to file in their annual return report.

Saifuddin Nasution said in order to mitigate this, an online lodgement platform known as Malaysian Business Reporting System (MBRS) will be launched by the third quarter (3Q) this year to help ease and expedite the annual return report submission.

“The system is 99% ready and will be used by both local and multinational corporations,” he said.

He hopes that all company secretary firms support the ministry’s latest initiative that will in the long run benefit all parties in the business ecosystem.

Apart from that, Saifuddin Nasution said, a new law framework of corporate rescue mechanism which aims to aid financially ill businesses undergoing restructuring processes to restore their operation, will also be introduced.

“The mechanism will facilitate both corporations and creditors by creating a more conducive atmosphere, as well as ensuring smooth solutions to any disputes that should arise. Indirectly, it can help corporations enhance its business sustainability in Malaysia,” he said.