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Malaysia introduced PENJANA valued at RM35 billion to stimulate the economy

Malaysia introduced PENJANA valued at RM35 billion to stimulate the economy.

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The Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin announced an economic stimulus package on 5 June 2020, known as Economic Recovery Plan or Pelan Jana Semula Ekonomi Negara (PENJANA) valued at RM35 billion to stimulate the economy.

The government has steered the country through these challenging times by taking an approach focused on six crucial approaches – Resolve, Resilience, Restart, Recovery, Revitalise and Reform. As Malaysian enters the Recovery stage, here are some highlights introduced by the government:

  • Participating telecommunication companies will provide Malaysians with 1GB of free internet each day between 8am and 6pm, mainly for educational purposes.
  • Individual income tax exemption of up to RM5,000 for employees who receive a handphone, notebook and tablet from their employer.
  • Special individual income tax relief of up to RM2,500 on the purchase of handphones, notebooks, and tablets.
  • Malaysians over the age of 18 and earning less than RM100,000 annually will receive RM50 worth of e-wallet credit.
  • Social Security Organisation (SOCSO) will provide coverage for workers involved in accidents while working at home under the Employment Injury Scheme.
  • eVouchers of RM800 per household for mobile childcare services to be utilised from now until the end of August 2020.
  • There will be a RM1,000 increase in income tax relief for parents on childcare services expenses for the Year of Assessment (YA) 2020 and 2021.
  • The government is introducing an unlimited monthly travel pass at RM30 for use on all rail services (MRT, LRT, Monorail), BRT, RapidKL buses, and MRT feeder buses.
  • People with disabilities and single mothers registered under the Ministry of Women, Family, and Community Development (KPWKM) will receive a RM300 one-off payment.
  • The government will double the existing allocation for the PEKA B40 Programme to help fund medical treatments for low-income communities.

For more details, please click here.

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