Government cash set to boost economic recovery
The Malaysian government has injected another RM 11bn ($2.65bn) into the economy to support the current Covid recovery programme, already costing RM 20bn.
The Strategic Programme to Empower the People and Economy – known as Pemerkasa – is to focus on 20 strategic initiatives to boost economic growth, support business and continue targeted assistance to the people and sectors that are still affected, said Prime Minister Tan Sri Muhyiddin Yassin at the launch of the initiative.
He added: “At this stage, the economic recovery strategy is focused on efforts to boost and revive economic activity, or jump-start the economy.”
The five focuses of Pemerkasa are to curtail the spread of Covid-19, drive economic recovery, strengthen national competitiveness, ensure a regional and community inclusion agenda, and transform the economy.
Muhyiddin said the government was also committed to reviving the affected economic sectors through the immediate implementation of development projects, the provision of wage incentive, as well as the provision of tax incentives and micro-credit financing facilities.
“The government has agreed to increase the allocation for small-scale projects in 2021 to RM5 billion from RM2.5 billion. Among small projects that will be dedicated to class G1 to G4 contractors are repairs such as infrastructure and public facilities damaged due to floods.
“Apart from that, micro-credit facilities will also be provided, among others, through Bank Simpanan Nasional (BSN), a RM 300 million fund will be provided with a financing limit of up to RM50,000, where the interest rate has been reduced to 3% from 3.5%,” said Muhyiddin.
SME Corporation is also involved and will provide RM50 million to help local small and medium enterprises (SMEs) obtain financing of up to RM250,000 at an interest rate as low as 3.0 per cent, said Muhyiddin.
The Prime Minister also announced initiatives to revitalise the tourism and retail sectors with various tax exemptions and deferment of income tax instalment payments.
To further encourage companies to raise funds through the stock market, listing-related fees will be waived for 12 months for companies applying for listing on the Main, LEAP or ACE markets.