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KUALA LUMPUR: Malaysian Prime Minister Muhyiddin Yassin announced on Monday (January 18) a new financial assistance package worth RM15 billion (US $ 3.7 billion) to mitigate the impact of COVID-19.
In a televised address, Muhyiddin said the package called PERMAI, or Malaysia’s Rakyat Protection and Economic Assistance Package, strengthens current initiatives to help Malaysians cope with the economic impact of COVID-19.
“A total of 22 initiatives will be implemented under PERMAI, and they are based on three main objectives: first, combat the COVID-19 pandemic, second, protect the well-being of people, and third, support business continuity, “said Muhyiddin.
The announcement came as Malaysia struggles to contain its third wave of COVID-19 infections, with daily four-digit increases in cases, bringing the national total to more than 155,000.
The health system is at a breaking point, the prime minister said last week.
READ: Malaysia’s new COVID-19 cases top 4,000 in another record
In his speech on Monday, Muhyiddin said that initiatives under the first goal of combating COVID-19 included the implementation of the country’s COVID-19 vaccination program, the hiring of more workers to strengthen the health system, collaboration with hospitals private and more trials for the first in health care.
For the second objective of protecting the well-being of people, among the initiatives that he highlighted was that assistance will continue to be provided for bank moratorium and reduction of loan payments.
“The moratorium, including the extension of the moratorium and the reduction of loan installments, will be offered by the banks, as previously announced,” Muhyiddin said.
In addition, the period of tax relief for the purchase of mobile phones, computers and tablets, the period of free Internet access by the telecommunications industry and the period of exemption for sales tax on passenger vehicles will be extended, added.
For the third goal of supporting business continuity, the initiatives include one-time cash assistance for taxi drivers and bus drivers, and a special 10% discount on electricity bills from January to March for six business sectors across the country.
THE IMPACT OF THE OLS ON THE ECONOMY IS STILL UNDER CONTROL: MUHYIDDIN
Last Tuesday, the King of Malaysia, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, declared a state of emergency across the country, a day after the prime minister announced that five states, including Penang, Selangor, Melaka, Johor and Sabah, and the federal territories of Kuala Lumpur, Putrajaya and Labuan would again be subject to a two-week movement control order (MCO).
The northern state of Kelantan was placed under MCO restrictions as of Saturday, bringing the total number of affected states to six.
Sarawak is also enforcing an MCO in Sibu, Selangau and Kanowit districts following a spike in new infections in recent days.
The interstate travel ban is in effect across the country through January 26 in an effort to slow the spread of the virus.
A man wears a face mask against the backdrop of the Twin Towers in Kuala Lumpur, Malaysia, on Saturday, January 16, 2021. Malaysian authorities imposed stricter restrictions on movement to try to stop the spread of the COVID-19 coronavirus. (AP Photo / Vincent Thian)
In his speech on Monday, Muhyiddin noted that the implementation of the MCO in certain states and the proclamation of the state of emergency may cause “some frustration among the people and the business community.”
“I would like to emphasize once again that this emergency declaration is aimed simply at curbing the spread of the COVID-19 pandemic, which is now the greatest threat to the socio-economic development of the country,” he said.
“The government will do everything possible to ensure that the impact of these measures on the country’s economic environment is mitigated,” he added.
READ: What you need to know about the state of emergency and the hardening of COVID-19 sidewalks in Malaysia
The prime minister added that the government does not expect an impact similar to that of the second quarter of 2020, as the current MCO has allowed more economic activities to operate.
“There, the impact of the current MCO on the economy is still under control,” he said.
He believed that the economic stimulus packages, the 2021 budget and the PERMAI assistance package will continue to drive consumption.
This latest economic package follows the presentation of an expansive national budget for 2021 in November last year, the largest in the country, aimed at ensuring people’s prosperity, business continuity, and economic resilience amid the COVID pandemic. -19.
Muhyiddin had said the budget was a continuation of the four stimulus packages worth RM305 billion (US $ 73.2 billion) that were announced in 2020.
There was a PRIHATIN complementary initiative package of RM10 billion, which was an extension of the previous economic stimulus packages, namely PRIHATIN, PRIHATIN SME PLUS and PENJANA for a total value of RM295 billion, or about 20% of the nation’s gross domestic product (GDP).
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