Prime Minister Announces Economic Stimulus Package – 27 March 2020

Prime Minister Tan Sri Muhyiddin Yassin unveiled an economic stimulus package known as ‘package prihatin’ or caring package valued at RM250bil that will benefit all Malaysians.

From the amount, RM128bil to be used to protect the welfare of the people, RM100bil to support businesses including small and medium enterprises.

Below are the highlights (translations and key highlights taken from The Star):

  • RM500 million to Ministry of Health Malaysia (MOH).
  • An additional RM1 billion allocated for MOH for purchases of equipment and services to combat COVID-19, including obtaining medical specialist services from private health services.
  • To support MOH’s efforts to run more COVID-19 tests, the insurance and takaful industry will created a special fund of RM8 million to finance the cost of screening tests worth up to RM300 each policyholder and medical takaful certificate as directed by MOH for testing in a private hospital or private laboratory.
  • Insurance and takaful companies will offer a suspension of premium payments or contribution for three months for contributors’ income that’s been affected by the outbreak.
  • The Government will increase the special allowance for doctors, nurses and other medical personnel involved directly in the management and containment of this outbreak from RM400 to RM600 per month from April 1, 2020 until the outbreak is over.
  • The Government agrees to extend the special allowance of RM200 a month to members of the military, police, customs, immigration, members of the Armed Forces Civil Defense and RELA members involved directly in execution of the Movement Control Order.
  • An allocation of RM10 billion for private workers, FELDA workers, farmers, fishermen, small traders and those that belongs to the M40 group and below.
  • An allocation of RM270 million for higher education students one-off RM200 per person to be paid in May 2020.
  • RM1,600 in aid to households earning below RM4,000, with RM1,000 paid in April and RM600 in May.
  • Free Internet from April onwards until the end of MCO.
  • Government together with TNB will add an allocation of RM530mil for discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from the April bill.
  • Exemption of rental payment for PPR and public housing for six months.
  • Govt to give one off payment of RM500 to some 120,000 e-hailing drivers beginning April 1st.
  • Govt and BNM will set additional allocation of RM4.5bil for SME and micro entrepreneurs which will comprise of five initiatives.
  • One-off RM500 for 120,000 e-hailing drivers nationwide with an allocation of RM60mil. This is in addition to the RM600 one-off aid announced for taxi drivers that was announced in the previous stimulus package.
  • Govt will pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies.
  • Govt will introduce a wage subsidy of RM600 a month for three months for employers with a 50% drop in business since Jan 1, for workers with a salary of below RM4,000.
  • Govt will continue all projects allocated in Budget 2020, including ECRL, MRT2 and the National Fiberisation and Connectivity Plan (NFCP) in line with its focus to ensure sustainable economic development.
  • Human Resource Development Fund (HRDF) levy exempted for all sectors for six months starting April 2020.
  • Federal government premises such as school canteens, nurseries, cafeteria and convenience stores exempted from rent for six months.
  • Govt pensioners to receive RM500 one-off cash aid.

View Article from The Star here: RM 250 billion Economic Stimulus Package

Read the Full Speech (in BM) here: PRIHATIN_YABPM_(27/03/2020)