Pemerkasa Plus: A welcoming but insufficient measure

The recent movement control order announced nationwide amid the rising number of Covid-19 cases threatens to disrupt the economic gains seen during the second half of last year. In response, the Prime Minister has unveiled yet another round of economic stimulus initiatives worth a total of RM40bil which includes a RM5bil direct fiscal injection, collectively known as Pemerkasa Plus.

Notably, these initiatives focus primarily on boosting the incomes of the B40 as well as the Micro, Small and Medium Enterprise (MSME) groups, mostly by means of delivering direct cash handouts, automatic loan moratorium approvals, wage subsidies and small cash grants. These initiatives are highly welcoming given the recent economic turmoil that has rattled both investors and consumers alike and provide a boost to near-term consumption.