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3-month freeze on bank loans as PM announces RM40 billion aid package

RM5 billion of the aid will come through direct fiscal injection by the government.

Staff Writers
3 minute read
Prime Minister Muhyiddin Yassin. Photo: Bernama
Prime Minister Muhyiddin Yassin. Photo: Bernama

Prime Minister Muhyiddin Yassin today announced a three-month moratorium on bank loans as part of an aid package known as Pemerkasa Plus worth RM40 billion to cushion the impact of the lockdown to take effect throughout the country for two weeks from tomorrow.

He also announced a 50% reduction in instalment payments for six months.

Borrowers in the B40 group as well as those affected by loss of income have the option to request for the three-month moratorium from banks.

In a live address, he said RM5 billion of the package would come through direct fiscal injection from the government.

Allocations are as follows:

  • RM1 billion for public health system
    • RM450 million for improving bed capacity and ICU equipment for Covid-19 treatment at hospitals including teaching hospitals and field hospitals
    • RM550 million for Covid-related expenditure for agencies including increase in operation costs and administration matters covering medication, reagents for screening and the selection of contract officers and the operation costs of quarantine and treatment centres
    • Extension of service for 14,000 contract medical officers and nurses until 2022 and the appointment of an additional 500 healthcare workers due for mandatory retirement this year on a contract basis
    • To boost vaccination rate from 80,000 doses per day to 150,000 doses per day
    • Use of government machinery for the transport of vaccine recipients to vaccination centres
  • RM2.1 billion for Bantuan Prihatin Rakyat
    • RM500 for households with monthly income of less than RM2,500
    • RM300 for households with monthly income of RM2,501-RM5,000
    • RM100 for singles earning less than RM2,500
  • RM1 billion for bus and taxi hire purchase rehabilitation scheme
    • 12-month loan moratorium for eligible bus and taxi operators and extension of loan period until 36 months
  • Mara Prihatin (Peace of Mind) programme
    • 30% discount on premise rental for affected entrepreneurs
  • RM1.5 billion for extension of wage subsidy programme
    • One month for all affected economic sectors
  • Exemption of levy payments for one month in June 2021
  • Increase in special Prihatin grant from RM1,000 to RM1,500 (RM1,000 in June and RM500 in July)
  • RM1.5 billion for credit micro financing (rates as low as 3%)
  • RM2 million for a facility for targeted assistance and recovery (for affected SMEs)
  • RM68 million for one-off aid for drivers of taxis, rental cars, school buses, tourist buses and e-hailing
  • Exemption of late payments for renewal of business licence until Dec 31, 2020 for micro SMEs, single ownerships and partnerships
  • Improvements to the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 (Act 829) to help affected individuals and businesses
  • Three-month extension of 10% electricity discount from July to September for six affected sectors
  • Special tax deduction for building owners and owners of business spaces for minimum 30% rental reduction for six months until Dec 31
  • Extension of stamp duty exemption for the Home Ownership Campaign until Dec 31
  • Extension of sales tax exemption for CKD passenger vehicles and CBU imports announced under Penjana initiative from July 1 to Dec 31
  • Targeted job creation – wage subsidy programmes, employment incentives and training programmes with a target of 500,000 for the year
  • RM2 billion for the implementation of small projects (G1-G4 contractors)
  • RM2 billion for the Jaringan Prihatin programme launched in May to help 8.4 million recipients subscribe to telecommunication services or access mobile phones
  • E-Belia programme to help two million youths and students at institutions of higher learning obtain credit of RM150 from e-cash service providers