[UPDATED] Govt launches RM20 bil ‘empowering’ package for economy, public

KUALA LUMPUR – The government has outlined 20 initiatives under five strategic focuses in its Strategic Programme to Empower the People and Economy (Pemerkasa) package worth RM20 billion, including a new RM11 billion fiscal injection.

Prime Minister Tan Sri Muhyiddin Yassin in a speech today said Pemerkasa’s initiatives are expected to boost economic growth, support businesses and assist the public and sectors affected by the Covid-19 pandemic and economic downturn.

“Currently, the country is in the fifth stage of the 6R (resolve, resilience, restart, recovery, revitalise and reform) Comprehensive Economic Recovery Plan, which is revitalising the economy. At this stage, the focus is on efforts to jump-start the economy.

“Therefore, the government has identified five main focuses, which is to curb the spread of Covid-19, boost economic recovery and transform the economy, strengthen Malaysia’s competitiveness, and implement community inclusiveness.”

The first focus – curbing the spread of Covid-19 – contains three initiatives: the National Covid-19 Immunisation Programme, end blanketed movement control orders (MCOs) and carry out stricter law enforcement.

Muhyiddin said the government will increase funds for the national inoculation drive to RM5 billion from RM3 billion to speed up vaccinations for targeted clusters to December, instead of the earlier target of the first quarter of next year.

To achieve this, 15,000 personnel will be stationed at nearly 950 vaccination centres nationwide, he added.

“The government will also implement a more targeted approach on Covid-19 outbreaks based on science and data to reduce the negative impact on economic activity.

“At the same time, taking the immunisation programme into consideration, it may no longer impose blanket MCOs on states or the country.

“Instead, movement restrictions will be implemented based on localities and focus on related clusters.”

The second focus, which is to boost the economy, contains six initiatives.

Under the first initiative, Putrajaya will increase small-scale projects for the grassroots, with an additional allocation of RM2.5 billion, increasing the current funds to a total of RM5 billion.

The second initiative will see a continuation of the Geran Khas Prihatin 3.0, where small and medium enterprises (SMEs) – or micro industries – that did not receive any assistance will be eligible for a RM1,000 aid.

Under the third initiative, the government will add an extra RM500 million for microcredit schemes via programmes under BSN, Tekun, Mara and SME Corp.

The fourth initiative aims to aid those who have lost their income or have been rendered jobless.

“The government has allocated RM300 million to benefit 60,000 workers, where each worker will receive RM600 a month for a maximum of six months,” the Pagoh MP said.

“Employers who have registered with the Social Security Organisation, and offer short-term work or a platform for gig service providers, will receive RM200 for each worker they employ.”

The fifth initiative will see Putrajaya boost retail and tourism sectors via various tax exemptions and a one-off RM3,000 aid for more than 5,000 agencies registered with the Tourism, Arts and Culture Ministry.

Around 4,000 homestay owners will also receive a one-off cash aid of RM600.

The sixth initiative will see the government reduce the burden borne by companies and cooperatives.

Pemerkasa’s third focus – to strengthen Malaysia’s competitiveness – has five initiatives, namely through automation and digitalisation, by reducing the digital divide, encouraging investments and exports, as well as promoting sustainable financing.

Its fourth focus sees a promotion on the government’s inclusiveness agenda, where it will assist those who have lost their income with an allocation of RM1.2 billion expected to benefit 2.4 million recipients, as well as help the urban poor, women, the disabled, youth, and continue its cost of living subsidies. – The Vibes, March 17, 2021