Muhyiddin announces economic stimulus package worth RM250b

Muhyiddin announces economic stimulus package worth RM250b

PUTRAJAYA: Prime Minister Tan Sri Muhyiddin Yassin announced a comprehensive economic stimulus package for the country at 3pm today.

The package known as package prihatin or caring package valued at RM250bil is set to benefit all Malaysians.

From the amount, RM128bil to be used to protect the welfare of the people, RM100bil to support businesses including small and medium enterprises.

Earlier on Monday (March 23), the government had announced an allocation of a total of RM600mil for the Health Ministry for the purchase of equipment and to hire contract staff, especially nurses.

It had also announced that the Employees Provident Fund contributors aged below 55, can withdraw RM500 for up to 12 months.

An allocation of RM130mil has also been announced and will be distributed equally to all states – regardless which political party is heading it – to help tackle the Covid-19 pandemic.

Below are the highlights:

  • RM500mil for Health Ministry to enhance the capability and resources of Health Ministry.
  • Additional special allowance of RM200 a month for frontliners for police, immigration, customs department
  • RM1,600 in aid to households earning below RM4,000, with RM1,000 paid in April and RM600 in May.
  • RM200 one-off aid to students of higher education institutions who are affected
  • Free Internet from 1st April until the end of MCO
  • Government together with TNB will add an allocation of RM530mil for discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from the April bill.
  • Exemption of rental payment for PPR and public housing for six months.
  • Insurance and takaful companies will set a RM8mil fund to bear Covid-190 screening test costs of up to RM300 each for policyholders
  • Govt to give one off payment of RM500 to some 120,000 e-hailing drivers beginning April 1.
  • Govt and BNM will set additional allocation of RM4.5bil for SME and micro entrepreneurs with five initiatives.
  • One-off RM500 for 120,000 e-hailing drivers nationwide with an allocation of RM60mil. This is in addition to RM600 one-off aid announced for taxi drivers that was announced in the previous stimulus package.
  • National Caring Aid (Bantuan Prihatin Nasional) involving one-off cash payment of RM10bil will be given to the B40 and M40 group, including private workers, farmers and fishermen. This includes RM1,600 to four million households earning RM4,000 and below; RM1,000 for households earning RM4,000 above; 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 and RM4,000.
  • Govt to pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies.
  • Govt to introduce a wage subsidy of RM600 a month for three months for employers with a 50% drop in business since Jan 1, for workers with a salary of below RM4,000.
  • Govt 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 months starting April 2020.

” We are a nation at war with invisible forces. The situation we are now facing is unprecedented in history. And, this government may not be the government that you voted for. But I want all of you to know that this government cares for you. I resigned to the fact that I came in as your Prime Minister not at the best moment,” he ended his speech with this powerful statement.

By: Hema Subramaniam

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economic stimulus packageMuhyiddinRM250B