THE RM20 BILLION ECONOMIC STIMULUS PACKAGE
Objective is to ensure economic risks associated with the COVID-19 virus outbreak is effectively addressed.
Strategy Anchors: -
1. Mitigating the impact of COVID-19 (aka Coronavirus)
2. Spurring rakyat centric economic growth
3. Promoting quality investments
STRATEGY 1
For a period of six (6) months from April 2020 until September 2020: -
BUSINESS OPERATION RELIEF
A deferral period of monthly income tax instalments will be granted for businesses in the tourism sector
Affected companies can revise their profit estimates for 2020 with respect to monthly income tax instalments without penalty
15% discount on monthly electricity bills for hotels, travel agencies, airlines, shopping malls, convention centres and exhibition centres.
Exemption of Human Resource Development Fund (HRDF) levies for hotels and travel-related companies
Hotels will be exempted from the 6% service tax from March 2020 – August 2020
BANKING / FINANCIAL FACILITIES
BSN will be providing a RM2 billion Special Relief Facility in the form of working capital for Small Medium Enterprises (SMEs) at an interest rate of 3.75%
BSN will be allocating a RM200 million microcredit facility offered at an interest rate of 4% to affected businesses
All banks are requested to provide financial relief in the form of payment moratorium comprising restructuring and rescheduling loans for affected business and individuals
RENTAL / RETAIL
Hotels have been requested to offer discounts
Shopping malls have been requested to reduce rental rates
Malaysia Airport Holdings Berhad will be providing rebates on airport premise rental, landing and parking charges
ASSISTANCE FOR AFFECTED INDIVIDUALS
RM600 once-off payment to taxi drivers, tourist bus drivers, tourist guides and registered trishaw drivers
Government officers directly involved with the containment efforts will be eligible to a monthly critical allowance of RM400 for medical doctors and other medical personnel, and immigration officers and related front line staff will be eligible to a monthly allowance of RM200. This will take effect from February 2020 until the end of the epidemic.
HUMAN CAPITAL DEVELOPMENT
A double deduction will be provided on expenses incurred on approved tourism-relating training
Provision of up to RM100 million matching grant basis to HRDF to fund an additional 40,000 employees from the tourism and other affected sectors
RM50 million to subsidise digital and highly skilled courses
Retrenched Malaysian workers can rely on the EIS (Employment Insurance Systems) fund of RM1.1 billion
EIS to increase the claimable training cost from RM4,000 to RM6,000 for affected sectors
RM30 daily training allowance will be provided to trainees under EIS
TOURISM SECTOR
Personal income tax relief of up to RM1000 on expenditure related to domestic tourism
Malaysians will be eligible to digital vouchers of up to RM100 per person for domestic flights, rails and hotel accommodation
Matching grant for tourism promotion
Allocation of RM500 million has been provided for tourism vouchers and promotions
STRATEGY 2: CATALYSING RAKYAT CENTRIC ECONOMIC GROWTH
RAKYAT’S ASSISTANCE
EPF contribution by employees will be reduced from 11% to 7% with effect from 01 April 2020 to 31 December 2020
The 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 to all BSH recipients in May 2020 and a subsequent RM50 will be paid in the form of e-tunai
BNM will provide an Agrofood facility of RM1 billion at an interest cost of 3.75% to promote food production activities
Allocation of RM10 million to FAM to provide food storage facilities to support food price reductions
RM1000 grants to 10,000 local entrepreneurs to help them promote product sales on e-commerce platforms
Allocation of RM20 million to MDEC (Malaysian Digital Economy Corporation) for Perkhidmatan eDagang Setempat (PeDAS) programme to transform Pusat Internet Desa into e-commerce hubs
RURAL STIMULUS
Additional RM2 billion allocated for the immediate implementation of small infrastructure repair and upgrading projects nationwide especially in rural areas. The allocation will be channelled in partnership with State Governments, local authorities, NGO’s and local communities
Increase in procurement threshold value for balloting from RM50,000 to RM100,000 and for quotations from RM500,000 to RM800,000
STRATEGY 3: PROMOTING QUALITY INVESTMENTS
Bids quota of 1,400 MW for solar power generation will be opened up by the Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC). This is expected to drive some RM5 billion of private investments and generate 25,000 jobs
Malaysian Communications and Multimedia Commission (MCMC) to implement up to RM3 million on works related to the National Fiberisation and Connectivity Plan (NFCP)
For 2020, TNB will invest RM13 million, including accelerating projects such as LED street lights, transmission lines and rooftop solar installations
A Co-Investment fund of RM500 million to be co-invested and matched by private investors on a ratio of at least 1:3
Securities Commission and Bursa Malaysia will waive listing fees for one year for companies seeking to list on the LEAP and ACE markets; as well as companies with a market capitalization less than RM500 million seeking listing on the Main Market of Bursa Malaysia
A RM300 million SME Automation & Digitalization Facility will be provided by BNM at an interest cost of 3.75%
The Government will provide accelerated capital allowance over a two-year period on expenses incurred on machinery and equipment including ICT
Tax deduction of up to RM300,000 on renovation and refurbishment costs
Import tax and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for three (3) years commencing 01 April 2020
