Summary of Economic Stimulus Package 2020 in Malaysia
On 27 March 2020, Prime Minister Muhyiddin Yassin has announced an economic stimulus package known as “caring package” valued at RM250 billion that will benefit all the Malaysians.
Below are the highlights of the economic stimulus package.
- Additional RM1 billion to be allocated to the health ministry for the purchase of equipment and services, including assistance to be sought from private hospitals.
- Insurance and takaful industry to set up a special fund of RM8 million to cover the cost of screening tests worth up to RM300 for each policyholder directed by ministry of health to undergo testing at a private hospital or private laboratory.
- Special allowances of doctors, nurses and health workers on the front line of RM400 to be increased to RM600 per month from April until the crisis is resolved.
- Special allowance of RM200 per month for army, police personnel, customs and Rela staff involved on the front line would be given from April until the crisis is resolved.
- One-off cash payment of RM10 billion will be given to the B40 and M40 group. This includes:
- RM1,600 for 4 million households earning RM4,000 and below with RM1,000 to be paid in April and RM600 to be paid in May.
- RM1,000 for 1.1 million households earning RM4,000 to RM8,000, with RM500 to be paid in April and RM500 to be paid in May.
- RM800 for 3 million singles aged 21 and above earning RM2,000 and below, with RM500 to be paid in April and RM300 to be paid in May.
- RM500 for 400,000 singles aged 21 and above with an income of RM2,000 to RM4,000 with RM250 to be paid in April and RM250 to be paid in May.
- RM200 for students at higher education institutions.
- Six-month moratorium on PTPTN and PTPK payments.
- Under MySalam programme, RM50 per day for maximum of 14 days to be claimed by patients. This is also applicable to those who are quarantined because of Covid-19.
- Exemption of rental payment for public housing project (Projek Perumahan Rakyat dan Perumahan Awam) for six months.
- Discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from April’s bill.
- Free internet from April onwards until the end of movement control order (MCO).
- RM500 one-off payment for 1.5 million public servants and 850,000 government retirees in April.
- Wage subsidy of RM600 a month for 3 months for employers with a 50% reduction in business since 1 January 2020, for workers with a salary below RM4,000.
- RM500 one-off payment for 120,000 e-hailing drivers.
- Additional allocation of RM4.5 billion funding for SME and micro-entrepreneurs which will comprise of five initiatives.
- Option for deferment, restructuring and rescheduling of EPF employer contributions.
- Human Resource Development Fund (HRDF) levy exempted for all sectors for six months starting April 2020.
- 3 months extension of income tax instalment payment for SMEs starting April 2020.
- 6 months extension of income tax instalment payment for the tourism sector.
- A social financing programme to be introduced to aid for B40 businesses and people who have lost their source of income.