The Covid-19 Government Prihatin Rakyat Economic Stimulus Package

(announced on March 27, 2020 and updated on April 06, 2020)

Covid-19 RM10bil Government Assistance & Aid for SMEs

announced on April 06, 2020

In addition to the RM250bil economic stimulus package announced on March 27, 2020, the government unveiled a new RM10bil stimulus package to aid SMEs' cashflow.

To support the delivery of the Prihatin initiative, the IMSME.com.my portal operated by Credit Guarantee Corporation (CGC) with the support of Bank Negara Malaysia (BNM) is ready to accept the small and medium enterprises (SME) loan applications.

Go to IMSME.com.my portal >

Wage subsidy programme

The government will increase the wage subsidy of monthly RM600per worker in accordance with the size of the company.

  • RM600 for companies with up to 200 pax (previously limited to 100 pax)

  • RM800  for companies with 76 to 200 pax

  • RM1200 for companies with up to 75 pax

Condition to retain workers for at least 6 months

Prihatin Special SME Grant

A RM2.1bil Prihatin Special Grant for all SME companies that qualify.

  • a Special Grant of RM3,000 to each company, and is expected to benefit nearly 700,000 micro SMEs nationwide.

  • The SMEs must register with the Inland Revenue Board (IRB) to enjoy this facility. The Government will obtain a list of eligible SMEs from the Local Authorities and Companies Commission of Malaysia (SSM).

Micro Credit Schemes

  • Abolish the 2% interest rate for the Micro Credit Scheme under Bank Simpanan Nasional.

  • The National Entrepreneur Group Economic Fund (Tekun Nasional) will also offer RM200 million in microloans with a maximum loan limit of RM10,000 per company at no interest. 

Negotiable Terms of Employment

  • The government has agreed to encourage negotiations between employers and employees on the terms of their employment, including the option to deduct salaries, and to allow unpaid leave during the MCO.

  • Employers and employees can refer to the Labour Department to obtain advise in regards to any problems arising from a resolution. Negotiations have to be based on employment laws of the country.

Discount on Foreign workers' permit

Discount on foreign workers' permit.

 

Tax deduction for private premise owners to reduce rental

  • The government has appealed to owners of private premises to reduce rental rates for to SMEs during the MCO and three months after it ends.

  • They will be given additional tax deductions equal to the amount of rent reduction from April to June. This is subject to the condition that they reduce the rental by at least 30% during that period.

Auto moratorium for statutory documents submission

  • The government has granted an automatic moratorium of 30 days to allow companies to submit statutory documents to the Companies Commission of Malaysia (SSM) from the last date of the MCO.

  • * The filing of the companies financial statements is also extended for three months from the last date of the MCO. The flexibility is given to companies with financial years ending Sept 30 until Dec 31. Companies will have to apply for this flexibility from SSM and no late charges will be charged.

The Covid-19 Government Prihatin Rakyat Economic Stimulus Package
(announced on March 27, 2020)

 

Ministry of Finance Prihatin Website >

https://pre2020.treasury.gov.my/en/

Summary

Prime Minister Tan Sri Muhyiddin Yassin announced a RM250 billion People-Centric Economic Stimulus package (Prihatin) which will benefit all segments of the society.

  • RM128 billion for the people’s welfare

  • RM100 billion to support businesses, including Small and Medium Enterprises (SMEs)

  • RM20 billion has been announced in the earlier stimulus package

Healthcare Aid

  • RM500 million allocation for the Health Ministry to ramp up its resources. 

  • RM1 billion will be allocated to the purchase of equipment and services to combat Covid-19

 

  • RM2 billion to strengthening the country's economy

  • RM10 billion cash aid for the lower-income B40 and middle-income M40 groups

RM20 billion has been announced in the earlier stimulus package

Announced on March 23.2020

  • RM130mil will be distributed equally to all states 

  • RM600mil for the Health Ministry for the purchase of equipment and to hire contract staff

  • Employees Provident Fund contributors aged below 55, can withdraw RM500 for up to 12 months.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Cash-Aid
(announced on March 27, 2020)
Still updating.....

A. Bantuan Prihatan Nasional

Bantuan Prihatin Nasional, a one-off cash assistance with an allocation of RM10 billion

A total allocation of RM10 billion to give a one-off cash payment to B40 & M40 households, self-employed workers, employees in the private sector, FELDA settlers, farmers, fishermen and small traders who earn less than RM8,000 a month.

The amount of cash-aid to be distributed will be in accordance with the recipient's income level.

