Malaysia announces RM250 bill economic stimulus package

Prime Minister Tan Sri Muhyiddin Yassin today unveiled an economic stimulus package valued at RM250billion. From the amount, RM128bil will be used to protect the welfare of the people and RM100bil to support businesses including small and medium enterprises. The Government and Bank Negara Malaysia will set additional allocation of RM4.5bil for SME and micro entrepreneurs which will comprise of five initiatives.

The government on Monday had announced an allocation of a total of RM600mil for the Health Ministry for the purchase of equipment and to hire contract staff, especially nurses. It had also announced that the Employees Provident Fund contributors aged below 55, can withdraw RM500 for up to 12 months.

An allocation of RM130mil has also been announced and will be distributed equally to all states – regardless which political party is heading it – to help tackle the Covid-19 pandemic.

A special allowance of RM200 a month will be paid for frontliners, immigration and customs. RM1,600 will be paid out to households earning below RM4,000 between April-May. The package also include a RM200 one-off aid to students of higher education institutions who are affected by the Covid-19. Free Internet from April onwards until the end of Movement Control Order.

Government together with TNB will add an allocation of RM530mil for discounts between 15% and 50% for electricity usage up to a maximum of 600kW a month for six months from the April bill. A one-off payment of RM500 will be made to some 120,000 e-hailing drivers beginning April 1.

Under the package, the government will introduce a wage subsidy of RM600 a month for three months for employers with a 50% drop in business since January 1, for workers with a salary of below RM4,000.