PRIME Minister Muhyiddin Yassin today announced a RM250 billion economic stimulus package to mitigate the effects of the Covid-19 pandemic.

“No one will be left behind,” he said.

“The government’s priority is to combat Covid-19.”

Of the RM250 billion, RM128 billion will be spent on welfare while another RM100 billion have been earmarked for businesses, including small and medium enterprises (SMEs).

The package, known as Package Prihatin (Compassion), aims to provide immediate aid and alleviate the people’s burden, Muhyiddin said in a special televised address today.

“Whether you are a fisherman in Kukup, Johor, or a small-time farmer in Jeli, Kelantan. You may be a chalet operator in Cherating or a rickshaw rider in Malacca, a nightmarket vendor in Kuala Lumpur or at a weekly market in Kundasang.

“All of you will enjoy the benefits from this package, which cares for the people,” he said.

Malaysia’s largest-ever economic stimulus package will see RM2 billion allocated to stimulate the economy. This will be in addition to the RM20 billion package announced by former prime minister Dr Mahathir Mohamad.

The government will also channel a direct fiscal injection amounting to RM25 billion to alleviate the burden of the people and businesses in the current trying economic climate.

Muhyiddin added that the government will ensure that it does not resort to borrowings for operations and that the current fiscal account stays in surplus.

“Almost all of the measures are one-off so that it does not strain the federal government’s finances in the medium term.

“This is important in ensuring that the fiscal standing and the country’s debt is always sustainable,” he said.

On that note, the government will have to embark on fiscal consolidation in the medium term to allow it greater fiscal space in the longer term, he added.

Muhyiddin said the measures announced in the package, especially the Bantuan Prihatin Nasional cash aid, will sustain economic activities.

Additionally, the package is aimed at spurring domestic investments, which will have a high multiplier effect and help in sustaining jobs.

For this purpose, RM2 billion has been allocated for small projects, such as road works, upgrading dilapidated schools in Sabah and Sarawak, cleaning houses of worship and police stations, and boosting tourism amenities. 

The small projects allocation, worth RM2 billion, announced under the previous package will also be continued. – March 27, 2020.