KUALA LUMPUR – Malaysia needs a RM45 billion fiscal injection – and not just RM5 billion as part of the RM40 billion Pemerkasa Plus stimulus package announced yesterday – to address the adverse economic impact of the total lockdown to curb Covid-19.
The Pakatan Harapan presidential council, slamming the sum announced by the government, said RM45 billion is a more appropriate amount to help the rakyat see through this challenging period.
“A preliminary RM45 billion financial aid package for the total lockdown under MCO 3.0 (third movement control order) is not huge when compared with the RM340 billion spent under MCO 1.0 and MCO 2.0.”
PH suggested a monthly welfare payment of RM1,000 until year-end for the B40 and M40 groups, as well as the unemployed, which would cost RM7 billion.
In a statement today, it said Perikatan Nasional needs to be bolder when it comes to spending so as to pull the economy out of recession, especially with the lockdown expected to cost Malaysia around RM2.4 billion a day.
At this rate, the economic losses are estimated to be at least RM60 billion, it said, pointing to the need for a bigger cash injection.
“The Prime Minister (Tan Sri Muhyiddin Yassin) continues with the old economic and welfare orthodoxy of giving one-off payments, when what is needed during a pandemic is serial financial aid on a regular basis to save jobs, businesses and livelihoods.
“Financial assistance should not be limited to the B40, but also given to the M40 group, to prevent them from slipping into the low-income bracket.”
The statement was signed by PKR president Datuk Seri Anwar Ibrahim, Amanah president Mohamad Sabu and DAP secretary-general Lim Guan Eng.
The PH council also urged for an automatic loan moratorium extension for all Malaysians except those in the T20 bracket.
This, like the mooted welfare payment, should be done until the National Covid-19 Immunisation Programme is completed at the end of the year, it said.
“The cost should be borne by the banking industry, which recorded a healthy profit after tax of nearly RM23 billion in 2020 compared with RM32.3 billion in 2019.”
Additionally, the council proposed hiring perks for two years, comprising wage incentives of RM500 a month for local workers and hiring incentives of RM300 monthly for employers.
This will help create employment for 300,000 Malaysians, costing the government RM6.5 billion per annum, it said.
The council added that RM3.5 billion should be injected for the Health Ministry to ramp up the national inoculation campaign; accelerate testing, tracing and treatment; upgrade hospital capacity and capability; and, secure more medical equipment and human resources.
Another RM28 billion should go towards financial grants, including wages; rental and utility subsidies; and, loan guarantees and credit extensions, for small and medium enterprises, and the construction, retail and tourism industries, it said.
“This aid package is needed to encourage a whole-of-society approach not only to Covid-19, but also to soften the adverse economic impact of a total lockdown and avert a deepening economic recession.”
It said the forgoing of ministers and their deputies’ salaries for three months, as announced by Muhyiddin, does not compensate for a whole-of-government failure, or allay the public’s fear of Covid-19 and desperate search for vaccines.
“How much do ministers lose when they still receive their MPs’ allowance, and most importantly, can rely on the RM5 million in annual constituency allocations?”
To battle the pandemic using a whole-of-society approach, PH once again urged for Parliament to reconvene immediately, and for all lawmakers, including those in the opposition, to be given equal constituency allocations to assist the people until the pandemic is over. – The Vibes, June 1, 2021
