By Ranjit Singh
INTERIM prime minister Tun Dr Mahathir Mohamad announces a RM20 bil economic stimulus package to ensure that the economic risk from the Covid-19 outbreak is handled effectively.
Other salient points in the economic stimulus include:
- Bank Negara Malaysia to provide Special Credit Guarantee of RM2 bil for SMEs at 3.75% interest;
- Malaysia Airports Holdings Bhd to reduce rental of its retail space at the airport, and reduce the landing and parking charges;
- EPF contribution rate by employee to be reduced by 4% from 11% to 7%;
- To assist businesses most adversely affected, the government proposes for a period of six months from April to September 2020:
- To allow deferment of monthly income tax instalment payments for businesses in the tourism sector. In addition, companies affected by the Covid-19 to be allowed to revise their profit estimates for 2020 with respect to monthly income tax instalment payments without penalty;
- To provide 15% discount in monthly electricity bills to hotels, travel agencies, airlines, shopping malls, and convention and exhibition centres;
- To exempt Human Resource Development Fund (HRDF) levies for hotels and travel-related companies;
- To exempt the 6% service tax for hotels. However, this exemption will be made effective earlier, that is from March to August 2020.
- Bank Simpanan Nasional will allocate RM200 mil for micro credit financing at 4% interest. The approval process for fund application at Bank Pembangunan under the Tourism Infrastructure Fund of RM 1.5 bil will be hastened;
- All banks are mandated to lessen the financial burden of the rakyat by a delay in repayment or restructuring of loans. BNM will monitor the implementation and compliance among all financial institutions.
- Government will provide a one-off RM600 payment to taxi drivers, bus drivers, tour guides and rickshaw riders.
- As a token of appreciation to government frontliners in combating the Covid 19 outbreak, RM400 will be given to doctors and medical personnel, and RM200 to immigration personnel. This allowance will take effect in February 2020 till the outbreak is contained.
- The government will also provide up to RM100 mil on a matching grant basis to HRDF to fund an additional 40,000 employees from the tourism and other affected sectors.
- The government will also provide RM50 mil to subsidise short courses in digital skills and highly skilled courses. This incentive is expected to benefit 100,000 Malaysians.
- Retrenched workers can rely on the Employment Insurance System (EIS) whose funds stand at RM1.1 bil currently. Furthermore, EIS will increase the claimable training cost from RM4,000 to RM6,000 for the affected sectors. A daily training allowance of RM30 per day will also be provided to trainees under EIS.
