Prime Minister Muhyiddin Yassin today announced an economic stimulus package of RM250 billion to cushion the impact of the Covid-19 outbreak, more than 10 times the RM20 billion allocated by his predecessor Dr Mahathir Mohamad last month.
“No one will be left behind,” he said.
“The government’s priority is to combat Covid-19.”
Of the RM250 billion, RM128 billion will be spent on welfare while another RM100 billion have been earmarked for businesses, including small and medium enterprises (SMEs).
He said an additional RM1 billion would be allocated to the health ministry on top of the RM500 million previously announced while assistance would be sought from private hospitals.
Muhyiddin also said “we are a nation at war with invisible forces”.
“The situation we are now facing is unprecedented in history. This government may not be the government that you voted for. But I want all of you to know that this government cares for you.
“I resigned myself to the fact that I came in as your prime minister not at the best moment. I face political, economic and health crises all at the same time.”
Features of the stimulus package include:
- RM400-RM600 special allowances per month for medical frontliners (doctors, nurses, health workers) from April 1 until crisis is resolved
- RM200 special allowance per month for army and police personnel, as well as customs, immigration and Rela personnel involved on the front line, from April 1 until end of MCO
- One-off payments totalling RM10 billion for the M40 group, farmers, small businesses in the private sector, Felda settlers and fishermen
- RM1,600 for four million households earning RM4,000 and below with RM1,000 paid in April and RM600 paid in May
- RM1,000 for 1.1 million households earning RM4,000 to RM8,000, with RM500 paid in April and the balance in May
- RM800 for three 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 with an income of RM2,000 to RM4,000 with RM250 paid in April and RM250 paid in May
- One-off payment of RM200 in May for students in higher education institutions
- RM25 million for food and shelter for senior citizens, OKU and Orang Asli, in cooperation with NGOs
- Six-month moratorium on PTPTN and PTPK payments
- Six-month rent exemption for PPR and public housing residents
- Additional allocation of RM530 million for discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from the April bill
- Free Internet from April until the end of MCO
- Wage subsidy of RM600 a month for three months for employers with a 50% drop in business since Jan 1, for workers with a salary of below RM4,000
- Benefitting 3.3 million workers through an RM5.9 billion allocation, employers not allowed to cut pay of staff earning less than RM4,000 a month
- RM60 million for one-off payments of RM500 for 120,000 e-hailing drivers