Prime Minister Tan Sri Muhyiddin Yassin announcing the second stimulus package in a live televised broadcast. (Photo by Abdul Ghani Ismail/The Edge)
Additional stimulus package measures announced by Prime Minister Tan Sri Muhyiddin Yassin on April 6, 2020:
Read Prime Minister Tan Sri Muhyiddin Yassin's second speech on the Prihatin Rakyat Economic Stimulus Package here
• PM: Govt provides additional assistance for SMEs under Prihatin Tambahan economic stimulus package amounting to RM10 billion
• The salary subsidy for SMEs under the Prihatin stimulus package has been expanded to RM13.8 billion from RM5.9 billion, with additional measures for all SME sizes (from under 75 employees to over 200 employees).
• PM: Landlords urged to provide rental discount of 30% to SMEs during MCO and 3 months after MCO, to receive tax break for April-June period
• PM: Foreign worker levy cut by 25% for those with permit ending Dec 31, 2020, but discount not applicable for domestic helpers
• PM: Special grant of RM3,000 each for eligible micro businesses registered with the Inland Revenue Board amounting to RM2.1 billion for 700,000 micro businesses.
• PM: 2% interest rate under Bank Simpanan Nasional Micro Credit Scheme to be waived; scheme will now be expanded to Tekun Nasional with maximum credit of RM10,000
• PM calls for financial services providers registered under Moneylenders Act 1951 to provide six-month moratorium for SME loans from April 2020, as what banks have done
• PM: SMEs can apply for extension to provide statutory documents to SSM (within 30 days after last day of MCO), extension to submit FYE Sept/Dec 2019 financial statement (within 3 months after last day of MCO)
• PM: MoF formed LAKSANA unit to ensure smooth implementation of Prihatin initiatives, will report to Ministry of Finance and Prime Minister.
• PM: Employers advised to approach Human Resource Department to discuss employee contract terms, such as salary cut, no paid leave during MCO
• PM: Govt will consider initiatives to stimulate startup ecosystem, seen as enablers for Industrial Revolution 4.0
• PM: IMSME.com.my, a one-stop portal for SMEs applying for loans under Prihatin, has been set up by Credit Guarantee Corp with support from Bank Negara.
Stimulus package measures announced by Prime Minister Tan Sri Muhyiddin Yassin on March 27, 2020:
Read Prime Minister Tan Sri Muhyiddin Yassin's first speech on the Prihatin Rakyat Economic Stimulus Package here
• PM adds RM230b allocation to stimulus package, after late-February's RM20b announcement. This brings total to RM250b
• RM1 billion additional allocation for MoH for purchase of equipment
• RM8 million fund to cover Covid-19 testing costs of up to RM300 for all insurance policy and takaful holders
• Deferment of insurance premium payment for those affected by the Covid-19 outbreak
• RM10b allocation for one-off payment to support both B40 and M40 households
• One-off RM1,600 financial assistance for four 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
• 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 and 15% discount for usage of 301-600kw
• One-off payment of RM500 for Grade 56 and below civil servants, including contract workers, in April
• RM100 million allocation to set up storage and distribution food centres
• Special fund of RM64.4 million for farmers and fishermen associations that are able to produce food between three and six months, to ensure food security
• Free internet for all users starting April 1 until end of MCO, with RM600m allocation
• Additional RM400 million investment to ensure efficiency of telecommunication infrastructure
• Govt to subsidise RM600/month for workers earning below RM4,000 for three months, at companies whose income has halved since Jan 1
• One-off financial assistance of RM500 for 120,000 e-hailing drivers, totaling RM60 million.
• RM110 million allocation for 80,000 workers involved in sanitation and food supply in schools, higher education institutions, public training institutions and other agencies
• 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)
• Deferment of income tax payment for SMEs for three months starting April 1
• Exemption of HRDF levies for all sectors for six months, starting April 1
• 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 April 1
• All projects under Budget 2020 to proceed, including East Coast Rail Link, MRT2, and the National Fiberisation and Connectivity Plan (NFCP)
• Govt to focus on domestic investments — all projects valued at RM2b, as stipulated under the previous package, will be carried out from April
• 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).
• All ministries to review their budgets, so costs can be reduced amid the current challenging climate
• The country is at war with invisible forces, says PM. "Although this was not the government that you voted for, this government cares for you."
• Increase in special allowance for medical personnel to RM600 from RM400 starting April 1 until the outbreak ends
• RM200 allowance for members of the police, military, customs, immigration, RELA and civil defence forces that are involved in 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
• RM25 million allocation for vulnerable groups for food, health and shelter assistance
• Deferment of repayment for Skills Development Fund Corporation borrowers from April 1 to Sept 30, 2020
• Covid-19 patients can claim RM50 per day under MySalam for a maximum of 14 days
• 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 for those with rent-to-own units from April to September 2020, totalling RM5.7 million in costs
• Six-month payment exemption by Dewan Bandaraya Kuala Lumpur for those staying in public housing
• Six-month rental exemption for all premises owned by the Federal Government, including school canteens, kindergartens, cafeteria, convenience stores and others
• RM500 one-off assistance for retired civil servants in April
Read about the measures in the first stimulus package here.