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Malaysia introduced Prihatin Economic Stimulus Package valued at RM250 billion

Malaysia introduced Prihatin Economic Stimulus Package valued at RM250 billion.

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The Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin announced on Friday, 27 March 2020 an economic stimulus package known as “Prihatin” or caring package valued at RM250 billion that will benefit all Malaysians. The allocation are as follows – RM128 billion channelled towards welfare of citizen, RM100 billion for businesses including SMEs and RM2 billion to strengthen the economy and RM20 billion that was already announced in the previous announcement.

The highlights are:

  • Additional allocation of RM230 billion to the stimulus package, after late-February’s RM20 billion announcement. This brings a total to RM250 billion
  • Additional allocation of RM1 billion for the Ministry of Health for purchase of equipment
  • Deferment of insurance premium payment for those affected by the COVID-19 outbreak
  • RM10 billion allocation for a one-off payment to support both B40 and M40 households
  • One-off RM1,600 financial assistance for 4 million households earning RM4,000 per month and below
  • One-off RM1,000 financial assistance for 1.1 million households earning between RM4,000 and RM8,000 per month
  • One-off RM800 financial assistance for unmarried individuals earning RM2,000 per month and below
  • One-off RM500 financial assistance for 400,000 unmarried individuals earning between RM2,001 and RM4,000 per month
  • One-off payment of RM500 for Grade 56 and below civil servants, including contract workers, beginning April
  • A special fund of RM64.4 million for farmers and fishermen associations that can produce food between three and six months, to ensure food security
  • RM8 million fund to cover COVID-19 testing costs of up to RM300 for all insurance policy and takaful holders
  • RM530 million allocation to provide 15-50% discounts on electricity bills for usage of up to 600kw for six months from April:
    • 50% discount for usage of below 200kw
    • 25% for usage of between 201-300kw
    • 15% discount for usage of 301-600kw
  • Allocation of RM100 million to set up storage and distribution food centres
  • Free internet from April 2020 onwards till the end of movement control order (MCO)
  • Government to subsidise RM600 per month for workers earning below RM4,000 for 3 months, at companies whose income has halved since 1 January 2020
  • One-off financial assistance of RM500 for 120,000 e-hailing drivers, totalling RM60 million beginning 1 April 2020
  • RM110 million allocation for 80,000 workers involved in sanitation and food supply in schools, higher education institutions, public training institutions and other agencies
  • Deferment of income tax payment for SMEs for 3 months, starting 1 April 2020
  • Exemption of Human Resources Development Fund levies for all sectors for 6 months, beginning 1 April 2020
  • Deferment of repayment for Skills Development Fund Corporation borrowers from 1 April to 30 September 2020
  • Interest income of banks will only be taxed after the moratorium period
  • Moratorium on loans to be expanded to include loans from TEKUN, MARA and cooperatives as well as government agencies that grant loans to SMEs, starting 1 April
  • Additional RM400 million investment to ensure efficiency of telecommunication infrastructure
  • Additional RM4.5 billion for SMEs, micro-entrepreneurs comprising an additional allocation for special relief facility (RM3 billion), additional allocation to improve access to financing for SMEs (RM1 billion), additional funds for micro-credit schemes (RM500 million)
  • All projects under Budget 2020 to proceed, including East Coast Rail Link, MRT2 and the National Fiberisation and Connectivity Plan (NFCP)
  • Projects to be executed include infrastructure projects at FELDA settlements and others (RM600 million), the repair and upgrade of schools in Sabah and Sarawak (RM350 million) and repairs for housing for the poor (RM150 million)
  • Government to focus on domestic investments — all projects valued at RM2 billion, as stipulated under the previous package, will be carried out from April 2020
  • Increase in special allowance for medical personnel to RM600 from RM400 starting 1 April 2020 until the end of the outbreak
  • RM200 allowance for members of the police, military, customs, immigration, RELA and civil defence forces that are involved in the enforcement of the MCO
  • RM3.2 billion under Bantuan Sara Hidup will be paid in July 2020
  • Higher education students to receive one-off financial assistance of RM200 in May 2020
  • RM25 million allocation for vulnerable groups for food, health and shelter assistance
  • COVID-19 patients can claim RM50 per day under MySalam for a maximum of 14 days
  • A total of up to RM1,500 of pre-retirement funds can be withdrawn from Account B of private retirement schemes, without any tax penalty between April and December 2020
  • Six-month rental exemption for those staying at People’s Housing Projects, with RM3 million in costs to be borne by the government
  • Six-month payment exemption by Dewan Bandaraya Kuala Lumpur for those staying in public housing
  • Six-month payment exemption for those with rent-to-own units from April to September 2020, totalling RM5.7 million in costs
  • Six-month rental exemption for all premises owned by the Federal Government, including school canteens, kindergartens, cafeteria, convenience stores and others
  • All ministries to review their budgets, so costs can be reduced amid the current challenging climate
  • RM500 one-off assistance for retired civil servants in April 2020

For detailed information of the Prihatin Economic Stimulus Package 2020, please read the full speech here.

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