Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the RM10 billion Prihatin Supplementary Initiative Package (Kita Prihatin) is expected to have a positive impact on the nation’s economic growth in the fourth quarter of 2020. He said the economic stimulus packages announced by the government – Prihatin, Prihatin SME+, Penjana and Kita Prihatin, worth a total of RM305 billion – are expected to contribute 3.7 to 4.0 per cent to the nation’s gross domestic product this year. The move will also place the country in a better position for economic recovery by 2021, he said. “The government is also expecting a multiplier effect from the measures implemented under Kita Prihatin and the economic stimulus packages which are currently in place,” he said in a statement today.
On Wednesday, Prime Minister Tan Sri Muhyiddin Yassin announced the Kita Prihatin package, comprising the RM7 billion Bantuan Prihatin Nasional 2.0 (BPN 2.0), RM2.4 billion Targeted Wage Subsidy Programme and RM600 million Prihatin Special Grant (GKP).
Tengku Zafrul said the BPN 2.0 will not only ease cashflow challenges, but also allow individuals and families to purchase their daily necessities, including promotional items under the Penjana initiative through the Buy Malaysian Products campaign. “At the same time, the Targeted Wage Subsidy Programme 2.0 and the GKP will help to guarantee business and job sustainability, which ensure that economic activities can be conducted and productivity increased. “Based on recent economic recovery indicators, such as the reduction in the unemployment rate and the increase in the Industrial Production Index, Leading Index as well as the retail and recreation sectors, the government is confident that Kita Prihatin will be able to maintain the recovery momentum,” he said.
The minister said although the government’s expenditure is expected to increase due to the additional stimulus measures, the government’s objectives remain consistent, prioritising the people’s well-being, business sustainability and job retention. At the same time, he said the government remains committed in ensuring fiscal discipline, adding that the Finance Ministry (MoF) is monitoring various economic indicators at the domestic and global level in ensuring that the country remains on track for a strong economic recovery.