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How Is the Government Spending RM40 Billion Stimulus Package?

Painful but necessary – that’s MCO3.0 in a nutshell 😪 The lockdown is needed to curb the spread of #Covid19 and to flatten the curve 📉

But it’s not going to be easy for everyone, with the possibility of affecting the livelihood of many. Thankfully, PM Muhyiddin had announced a RM40 BILLION PEMERKASA Plus Stimulus Package to shore up the country’s economy and assist the people during this lockdown 🙌🏻💰

Goal 1: Boosting public healthcare capacity

  • RM450 million toincrease hospital beds and procure equipment for intensive care units, for hospitals under the Health Ministry, teaching hospitals and ATM hospitals.

  • RM550 million for spending related to Covid-19 including increased operating and management expenses, procurement of medicines and reagents, and appointment of contract officers.

  • Extend the service of 14,000 contract medical officers and nurses until 2022, and appoint 500 healthcare workers who are due for mandatory retirement this year on a contract basis.

  • Expedite the Covid-19 immunisation programme – states with high population density (Selangor, Kuala Lumpur, Johor & Penang) are due for completion in October, while the rests would finish by the end of the year.

  • Government vehicles such as buses, vans, and pool vehicles will be mobilised to help senior citizens and those living far from vaccine administration centres get vaccinated.

Goal 2: Continuing the welfare agenda for the people

  • RM2.1 billion for additional payments under the Bantuan Prihatin Rakyat programme – RM500 for households earning less than RM2,500, RM300 for households earning between RM2,501 and RM5,000, and RM100 for unmarried people. Money will be remitted at the end of June.

  • Choice of a 3-month loan moratorium or 6-months of 50% reduced loan repayments, for those in the B40 group / lost work and SME enterprises that can’t operate during the MCO.

  • RM1 billion bus and taxi rehabilitation scheme for eligible bus and taxi operators to extend their loan moratorium up to 12 months and extend their loan up to 36 months.

  • RM1.5 billion for the Wage Subsidy Programme under Socso for all affected economic sectors, with a limit of 500 employees per application.

  • Companies registered under the Human Resources Development Corporation will be exempted from paying the levy for the month of June.

  • Free upskilling for workers through over 400 modules and courses available online under the e-Latih portal.

Goal 3: Supporting business continuity

  • Prihatin Special Grant increased by RM500 to RM1,500. Of this, RM1,000 will be paid in mid-June, and RM500 will be paid in July.

  • Low-interest microcredit loans totalling RM1.5 billion for traders and micro-entrepreneurs, with an interest rate of 3%.

  • Additional RM2 billion for Bank Negara’s Targeted Relief and Recovery Facility on top of the RM5 billion still available, which would offer loans to SME enterprises at 3.5% interest rate.

  • RM68 million to provide one-off RM500 special assistance for tour guides, taxi drivers, school bus drivers, tour bus drivers, rental car and e-hailing drivers.

  • Inland Revenue Board (IRB) to consider postponing penalties to year 2022.

  • Extension of 10% electricity bill discounts to affected sectors for extra 3 months from July to September.

  • Stamp duty exemption under last year’s Home Ownership Campaign extended until Dec 31.

If you need help planning and strategizing your company’s finances to ride out this pandemic, reach out to us via https://wa.me/60122192492 📲

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