Households

  • RM1,600 for households earning RM4,000 and below (1st payment = RM1,000; 2nd payment = RM600)

  • RM1,000 for households earning RM4,001 – RM8,000 (1st payment = RM500; 2nd payment = RM500)

 

Single individuals 21 years and above

  • RM800 to single individuals earning RM2,000 and below (1st payment = RM500; 2nd payment = RM500)

  • RM500 to single individuals earning RM2,001 - RM4,000 (1st payment = RM250; 2nd payment = RM250)

 

Students

RM200 per student in higher education.

 

Payment

The aids will be paid in two tranches: the first will be paid out in April, and the second round in May

B.Cash-Aid for Other Individuals

Bantuan Sara Hidup (BSH)

The balance of the ongoing Bantuan Sara Hidup (BSH) payments amounting to RM3.2 billion will be paid out in July.

Frontliners Allowance

  • The monthly special allowance of RM400 for doctors, nurses, and medical personnel will now be increased to RM600 per person, starting from 1 April 2020 until the end of the pandemic. 

  • Monthly RM200 special allowance a month for other front liners namely military, police, customs, civil defence and RELA members who are directly involved in enforcing the MCO. This allowance will also be paid beginning 1 April 2020 until the COVID-19 outbreak ends.

E-hailing drivers

RM500 one-off payment to 120,000 e-hailing drivers beginning April 1. This is in addition to the RM600 one-off aid announced for taxi drivers that was announced in the previous stimulus package.

Civil servants

  • RM500 one-off payment to 1.5 million civil servants of grade 56 and below, including contract workers. The payment will be made in April 2020.

  • RM500 one-off payment to 850,000 government pensioners. The payment will be made in April 2020.

C. Wage Subsidy Programme 

Workers of Government contractors

Govt will pay the salaries borne by contractors involved in the service sector, such as cleaning services and supply of cooked food in government agencies.

Workers of Affected Businesses

Wage subsidy of RM600 a month for three months for employers with a 50% drop in business since Jan 1, for workers with a salary of below RM4,000.

D. Aid to NGOs

RM25 million to NGOs and social entrepreneurs to provide food assistance, healthcare and shelter to vulnerable groups such as the elderly and children in shelters, the disabled, the homeless and orang asal.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Increase Disposable Income
(announced on March 27, 2020)
Still updating.....

  • I-Lestari Programme, Employees Provident Fund (EPF) allows members to apply for the i-Lestari Account 2 Withdrawal Scheme to with upto RM500 amonth beginning 1 April 2020. I-Lestari Programme FAQ >

  • Investees in Private Retirement Scheme (PRS) are allowed pre- retirement withdrawals from account B up to RM1,500 per member without any tax penalties between April and December 2020.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Housing & Utility Subsidies
(announced on March 27, 2020)
Still updating.....

  • Exemption of rental payment for Projek Perumahan Rakyat (PPR) and Perumahan Awam for six months.

  • The rent-to-own (RTO) PPR units a 6-month rent moratorium effective April 2020.

  • Free Internet from April onwards until the end of MCO

  • A tiered-discount based on electricity usage with a maximum limit of 600 kilowatt per month for the tourism sector. This discount will be valid for 6 months beginning with bills charged for the month of April 2020. 

    • 50% for below 200 kilowatts;

    • 25% for consumption between 201 – 300 kilowatts; 

    • 15% for 301 – 600 kilowatts.

 

  • 2% discount domestic consumers

  • Tenaga Nasional Bhd (TNB) has pledged RM150 million to enhance government announced discounts.

    • 50% for below 200kWh

    • 50% for 201 - 300kWh

    • 15% for 301 - 600kWh

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Healthcare & Medical Aid
(announced on March 27, 2020)
Still updating.....

For Individuals

  • Insurance and takaful companies will set a RM8mil fund to bear Covid-190 screening test costs of up to RM300 each for policyholders.

  • Family takaful and insurance companies will offer a 3-month suspension on premiums by contributors whose source of income is affected by the pandemic.

  • mySalam COVID- 19 hospitalised patients and B40 patients quarantined and under investigation (PUI) can claim an income replacement fee of RM50 per day for a maximum of 14 days.

For Ministry of Health

  • RM500 million allocation for the Health Ministry to ramp up its resources. 

  • RM1 billion will be allocated to the purchase of equipment and services to combat Covid-19

Frontliners Allowance

The monthly special allowance of RM400 for doctors, nurses, and medical personnel will now be increased to RM600 per person, starting from 1 April 2020 until the end of the pandemic. 

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Business Aid
(announced on March 27, 2020)
Still updating.....

  • A 6-month lease exemption on all premises owned by the Federal Government such as school canteens, nurseries, cafeterias, convenience stores and others. This includes all premises owned by agencies and statutory bodies of the Federal Government. 

