Highlights of RM20bil stimulus package


Minimum EPF contribution by employees to be reduced by 4% from 11% to 7%, with effect from Apr 1 to Dec 31, 2020. This will potentially unlock up to RM10 billion worth of private consumption. Malaysian workers have the option to opt out from the scheme and maintain their contribution rate.

KUALA LUMPUR: Tun Dr Mahathir Mohamad had on Thursday unveiled the RM20bil stimulus package to offset the fallout from the Covid-19 coronavirus.

Below are the highlights:

• Stimulus package is worth RM20 billion

• Bank Simpanan Nasional (BSN) provides RM200 million micro credit at 4% interest rate

• Stimulus package will be based on three strategies: counter Covid-19 impact, boost people-based growth, encourage quality investments

• MAHB to cut rental for tenants, landing charges and parking fees at airports

• Postponement of income tax monthly installments for income tax allowed for tourism-related companies

• Bank Negara Malaysia provides RM2 billion guaranteed financial aid for SMEs at 3.75% interest rate

• All banks are required to reduce monetary burden in the form of postponement of payments or rescheduling of loans

• Temporary six months discount of as much as 15% for electricity bills for hotels, tourism agencies, airlines, and shopping centres

• Hotels to get service tax breaks from March 2020 to August 2020

• In spirit of shared responsibility to overcome current challenges, govt calls on industry players to play their part — for hotels to offer discounts and shopping malls to reduce rental rates

• Malaysia expects economic growth for 2020 to be between 3.2% and 4.2%

• Minimum EPF contribution by employees to be reduced by 4% from 11% to 7%, with effect from Apr 1 to Dec 31, 2020. This will potentially unlock up to RM10 billion worth of private consumption. Malaysian workers have the option to opt out from the scheme and maintain their contribution rate.

• A payment of RM200 to all Bantuan Sara Hidup (BSH) recipients scheduled for May 2020 will be brought forward to March 2020. An additional RM100 will be paid into the bank accounts of all BSH recipients in May 2020. Subsequently, an additional RM50 will be channelled in the form of e-tunai.

• As a result of the stimulus package, fiscal deficit estimated to increase to 3.4% of GDP from targeted 3.2%

• Grants of RM1,000 to RM10,000 for local entrepreneurs to promote the sale of their products on e-commerce platforms

• Securities Commission Malaysia and Bursa Malaysia will waive listing fees for one year, for companies seeking listing on Leading Entrepreneur Accelerator Platform (LEAP) or Access, Certainty, Efficiency (ACE) markets, as well as companies with market capitalisation of less than RM500 million seeking listing on the Main Market

• Import duty and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for three years commencing 1 April 2020.

• Dr M: We have enough source of money for now, no issuance of bonds needed

• Dr M: If the unity government is formed, it will have to adhere to this stimulus package
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Mahathir , Covid-19 , stimulus package

   

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