As announced on Tuesday, 28th of June 2021 at 5:00 p.m. the Perikatan National government of Malaysia has unveiled an RM150 billion recovery package. Making this the largest cash injection since the RM250 billion 2020 stimulus over a year ago.
The package will include RM10 billion in direct fiscal spending by the government in the form of a cash injection, wage subsidies and unemployment assistance. Targeted as assisting low-income households and businesses affected as a result of the pandemic.
Low income and middle-income groups will receive something between RM100 and RM1,300 in cash aid, with the first payments being released in August. RM500 million is being set aside for Malaysians who have lost their income, payouts from this sum will happen sometime in October.
With the cooperation of banks, the prime minister announced that we can expect a six-month loan moratorium to be in effect for all individual borrowers. This is to ensure that the B40, M40, T20 groups and micro-entrepreneurs are not left behind. Individuals simply need to apply and approval will be given (subject to the respective banks’ terms and conditions). In addition to that, EPF contributors are allowed to withdraw up to RM5,000 either as a lump sum or in RM1000 increments for another 5 months.
For SMEs, the moratorium facility will be offered following bank approval (subject to the respective banks’ terms and conditions). Application for this moratorium will open on the 7th of July 2021.
RM3.8 billion in wage subsidies, tax breaks and grants are among the other measures being taken to offer aid for all Malaysians. Prime Minister Tan Sri Muhyiddin Yassin also announced that Malaysia will spend an additional RM 1 billion to boost the current vaccination programme, it will include RM 400 million for the purchase of vaccines.
Here’s a quick recap of the previous stimulus package offered and an overview of this new one.
2020
- March 29: RM250 billion Prihatin
- April 6: RM10 billion Prihatin SME+
- June 5: RM35 billion Penjana
- Sept 23: RM10 billion Kira Prihatin
2021
- January 18: RM15 billion Permai
- March 17: RM 20 billion Pemerkasa
- May 31: RM40 billion Pemerkasa+
Also for highlights on the current Pemulih package here’s a breakdown;
2021 Aid Package Highlights
- RM4.5 billion in cash handouts to 11 million people
- RM 500 million direct cash aid to people unemployed due to Covid-19
- RM20 million in seed funding for disabled or homeless to start a business
- RM1 billion for vaccination effort, and the purchase of vaccines.
- 5% – 40% electricity discount for domestic users from July to September 2021, with a 10% discount for tourism-related businesses until December 2021.
- RM1,500 each for 20,000 disabled individuals over a 3 month period
- 6-month bank loan moratorium for all individual borrowers
Sources:
Free Malaysia Today; https://www.freemalaysiatoday.com/category/opinion/2021/06/29/will-the-pemulih-package-restore-recovery/
Malaysia Kini, https://www.malaysiakini.com/news/580815
The Star Online; https://www.thestar.com.my/news/nation/2021/06/29/pemulih-a-relief-for-households-smes-say-eonomists
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