Malaysia Covid-19 Government Assistance for the Economy

Summary of Government Initiatives to Spur the Malaysian Economy

Expediting investment projects, security and infrastructures

Additional RM2 billion for the immediate implementation of small infrastructure repair and upgrading projects nationwide especially in rural areas.

The Employee Insurance Scheme (EIS) will increase the claimable training cost from RM4,000 to RM6,000 for the affected sectors. A daily training allowance of RM30 per day will also be provided to trainees under EIS.

BNM to provide agrofood facility of RM1 billion at an interest cost of 3.75 per cent to promote food production activities to meet domestic and export demand.

RM10 million allocation to the Federal Agricultural Marketing Authority (FAMA) to provide food storage facilities to help reduce food prices.

Allocation of RM20 million to Malaysia Digital Economy Corporation (MDEC) for Perkhidmatan e- Dagang Setempat (PeDAS) programme to transform Rural Internet Centres into e-commerce hubs.

Government-linked companies such as Tenaga Nasional Bhd to invest RM13 billion in 2020, including accelerating projects such as LED street lights, transmission lines and rooftop solar installations.

The Malaysian Communications and Multimedia Commission to implement up to RM3 billion on works related to the National Fiberisation and Connectivity Plan.            

The Covid-19 Government Economic Stimulus Package for
The Economy in General
(announced on February 27, 2020)

 

New Fund Allocation to Spur Economic Activities through Small-scale Projects

The small-scale projects to be implemented are as follows:
i) RM350 million through state governments to
undertake public infrastructure maintenance (PIA) and basic infrastructure (PIAS) projects as well as Rural Basic Infrastructures (RBI) projects;
ii) RM250 million to the Ministry of Works for federal road maintenance jobs, implemented by new contractors via open tender called by concessionaires and government agencies, where the cost of project will be based on the standard rate agreed in the concessionaire’s agreement. On top of that, another RM50 million also will be allocated for slope maintenance;
iii) RM100 million to the Ministry of Education to ensure the cleanliness of schools and promote health and personal hygiene of students. The allocation will include initiatives undertaken in partnership with the Parent Teacher Association (PTA) involvements through gotong-royong concept. Another RM100 million to be allocated for schools' hostel facilities include furniture and equipment;

iv) RM150 million to the Ministry of Housing and
Local Authorities, to be channelled to all local authorities to undertake maintenance of local public infrastructure, including ensuring upkeep of tourist sites;
v) Repair and maintenance of housing and public amenities in FELDA areas with an allocation amounting to RM200 million;
vi) RM150 million to the Ministry of Rural Development to undertake the repair of rural connection roads and also
maintenance of rural infrastructure relating to alternative water and electricity supply;
vii) RM100 million to undertake repair and maintenance works at low-cost flats, including repainting and maintenance of lifts. This is to help ensure residents of low-cost housing enjoy a clean and safe environment;
viii) RM50 million to MARA to undertake refurbishment of business premises which will benefit business facilities for
Bumiputera Entrepreneur, particularly for rural small traders. The upkeep for business premises includes replacing pipes, electrical and repainting jobs;
ix) RM25 million to undertake social projects to improve the quality of life for poor families and disadvantaged communities. The allocation will be also utilised on a matching grant basis to undertake projects such as improving livelihoods through income generation
programmes and enhancing the quality of life such as providing alternative water projects. This is to promote volunteerism and collaboration with NGOs and social enterprises;
x) RM25 million to undertake maintenance of facilities at KEMAS centres to ensure that our children have a comfortable environment to learn;

xi) RM50 million for repair and maintenance of jetties,
irrigation feeder/plantation roads and MAQIS equipment;
xii) RM50 million to maintain retention pond, upgrade and maintenance of bund, riverbanks and rivers nationwide;
xiii) TRM50 million for maintenance of Armed Forces Family Housing (RKAT)/ government quarters and government buildings;
xiv) RM75 million to organise sport events, upgrade and maintenance of sports facilities nationwide;
xv) RM40 million for maintenance of buildings under the Asset Management Division of Prime Minister’s Department; and
xvi) RM185 million for Mesra Rakyat projects.

The Covid-19 Government Economic Stimulus Package for
Investments
(announced on February 27, 2020)

STRATEGY III: PROMOTING QUALITY INVESTMENTS

24. To bolster business confidence, the Government is committed to sustaining public investments and in particular, expedite in 2020, the tenders and implementation of development expenditure projects.

25. In addition, agencies and Government linked companies (GLCs) will also accelerate planned investment projects for 2020, including:

First: Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) will open for bids quota of 1,400MW for solar power generation. This is expected to involve RM5 billion of private investments and generate 25,000 jobs;

Second: Malaysian Communications and Multimedia Commission (MCMC) will implement up to RM3 billion on works related to the National Fiberisation and Connectivity Plan (NFCP); and

Third: GLCs such as TNB will invest RM13 billion in 2020, including accelerating projects such as LED street lights, transmission lines and rooftop solar installations.

26. To enhance greater national competitiveness, the Government will promote higher value-added private sector investments through:

First: A Co-Investment fund of RM500 million to be coinvested and matched by private investors on a ratio of at least 1 to 3 which will make the total funds amount to RM2 billion for investment in early-stage and growth-stage Malaysian companies;

Second: waiving of the listing fees by Securities Commission and Bursa Malaysia for one year, for companies seeking listing on Leading Entrepreneur Accelerator Platform (LEAP) or Access, Certainty, Efficiency (ACE) markets, as well as companies with market capitalisation of less than RM500 million seeking listing on the Main Market;

Third: BNM will provide an SME Automation & Digitalization Facility of RM300 million at an interest cost of 3.75%;

Fourth: the Government will provide accelerated capital allowances over a two-year period on expenses incurred on machinery and equipment including ICT;

Fifth: The government will provide a tax deduction of up to RM300,000 on renovation and refurbishment cost; and

Sixth: Import duty and sales tax exemption on importation or local purchase of machinery and equipment used in port operations for 3 years commencing 1 April 2020.

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