Malaysia’s Prime Minister Tan Sri Muhyiddin Yassin yesterday announced RM40 billion in economic aid as the country begins its national lockdown or MCO3.0 on 1 June 2021. The Pemerkasa Plus economic stimulus package has three main thrusts – to boost public healthcare capacity, to preserve the people’s welfare and to ensure the sustainability of businesses in a bid to cushion the economic impact of the lockdown that will take place from 1-14 June 2021.
The package comes on top of previously announced stimulus packages worth over RM100 billion combined. Highlights of the Pemerkasa Package Plus that are relevant for MIA members are as follows:
Additional RM1 Billion to Strengthen Public Healthcare
The funds will help expedite the COVID-19 immunisation programme and increase vaccination capacity to 150,000 jabs per day from 80,000.States with high population density (Selangor, Kuala Lumpur, Johor, and Penang) are due to complete vaccination in October, while the rest would finish by the end of the year.
Continuing the ‘Prihatin Rakyat’ Agenda
- RM2.1 billion for additional payments under the Bantuan Prihatin Rakyat (BPR) programme –RM500 for households earning less than RM2,500, RM300 for households earning between RM2,501 and RM5,000, and RM100 for unmarried individuals. Additional payments are to be credited at the end of June, and an additional RM2.4 billion allocated for BPR payments in September.
- Choice of a three-month loan moratorium or six months of 50 percent reduced loan repayments, for those in the B40 group, those who have lost their jobs, and small-and-medium enterprises that cannot operate during the MCO.
- The federal government will allocate RM1.5 billion to extend the Social Security Organisation’s (SOCSO) wage subsidy programme by one month in all economic sectors, for up to 500 workers per application.
- Companies registered under the Human Resource Development Corporation will be exempted from paying the levy for the month of June.
- Free upskilling for workers through over 400 modules and courses available online under the e-Latih portal.
Supporting Business Continuity and Ensuring Sustainability
- RM 1.5 billion allocated as microcredit working capital for businesses.
- Prihatin Special Grant will be increased from RM1,000 to RM1,500. Out of this amount, RM1,000 will be paid in mid-June, and RM500 will be paid in July.
- Low-interest microcredit loans from BSN, Tekun, Mara, SME Corp and Yapeim totalling RM1.5 billion for traders and micro-entrepreneurs, with an interest rate of three percent.
- Additional RM2 billion for Bank Negara’s Targeted Relief and Recovery Facility on top of the RM5 billion still available, which would offer loans to small-and-medium enterprises at 3.5 percent interest.
- Deadline for submission of financial statements to the Companies Commission and for listed companies to hold annual general meetings for listed companies will be extended.
- Companies Commission will waive penalties for late renewal of business licenses for micro-businesses, sole proprietorships, and partnerships, up to Dec 31 2021.
- Protection for companies unable to fulfil their contractual obligations will be extended under the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act2020 until Dec 31. The government will continue to offer free mediation services through the Covid Mediation Centre.
- 30 percent discount on rental of business premises for MARA entrepreneurs.
- Exemptions for tourism tax and service tax for hotel stays extended until Dec 31 2021.
- Stamp duty exemption under last year’s Home Ownership Campaign extended until Dec 31. It was due to expire on 31 May 2021.
- Sales tax exemption for CKD and imported CBU passenger vehicles extended from July 1 to Dec31 2021.
Please click HERE for the Prime Minister’s speech.
The Institute hopes that the Pemerkasa Plus package stimulus will boost the morale of our members, and that member firms in particular will benefit from the concessions that are aimed at supporting businesses and jobs through the lockdown period.
MIA will continue to closely monitor the situation, maintain close communication with the Government, regulators and our stakeholders, and will notify members of any future developments.
In the interim, MIA hopes that everyone will comply with the lockdown SOPs and all rules and regulations for our mutual benefit.
We thank you for your understanding and patience and we hope that everyone will stay safe.
#STAYSAFE #ACCOUNTABILITY #INTEGRITY
Dr. Nurmazilah Dato’ Mahzan
Chief Executive Officer