  • Wage Subsidy Programme to assist employers in retaining their workers. RM600 per month salary replacement for 3 months to every employee earning less than RM4,000 and employers experiencing more than 50% decrease in their income since 1 January 2020. Employers must ensure that there is no retrenchment or imposing unpaid leave or forcing a wage cut for the next 3 months after the implementation of the programme. 

Ease cash-flow constraints for Businesses

  • The EPF will introduce the Employer Advisory Services (EAS) programme on 15 April 2020. This service includes options for deferral of payments, restructuring and rescheduling of employer contributions. 

  • Exempt payment for Human Resources Development Fund (HRDF) levy for all sectors for a period of six months beginning April 2020. 

  • Allow the postponement of income tax instalment payments to all SMEs for a period of 3 months beginning 1 April 2020. This is in addition to the previously announced measures where the Government has postponed tax instalment payments to affected businesses in the tourism sector for 6 months beginning 1 April 2020. For other affected sectors, they are also allowed to revise the amount of income tax imposed in the third, sixth and ninth instalments during the basic accounting period.

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Loans and Financing
(announced on March 27, 2020)
Still updating.....

  • Banking institutions to offer a 6-month moratorium, conversion of credit card balance to term loans and restructuring of corporate loans.

  • The moratorium will be extended to loans from TEKUN, MARA and cooperatives as well as other government agencies providing financing to SMEs beginning 1 April 2020.

Govt and BNM will set additional allocation of RM4.5bil for SME and micro-entrepreneurs which will comprise of five initiatives.

  1. Increase funds to the Special Relief Facility (SRF) for SMEs by RM3 billion to RM5 billion. In addition, the interest rate for the entire fund will be reduced from 3.75% to 3.5%.

  2. Increase the size of the All Economic Sector Facility fund by RM1 billion to RM6.8 billion to enhance access to financing for SMEs.

  3. Provide additional funds of RM500 million under the Micro Credit Scheme, to a total of RM700 million for soft loans. The scheme will be administered by Bank Simpanan Nasional at 2% interest rate with no collateral. Loan eligibility requirements are also relaxed to a minimum of 6 months of operation compared to 1 year of operation. Maximum financing amount is also increased from RM50,000 to RM75,000 for each entrepreneur. The initiative is open to all micro-entrepreneurs in all business sectors including child-care centres, taxi and bus operators as well as the creative industry and online traders.

  4. SMEs with business records of less than 4 years can also leverage the BizMula-i and BizWanita-i schemes for financing up to RM300,000 under the Credit Guarantee Malaysia Berhad (CGC).

  5. Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will provide RM5 billion worth of guarantees and increase the guarantee coverage from 70% to 80% for SMEs that face difficulties in obtaining loans.

 

Loan Deferment

  • PTPTN loan repayment for all borrowers for 6 months. This initiative involves a sum of RM750 million.

  • Skills Development Fund Corporation (PTPK) borrowers for the same period beginning 1 April 2020 to 30 September 2020.

Social Financing Programme

Social financing programme for B40 entrepreneurs and people who lose their jobs. The programme will be a collaboration with Islamic banking institutions, the state Islamic religious council and key implementing partners. Social donations will be channelled in the form of initial capital for micro-entrepreneurs using zakat funds and matched with microfinancing at affordable rates.

The first phase of the collaboration between Bank Islam Malaysia Berhad and the Federal Territory Islamic Religious Council will commence in May 2020. Eligible entrepreneurs will be given training in entrepreneurship and financial management as well as support to develop their businesses.

Government Guarantees for Corporate Loans

The Government will provide a RM50 billion guarantee scheme with a guarantee of up to 80% of the loan amount for the purpose of financing working capital requirements. The scheme will be managed and subject to credit evaluation by Danajamin. The facility is targeted at viable businesses in all sectors facing difficulties due to the COVID-19 outbreak.

The minimum guaranteed loan size is RM20 million per business. This facility will be available for application from 1 May to 31 December 2020 or until the fund is fully utilised. 

Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Food Security
(announced on March 27, 2020)
Still updating.....

  • RM1 billion for Food Security Fund.

  • Assistance to farmers and fishermen, including agricultural inputs to increase domestic production.

  • RM100 million for the development of infrastructure for food storage and distribution as well as crop integration programme.

  • Special funds of between RM100,000 and RM200,000 to each viable Pertubuhan Peladang Kawasan (PPK) and Pertubuhan Nelayan Kawasan (PNK) to develop short-term agro-food projects that can generate income within 3 to 6 months, ensuring sufficient food supply. The measure involves an allocation of RM64.4 million.

