THE RM250 bil Prihatin Rakyat Economic Stimulus Package (PRIHATIN) is a perfect combination of growth-driven and people-centric strategies to support the economy and safeguard the rakyat’s wellbeing.
The integrated measures will aid businesses and ease the people’s financial burden in the short and long term, against the backdrop of the Covid-19 pandemic and its devastating effect on economic activities.
Special attention has been given to micro-entrepreneurs and small and medium enterprises (SMEs), which is expected to contribute up to 41% to the gross domestic product this year.
Prime Minister Tan Sri Muhyiddin Yassin also addressed concerns over cash flow issues affecting company owners by introducing the Employer’s Negotiation Service programme which allows adjustments to Employees Provident Fund contributions and Human Resource Development Fund levy exemption.
In the meantime, SMEs are also allowed to defer their monthly income tax instalment payments for three months beginning April 1, 2020 to ease their burden.
Affected sectors may also amend the amount of income tax payable for the third, sixth and ninth instalments for the basis period of the assessment year, he said in his 40-minute speech today.
The prime minister also kept his promise that no one will be left behind by expanding the moratorium measure to cover loans from TEKUN Nasional, MARA, cooperatives and government agencies from April 1.
Such measures would help companies to maintain their workforce and ensure business sustainability.
Another significant move is the RM50 bil guarantee scheme facility with guarantee coverage of up to 80% aimed at financing working capital needs.
To be managed by Danajamin Nasional, the facility aims to help viable businesses affected by the Covid-19 pandemic.
To support the fight against the pandemic, Muhyiddin allocated an additional RM1 billion to the Health Ministry for the purchase of equipment and for services.
He stressed that the government’s top priority at this point of time is to contain the pandemic.
Understanding the plight of private sector employees, the government has also introduced a wage subsidy programme worth RM5.9 billion to help employers retain their workers.
On concerns over the government’s ability to fulfil all demands amidst fiscal constraints, Muhyiddin said the package was based on the country’s current fiscal capability and adequate domestic financial market liquidity.
“Almost all of these measures are one-off, so as not to burden the Federal Government’s finances in the medium term,” he said.
The government took careful consideration to ensure the country’s fiscal and debt position is sustainable, he said.
Due to the comprehensive approach by the government to tackle current challenges and stimulate the economy, trading on Bursa Malaysia ended higher across the board, with the key index FBM KLCI rising 15.00 points to 1,343.09.
Similarly, the ringgit stood higher at 4.3280/3350 against the US dollar compared with yesterday’s close of 4.3300/3400.
So, this RM250 bil vaccine is definitely a worthy and much-needed package to fight the pandemic as well as to stimulate the economy hit by the coronavirus. – March 28, 2020, Bernama
