Special Message from the Prime Minister of Malaysia (5/06/2020)

Special Message from the Prime Minister of Malaysia (5/06/2020)

Prime Minister Tan Sri Muhyiddin Yassin has unveiled a host of measures in the government’s Short-Term Economic Recovery Plan aimed at alleviating the worst effects of the Covid-19 pandemic.

Below are the key takeaways:

  • Nearly RM9bil allocated by government to address rising unemployment, it will benefit over 3 million workers nationwide.
  • Wage Subsidy Programme which allocates RM600 per worker to be extended for another three months.
  • Employers who are not allowed to operate during the conditional movement control order (MCO), are allowed to apply for the wage subsidy programme.
  • The government has come up with “Penjana” (Pelan Jana Semula Ekonomi Negara to empower people, propel businesses and stimulate the economy. It has 40 initiatives worth RM35bil, of which RM10bil is a direct fiscal injection by the government.
  • An employment subsidy programme worth RM1.5bil. Companies will get financial subsidies for giving jobs to the unemployed. An expected 300,000 people will benefit.
  • There are two incentives given to companies, whereby those that employ unemployed Malaysians under 40 will get RM800 per worker and firms that employ those 40 years and above or persons with disabilities (OKU) will get RM1,000. The incentives will be given for six months.
  • Government to introduce My30 unlimited pass for public transport users. Commuters can now pay RM30 a month for unlimited rides. It is open to all nationalities, beginning June 15 until the end of 2020.
  • Grants will be given to daycare (taska) operators for implementing and adhering to the SOPs (standard operating procedures) set by the government.
  • E-vouchers will be available for those who order child-minders’ services online.
  • Up to a RM3,000 incentive of individual income tax for fees paid by parents to taska and tadika (kindergartens).
  • Campaign Shop Malaysia Online to encourage trade via e-commerce platforms using promo codes and discount vouchers. Government allocating RM70mil, which would be matched by e-commerce platforms.
  • Banking sector allocates RM2bil to assists SMEs, where applications begin mid-June, with a threshold of RM500,000 per SME.
  • RM400mil to fund Penjana microcredit by Tekun and Bank Simpanan Nasional with RM50mil allocated especially for female entrepreneurs.

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