Aid Package to Face Economic Challenges during Lockdown
The government has decided to announce lockdown 3.0 on 12 May 2021 following the increasing number of COVID-19 outbreak cases nationwide recently. The total value of the PEMERKASA Plus program is RM40 billion of which the government’s direct fiscal injection is RM5 billion.
The assistance announced through PEMERKASA Plus is hoped to be able to help the affected groups to use the B40 group in their lives that compiled lockdown 3.0 is implemented. The new measures of Pemerkasa Plus will be implemented based on three main goals, namely enhancing public health capacity, continuing the people’s concern agenda and support business continuity.
Increasing public healthcare capacity
– RM450mil allocation to increase bed and ICU capacity for hospitals under the Health Ministry, teaching hospitals and ATM hospitals. Outsourcing to private hospitals will also be done.
– RM550mil to support Covid-19 related expenses by various agencies, including medicines, reagents, and contract workers’ appointments.
– Increasing the service period for more than 14,000 contract medical officers and nurses until 2022. The government will also re-appoint over 500 healthcare personnel due to retire this year.
Continuing the welfare agenda for the people during lockdown
To this end, the government has announced several assistance such as:
1. Increase the rate of the Bantuan Prihatin Rakyat or ACA program that will be paid at the end of June 2021:
– Households earning below RM2,500, they will receive an additional ACA rate of RM500.
– The category of households earning between RM2,501 to RM5,000 will receive a rate of RM300.
– Single individuals will receive RM100.
2. Approval of the moratorium is automatic for 3 months or can choose to obtain a reduction of repayment in installments of 50% for a period of 6 months for the B40 group and people affected by job loss as well as micro enterprises and SMEs that are not allowed to operate during the lockdown period.
3. An allocation of RM1 billion for the Bus and Taxi Hire Purchase Rehabilitation Scheme.
4. Continuation of the MARA PRIHATIN Peace of Mind program which is open until 31 July 2021.
5. Extension of the Wage Subsidy Program for 1 month for all affected economic sectors at a cost of RM1.5 with a limit of 500 employees per application, borne by the Government.
6. Levy payment exemption for one month in June 2021 for employers registered with Pembangunan Sumber Manusia Berhad.
Supporting business continuity
The government has announced several assistance during lockdown through this goal, namely:
1. Increase in the rate of Special Caring Grant (GKP) to RM1,500.
2. Financing of RM1.5 billion for micro credit financing by BSN, TEKUN, MARA, SME Corp. and YAPEIM with a financing rate as low as 3%.
3. The addition of Targeted Assistance and Rehabilitation Facilities for affected SMEs by RM2 billion.
4. Special assistance on a one-off basis of RM500 to 17 thousand tourist guides, 40 thousand taxi drivers, 11 thousand school bus drivers, 4 thousand sightseeing buses and 62 thousand rental and e-hailing car drivers.
5. The Inland Revenue Board will consider an appeal for the imposition of penalties and defer payment of penalties to 2022.
6. Extension for submission of financial statements, implementation of annual meetings for public companies listed on Bursa Malaysia and moratorium on fines for late submission of statutory documents by SSM.
7. Late payment exemption for renewal of business license until 31 December 2021 for micro SMEs as well as sole proprietorship and partnership businesses.
8. Improving the Interim Measures Act to Reduce the Impact of Disease COVID-19 or Act 829.
9. Providing a 10% electricity bill discount for 3 months to hotel operators, travel and tourism agencies, shopping premises and complexes, convention centers, theme parks and local airline offices.
10. Special deduction to owners of buildings and business spaces who offer a reduction in the rent of business premises to SMEs and non-SMEs for a further 6 months until 31 December 2021 for a reduction in rent of at least 30% of the current rental rate.
11. Extension and stamp duty exemption of the Home Ownership Campaign (HOC) until 31 December 2021.
12. Extend sales tax exemption on imported CKD and CBU passenger vehicles until 31 December 2021.
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