THE government today announced a RM35 billion stimulus package to revive the economy ravaged by Covid-19 and the subsequent movement control order to curb the pandemic.

Prime Minister Muhyiddin Yassin, in a special address to the nation today, said the Economic Recovery Plan (Penjana) will have three areas of focus: empowering people, propelling businesses and stimulating the economy.

Muhyiddin said RM10 billion will be a direct fiscal injection from the government. 

He said Penjana will achieve these focus areas through four key thrusts.

“The first is to enable work and reduce unemployment; the second is to ensure affordability and provide liquidity; the third is on digitalisation and operating in the ‘new norm’; and the fourth is to increase consumer and investor confidence,” he said.

Movement curbs announced in March to curb Covid-19 transmission has seen the economy take a beating as people are confined to their homes, and businesses unable to operate at full capacity.

Economists have said the MCO cost the Malaysian economy RM2.4 billion a day.

This latest package comes after three stimulus plans totalling RM260 billion to cushion the economic impact of the pandemic.

Muhyiddin said the previous stimulus packages have helped save more than 2.4 million jobs in Malaysia.

He added the previous packages also helped reduce cash outflow for almost 11 million people.

“The economic stimulus packages have also helped to support some 300,000 companies,” he said.

The previous Prihatin Rakyat package included bank loan moratoriums, cash aid and loans for businesses. 

Today, Muhyiddin also announced 40 other incentives, inluding tax breaks for new car purchases and e-wallet vouchers.

A wage subsidy programme will also be extended to that firms can keep people employed and another scheme to help rehire those who had lost their jobs and unemployed youth, he said.

The package will also include grants for micro and small businesses, and schemes to help them leverage digital technology to sell products and services online.

“Vulnerable groups such as the disabled and single mothers will also receive one-off aid of RM300 that will be given out before Hari Raya Aidil Adha.  

“Tax breaks were also given out to encourage foreign firms to relocate their operations to Malaysia,” said the prime minister.

He said the government will offer zero tax for 15 years for new investments in manufacturing and fixed assets of RM500 million and above.

He said the government will also give grants to operators of children’s nurseries to ensure compliance with stipulated SOPs.

At the same time, there will also be a full tourism tax exemption from July 1, 2020 until June 30, 2021.

The government will also re-introduce Home Ownership Campaign to stimulate the real estate market. – June 5, 2020.