RM20B for 2020 Economic Stimulus Package

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Interim Prime Minister Tun Dr Mahathir Mohamad yesterday announced RM20 billion Economic Stimulus Package to economic risks associated with COVID-19 outbreak can be addressed effectively.

He said the package is anchored on three strategies, namely mitigating impact of Covid-19, spurring rakyat-centric economic growth and promoting quality investment.

Various strategies have been formulated to ensure that Malaysian economy remains on strong foundations, he said.

Dr Mahathir said the most immediate economic impact of COVID-19 has been the sharp decline in tourist arrivals throughout the region as hotels, airlines, travel companies and more broadly the tourism-dependent retail industry have been badly affected.

FMT

To mitigate the impact, the government will implement a three-pronged approach – first, to ease the cash flow of affected businesses, second, to assist affected individuals, and third, to stimulate demand for travel and tourism.

In the announcement, Dr Mahathir unveiled a slew of measures, including cash aid and incentives.

Among the measures are as follows:

RM600 one-off payment to taxi drivers, tourist bus drivers, tourist guides and registered trishaw drivers.

RM400 special monthly critical allowance for doctors and medical personnel directly involved in containing Covid-19.

RM200 for immigration and related frontline staff from February 2020 until the end of the pandemic.

Bantuan Sara Hidup (BSH) payment for May 2020 will be moved forward to March 2020.

An additional RM100 will be paid to BSH recipients in May 2020 on top of an additional RM50 in the form of e-wallet.

RM1,000 personal income tax relief of up to RM1,000 on expenditure related to domestic tourism.

Up to RM100 in digital domestic tourism voucher per person for domestic flights, rails and hotel accommodation for all Malaysians.

Contributors allowed to reduce minimum Employees Provident Fund (EPF) contribution by four percent (from 11 percent to seven percent) effective April 1 until Dec 31 which can keep up to RM10 billion in consumers’ hands.