PM Unveils New Economic Stimulus Package RM250 Billion!

Earlier today (Friday 27 March 2020), Prime Minister Muhyiddin Yassin announced a new economic stimulus package in response to the ongoing Covid-19 crisis in the country. If you missed the announcement on FB Live, don’t worry. We’ve summarised the key points for you below: 

1. In addition to the RM500 million allocation set aside in the earlier stimulus package, an additional RM1 billion will be allocated to the Ministry of Health for the purchase of relevant equipment and services in the fight against Covid-19, including roping medical resources from the private sector. 
2. Insurance industry and Takaful will also set up a special fund to cover the cost of screening/testing (worth RM300/each) for policy holders ordered by KKM to undergo Covid-19 testing in private medical facilities/labs.
3. A RM600 allowance will be paid out monthly to doctors, nurses and all other medical workers involved in dealing with the pandemic. This will start in April and end only when the pandemic is over. 
4. In addition, RM200 will be given as a monthly allowance to members of the army, the police, customs, immigration officers, RELA personnel and all those involved in implementing the MCO.

5. One-off payments will be given according to the categories below:

6. Under the government’s mySalam scheme, those belonging to the B40 group will receive RM50/day up to 14 days if they are diagnosed with Covid-19. This benefit is now extended to those ordered to undergo quarantine (PUIs). 
7. Those who have savings under the PRS Retirement Scheme will be allowed to withdraw up to RM1,500 of their savings without a penalty.
8. Exemption of rental payment for PPR and public housing for six months. This also applies to business premises owned by the federal government. 
9. Discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months starting April. The 2% discount for all commercial users will still be offered.
10. Free Internet will be available to all starting April until the end of the MCO.
11. RM500 (one-off) payment will be given to public sector workers in April.
12. RM1 billion will be invested to ensure that food supply during this time is sufficient, including RM100 million for infrastructure and food storage facilities. 
13. A wage subsidy of RM600/month (for three months) will be introduced for employers with a 50% drop in business since Jan 1, and for workers with a salary below RM4,000.
14. A one-off RM500 payment will be given to all E-Hailing drivers. Taxi drivers will receive RM600
15. The government will also pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies.
16. An additional funding of RM4.5 billion to assist SMEs and micro businesses.
17. Human Resource Development Fund (HRDF) levy exempted for all sectors for six months starting April 2020.
18. The government will also provide RM500 cash assistance to over 1.5 million civil servants in grades 56 and under, including contract workers. Payment will be made by April 2020.

Undeniably, there’s plenty to digest from the stimulus package and there are yet details that need to be clarified. We will update you when such information becomes available.