Prime Minister Muhyiddin Yassin just announced a new stimulus package, a short-term economic recovery plan (ERP) titled “Pelan Jana Semula Ekonomi Negara” or PENJANA to help the economy recover from the impact of Covid-19 and the subsequent movement control order (MCO).
He unveiled RM 35 billion stimulus package that established with three main goals – to empower the people, propel businesses and stimulate the economy. Under this package, there are 40 initiatives covering all these three goals.
There are 40 initiatives under PENJANA emphasising SMEs
The ERP will emphasis on supporting workers and small and medium-sized enterprises (SMEs) through training programmes, social support, financing schemes, boosting domestic consumption and supporting industries affected by the Covid-19 and MCO.
Some of the main points mentioned under PENJANA are:
- Government has allocated RM 9 billion to benefit three million workers in dealing with unemployment.
- Wages Subsidy Programme to help employers extended three more months.
- The govt’s Economic Stimulus Package saved 2.4 million jobs.
- RM1.5 billion for hiring incentives which is expected to benefit some 300,000 through two incentives: RM800 a month for each worker under the age of 40 hired and RM1,000 a month for workers above the age of 40 or those who are special needs which will be provided for 6 months.
- Those who have lost their jobs can claim training allowances of up to RM 4,000 under SOCSO even if they do not contribute to the Employment Insurance System (EIS).
- Incentives of RM 600 a month will be given to employers who provide apprenticeships to fresh graduates.
- Government will also allocated RM 2 billion for upskilling programmes for the youth and unemployed.
- In an effort to encourage the field of freelancing, MDeC will allocate RM25 mln for the Global Online Workforce (GLOW) programme.
- Govt allocating RM75 million to help the GIG economy.
- Government would also allocate RM 50 million in matching grants for companies in the gig economy to make SOCSO and EPF contributions for their workers.
- Government will form the National Recruitment Task Force to be jointly chaired by the Finance and Human Resources Ministers.
- Tax exemptions of up to RM5,000 for workers who get a tablet, computer or smartphone from their employers.
- For SMEs and mid-tier companies, the government will continue to give out grants and loans to eligible companies
3. Transport, OKU and single mothers
- 300,000 disabled people (OKU), single mothers registered with Welfare Dept eligible to receive a one-off payment of RM300 each before Aidiladha.
- Government will also introduce the MY30 initiative where people pay RM30 a month or RM1 a day for an unlimited travel pass under Prasarana in the Klang Valley.
- Govt introducing Shop Malaysia Online campaign to encourage spending via e-commerce platforms.
- RM 70 million will also be allocated for matching grants.
- RM 700 million to help SMEs digitalise their operations.
- Full tourism tax exemption from July 1, 2020 until June 30, 2021
- The tax incentive for investments by foreign companies is applicable if the company relocates and commences operations within 1 year after receiving the approval and the investment must be made within three years
- To attract foreign investments, the gov’t will offer zero tax for 15 years for new investments in manufacturing and fixed assets of RM 500 mln and above
- The government approves zero percent tax for 10 years for new investments in the manufacturing sector with investments in fixed assets of RM 300 million-RM 500 million
- The gov’t is giving 100 pct tax exemption on sales of locally assembled passenger cars, 50 pct for imported passenger cars from June 15 to Dec 31, 2020
- Smart Automation Grant allocated RM100 million, eligible company to receive grant up to RM1 million
- RM1 billion tourism financing scheme to assist the tourism sector.
- Home Ownership Campaign will be re-introduced to stimulate real estate market
- Gov’t to implement skills upgrading programmes in key industries such as electrical and electronics and ICT
- Government will introduce “GLC Penjana Komuniti” which will see GLCs “adopting” a community and developing its socio-economic capabilities.
- Peka B40 scheme would also be enhanced with an additional RM 50 million for health screenings and new equipment.
- Telcos will also provide internet connectivity with speeds of up to 1 GB capacity free of charge each day from 8am to 6pm until the end of the year for purposes related to education and teleconferencing.