MALAYSIA'S RM250 BILLION ECONOMIC STIMULUS PACKAGE AMIDST COVID-19

27 MARCH 2020 - MALAYSIA’S STIMULUS PACKAGE UPDATE

Prime Minister Tan Sri Muhyiddin Yassin announced a more comprehensive people-centric economic stimulus package in facing COVID-19 pandemic, valued at RM250 billion to be allocated as follows:

• RM128 billion channelled towards citizen welfare

• RM100 billion to support businesses including SMEs (small and medium enterprises)

• RM2 billion to strengthen the economy

• RM20 billion as was announced previously

The following is a summary of the economic stimulus package:

• Allocation of RM500 million to ramp up the capability and resources of the Health Ministry

• Additional special allowance of RM200 a month for police, immigration and customs departments

• RM1600 one-off financial aid to households with incomes less than RM4,000, of which RM1000 to be paid in April 2020 and RM600 in May 2020

• RM200 one-off financial aid to students of higher education institutions who are affected

• Free Internet from April 2020 onwards until the end of the Movement Control Order (“MCO”)

• Discounts on electricity bills between 15% and 50% for electricity usage up to a maximum of 600kW a month for six(6) months from April 2020

• Exemption of rental payment for PPR and public housing for six (6) months

• Insurance and takaful companies will set up an RM8 million fund to bear Covid-190 screening costs of up to RM300 for each policyholder

• One-off payment of RM500 to 120,000 e-hailing drivers starting on the 1 April 2020. This is in addition to the RM600 one-off payment announced previously

• The Government and BNM will set an additional allocation of RM4.5 billion for SMEs and micro-entrepreneurs which will comprise of five initiatives

• National Caring Aid (Bantuan Prihatin Nasional) involving a one-off cash payment of RM10 billion will be given to the B40 and M40 group, including private workers, farmers and fishermen. Including: -

i. RM1,600 for households earning RM4,000 and below

ii. RM1,000 for households earning more than RM4,000

iii. RM800 for single Malaysians aged 21 and above earning RM2,000 and below; RM500 for single Malaysians aged 21 and above earning between RM2,000 to RM4,000

• The Government will pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies

• The Government will introduce a wage subsidy of RM600 a month for three (3) months to employers who have suffered a 50% decline in business since January 2020, for workers with a monthly salary of below RM4,000.

• The Government 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 (6) months starting April 2020

• Federal government premises such as school canteens, nurseries, cafeteria and convenience stores exempted from rent for six (6) months

• Government pensioners to receive RM500 one-off cash aid