Contacts

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In the News Snippets & Links 

Covid-19 Malaysian Government Assistance & Aid

PRIHATIN Economic Stimulus Package

(announced on March 27, 2020)

PM's full speech on Prihatin Economic Stimulus Package

What follows is the full text of the speech by Prime Minister Tan Sri Muhyiddin Yassin who announced details of the Prihatin Rakyat Economic Stimulus Package on Friday.|Read more >|NST

TM outlines initiatives supporting Prihatin

Telekom Malaysia Bhd has put in place various initiatives in support of Prihatin Rakyat economic stimulus package (Prihatin) and the nation – for customers, employees and those in need throughout the extended Movement Control Period (MCO) period.|Read more >|NST

Under Wage Subsidy Programme, employers cannot lay off workers

The Human Resources Ministry, through the Social Security Organisation (Socso), will implement a Wage Subsidy Programme to safeguard the welfare of employers and employees.|Read more >|NST

Azmin: Putrajaya has database to quickly deliver assistance for B40, SMEs but not much data on M40

The federal government is confident that it can push out the various financial assistance under the RM250 billion Covid-19 stimulus care package to the B40 and small and medium enterprises (SMEs) in a speedy manner.|Read more >Malaymail

 

PM: Nine million Malaysians eligible for BPN cash payment

About nine million Malaysians will receive a one-off cash payment under the Bantuan Prihatin National (BPN) scheme as part of the Prihatin Rakyat Economic Stimulus Package.|Read more >|NST

Electricity rebates: TNB pledges another RM150mil

Tenaga Nasional Bhd (TNB) has pledged RM150 million to support the government’s announcement on tiered electricity rebate to assist Malaysians hit by the economic slowdown following the extension of the Movement Control Order (MCO).|Read more >|NST

Income replacement benefit extended to PUI from B40 group

The government has extended the benefit for income replacement to the B40 group quarantined as patient under investigation (PUI) under the Prihatin Rakyat Economic Stimulus Package.|Read more >|NST

PM announces RM250b stimulus package

Prime Minister Tan Sri Muhyiddin Yassin today announced a RM250 billion injection with the objective of protecting the people, supporting businesses and strengthening the economy to weather the effects of the Covid-19 pandemic.|Read more >|SunDaily

'Prihatin Rakyat' package: RM10b set aside for one-off payments to various groups

Lower income (B40) and middle-income (M40) families are set to receive cash handouts totalling RM10 billion in the recently announced People-Centric Economic Stimulus package (Prihatin) by Prime Minister Tan Sri Muhyiddin Yassin today.|Read more >Malaymail

6-month rental waiver for PPR residents

People's Housing Project (PPR) residents and federal government-owned premises, including school canteens, nurseries, cafes, and convenience stores are entitled to a six-month rental waiver.|Read more >|NST

Muhyiddin unveils RM250bil economic stimulus package

Prime Minister Tan Sri Muhyiddin Yassin has on Friday (March 27) unveiled an economic stimulus package known as package prihatin or caring package valued at RM250bil that will benefit all Malaysians.|Read more >|TheStar

Stimulus package: RM1,600 to almost 4 million household with income of RM4,000 and below

Prime Minister Tan Sri Muhyiddin Yassin (pix) today announced a RM250 billion stimulus package that promises to ensure that everyone from the M40 to the poor and needy will receive monetary assistance from the government.|Read more >|SunDaily

Government allocates RM5.9b in salary subsidies to prevent retrenchment

The federal government will introduce a Salary Subsidy Programme to assist employers retain their workers.|Read more >Malaymail

PM: Free internet and additional electricity discounts throughout MCO

Free internet will be offered to all existing consumers under the economic stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin today.|Read more >Malaymail

 

RM25 million set aside for vulnerable groups

The government has set aside RM25 million under the Prihatin Rakyat Economic Stimulus Package (Prihatin) to help people who are vulnerable to the adverse impact of Covid-19 towards the economy of the country.|Read more >|NST

Higher Education students to receive one-off RM200 each

Higher Education students will receive a one-off payment of RM200 each as part of the Prihatin Rakyat Economic Stimulus Package announced to cushion the economic impact of the Covid-19 outbreak.|Read more >|NST

PM: SMEs get RM4.5b in credit to stem Covid-19 fallout

Small and medium enterprises, including microbusinesses, will receive an additional RM4.5 billion in credit to help stem the fallout from Covid-19, the government announced today.|Read more >Malaymail

 

PM: Nine million Malaysians eligible for BPN cash payment

About nine million Malaysians will receive a one-off cash payment under the Bantuan Prihatin National (BPN) scheme as part of the Prihatin Rakyat Economic Stimulus Package.|Read more >|NST

Health Ministry gets extra RM1bil allocation under stimulus package

The government has announced an additional RM1 billion allocation for the Health Ministry (MoH) as part of the Prihatin Rakyat Economic Stimulus Package.|Read more >|NST

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