Guan Eng: Issue RM45b aid package for MCO 3.0

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DAP secretary-general Lim Guan Eng calls for the government to formulate a new RM45 billion financial aid package for Malaysia’s third movement control order (MCO 3.0)

He said that the financial aid package should also last until the end of the year when the National Covid-19 Immunisation Plan (PICK) is supposed to be complete to save jobs, businesses, and livelihood.

“Since the MCO 3.0 total lockdown will be similar to MCO 1.0, the economic losses daily are estimated at RM2.4 billion.

“There is an urgent need to formulate a new RM45 billion financial aid package like last year, for the people and all economic sectors affected by the lockdown.

Sayuti Zainudin

“Even though this RM45 billion financial aid package will cause the budget deficit to increase by another 3-4 percent, the direct fund injection will help to save jobs, businesses, and economic livelihood,” he said in a statement today.

Lim, the former finance minister suggested an increase to monthly welfare payments to RM1,000, including to the unemployed, which will cost RM7 billion for the remaining 7 months of the year.

He also urged an automatic extension of the moratorium of bank loan repayments, which excluded the top 20 percent earners until PICK is completed by the end of the year.

“This will help eight million Malaysian individuals and companies. The cost should be borne by the banking industry, which still recorded profit after tax of nearly RM23 billion for 2020 as compared to RM32.3 billion in 2019,” he said.

Lim said wage incentive of RM500 a month per worker to employees and RM300 hiring incentives per worker to local employers could also help creating employment for 300,000 which will cost RM6.5 billion per annum.

He also suggested RM3.5 billion for the Health Ministry to increase hospital capacity and capability as well as medical equipment and human resources to avert the collapse of our public healthcare system.

He added that RM28 billion should be allocated in the form of financial grants; wage, rental and utility subsidies; loan guarantees and credit extensions; for the small and medium enterprises, construction, retail and the crippled tourism industry, which was affected badly during the pandemic.

“This preliminary RM45 billion financial aid package for a total lockdown MCO 3.0 is not huge when compared to RM340 billion spent under MCO 1.0 and MCO 2.0. F

“Further additional sums can be added on later, depending on the length of the total lockdown, if the RM45 billion financial aid package is deemed inadequate,” he said. – MMO