Following the extension of the Phase 1 (previously known as FMCO), the Prime Minister Tan Sri Muhyiddin Yassin had unveiled the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih) financial aid to help the citizens and businesses who were affected under by the Covid-19 pandemic.
The financial aid was worth RM150 billion and it is the largest package since the RM250 billion Prihatin package announced in March last year when Malaysia went into the first Movement Control Order (MCO).
In addition, the government will be providing a total amount of RM10 billion direct fiscal injection.
Here are the highlights:
- A RM500 for Bantuan Prihatin Rakyat (BPR) for those eligible for the month of July with payments to be made from June 29. The third phase of the BPR between RM100 and RM1,400 will be paid in September as well as payments for those with successful appeals.
- Social Security Organisation (SOCSO) will be expanded to all non-contributors, especially new graduates and informal sectors. They can register at MYFutureJobs and will receive an allowance of at least RM300.
- Bantuan Khas Covid-19 (BKC) initiative will be available for the following groups.
i) Households of hardcore poor will receive RM500 in August, RM500 in November, and RM300 in December. Singles from this category will receive RM200 in August and RM300 in November.
ii) B40 households will receive RM500 in August and RM300 in December. Singles from this category will receive RM200 in August.
iii) M40 households will receive RM250 while singles in this category will receive RM100 in August.
- RM10 million will be spent on food basket for the citizens, especially for the Orang Asli.
- RM1 billion will be spent on subsidizing the 1kg polybags of cooking oil so that the price remains at RM2.50.
- RM15 million will be allocated to non-governmental organisations (NGO) to help combat social issues such as mental health, homelessness, and others.
- RM6 billion to be spent on subsidizing to maintain the retail price for RON95 petrol, diesel and LPG.
- Cooking oil bottles of 1kg to 5kg will have their prices controlled based on the threshold value of crude palm oil.
- A discount on electricity bills of between 5% and 40% up to a maximum usage of 900 kilowatt-hours (kWH) a month will be given. This includes a 40% discount for usage that is below 200kWH, and 15% discount for usage that is between 201kWH and 300kWH. It is expected to help the citizens to save up to RM346 million over the 3 months starting July.
- Hotel operators, theme park operators, convention centres, shopping malls and tour operators will be given a 3 month extension of electricity bill discount of 10% from October to December.
- The 1GB daily free data will be extended to the end of this year. This initiative is estimated to worth RM500 million and will benefit 44 million registered users in the country.
- Eligible recipients under the Prihatin Special Grant (GKP) 3.0 will receive an additional RM500 and is expected to be paid mid July this year.
- An additional payment of RM500 under GKP 4.0 to eligible recipients which will be paid in September and another RM500 in November this year.
- 30 units of mobile banks will start operate through the nation and is expected to cover 250 rural localities. This initiative will facilitate the ease of access to banking service. The services include opening of accounts, savings, withdrawal and transfer of money, bill payments as well as digital banking.
- The Wage Subsidy Scheme will be continued for the 4th time where the government will support up to 500 workers per employer with assistance of RM600 per worker for 4 months. This will be 2 months for every sector in the 2nd phase of the National Recovery Plan, and another 2 months for the sectors categorised as negative in the 3rd phase of the NRP. Nonetheless, there are no salary limit conditions this time.
- HRD levy will be exempted for 2 months if the employer were unable to operate during the lockdown.
- Employers from new sectors as a result of the expansion of the Human Resources Development Fund Act 2001 will be given a levy extension under Dec 2021. This initiative is estimated to be worth RM425mil.
- PenjanaKerjaya programme will be extended with several improvements. This includes reducing the salary eligibility limit from RM1,500 to RM1,200 ringgit for the “Malaysianisation” programme to give more incentives to employers to replace foreign workers with local workers. The employment contract period will also be reduced from 12 months to 6 months for employees aged 50 and above, the disabled and former prisoners.
- A new EPF withdrawal facility called i-Citra will allow EPF members to withdraw up to RM5,000 with a fixed payment rate of RM1,000 per month for 5 months, subject to the member’s total EPF savings. Members can start applying for the facility on the i-Citra online portal at icitra.kwsp.gov.my starting 15 July, and the first payment is expected to be paid in August.
- An six-month automatic moratorium for all borrowers, regardless of which income group they are from. Borrowers will only need to apply and approval will be given automatically by the banks. It will be open starting 7 July. They are also required to apply and sign an agreement on the related loan terms.
For the full details of the speech, you can visit the press release from the Prime Minister Office here.