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KUALA LUMPUR (May 14): Malaysia’s economy registered its slowest growth in a decade to start the year, and the second quarter is expected to be even more difficult. The largest set of stimulus measures in Southeast Asia will be tested to keep the economy afloat.
The government has presented incentives worth RM260 billion (US $ 60 billion), more than 17% of gross domestic product, to reduce job losses and ensure that small businesses can continue to operate amid the coronavirus pandemic .
Bank Negara Malaysia expects the economy to contract in the second quarter as industries suffer the brunt of a blockade that started on March 18 and will end on June 9. Stimulus measures and a gradual lifting of the blockade will make activity improve in the second half of the year, leading to positive growth in 2021, the central bank said on Wednesday.
Here are some numbers that show how incentives flow through the economy:
33%
The proportion of Malaysians, including the poorest 40% and singles, who have received government cash donations totaling RM11 billion as of May 10
1.9 million
The number of workers who have benefited from a wage subsidy, of which RM2.1 billion has been disbursed, to help employers pay wages despite restrictions on economic activity.
RM10 billion
Negara Malaysia Bank’s allocation for a low-interest credit line for small businesses, which increased from RM2 billion due to demand. Participating banks approved 20,000 applications
3.7 million
The number of people who have withdrawn a total of RM1.76 billion from their state pensions. Many people have accepted the offer to reduce their monthly retirement contributions, leaving in their hands an additional RM954.7 million in funds.
RM100 billion
The amount of benefits borrowers must obtain from a six-month moratorium to repay bank loans, the most important component of the stimulus package. Reaction against the measure was fueled by confusion over whether interest would accrue on deferred payments
