SUSTAIN, SUPPORT
It includes additional RM11 billion fiscal injection, 5 thrusts and 20 strategic initiatives
THE government unveils a RM20b assistance package called Pemerkasa, the sixth in the one year since an unprecedented MCO was enforced to stop the spread of Covid-19. The 20 initiatives aim to further alleviate the difficulties faced by Malaysians in most affected sectors.
ARM20 billion assistance package, called Pemerkasa, was unveiled by the government yesterday to further mitigate the adverse impact of the Covid-19 pandemic.
This is the sixth package since the government imposed the Movement Control Order to stop the spread of Covid-19.
Prime Minister Tan Sri Muhyiddin Yassin said the package included an additional RM11 billion fiscal injection with five main thrusts and 20 strategic initiatives.
Apart from controlling the spread of Covid-19 and to drive the country’s economic recovery, Pemerkasa was another effort to strengthen the country’s competitiveness and help transform the economy.
“The initiatives will help stimulate the country’s economic growth, support business continuity and continue with targeted assistance for the people and sectors still affected by the pandemic,” he said in his special address on television yesterday.
Muhyiddin said the country was embarking on the fifth stage, or “revitalising” phase of the 6R economic recovery comprehensive plan.
“At the moment, the nation’s recovery will focus on efforts to jump-start and create a conducive economic environment in the country.”
Muhyiddin said the government would continue providing support to the business community, especially among small- and medium-scale enterprises (SMEs) by continuing the Special Prihatin Grant or GKP3.0 to ensure a sustainable future for companies.
He said eligible micro and SME enterprises would receive a oneoff payment of RM1,000 each under GKP3.0 to help them resume their operations that were affected following the adverse economic impact brought about by the pandemic.
The GKP3.0, he said, was expected to benefit more than one million entrepreneurs.
He also said under Pemerkasa, RM500 million would be allocated to the micro-credit financing fund, which would be distributed through programmes under Bank Simpanan Nasional (BSN), National Entrepreneur Group Economic Fund (Tekun), Majlis Amanah Rakyat (Mara) and SME Corp.
This, he said, was an additional allocation to the RM1 billion in micro-credit financing fund that was introduced under the 2021 Budget and approved in Parliament last year.
“Through BSN, RM300 million would be allocated with the maximum financing amount of RM50,000, in which the interest rate has been reduced from 3.5 per cent to three per cent.
“The loan tenure is for five years, in which repayment will only start on the sixth month.”
Muhyiddin said Tekun Nasional would allocate RM60 million under the Informal Financing Scheme with a financing limit of up to RM5,000 to help and spur the informal sector.
“In addition, the Tekun Mobilepreneur will be extended to cover financing for repairing and purchasing new motorcycles with a limit of RM10,000 (for each application).
“To complement this initiative, locally assembled motorcycles with engine capacity of 150cc and below are eligible for 100 per cent excise duty exemption starting April 1 until Dec 31,” he said.
Tekun would also introduce its Tekun Pos-preneur programme to help eligible applicants to generate income through delivery of goods contract.
He said Mara would implement the Micro Prihatin Business Financing Scheme, which would give priority to assist 1,000 Bumiputera micro-entrepreneurs.
“A total of RM50 million will be allocated for the scheme with the maximum financing of RM50,000 (for each eligible application) with interest from as low as three per cent,” he said.
SME Corp would provide RM50 million to help local SMEs to ap
ply up to RM250,000 in loans at interest rates from as low as three per cent.
To create a conducive business environment at the grassroots, Muhyiddin said the government would allocate RM5 billion under Pemerkasa for small-scale projects.
The move was expected to benefit small contractors from the G1 to G4 categories.
“Among the small-scale projects identified are repair works on infrastructure and public facilities damaged due to floods; road repairs; social amenities programmes; repair works on strata properties, including replacement of lifts at public housing schemes; and, the setting up of food stalls at areas under the supervision of the local authorities.
“The government will also simplify the procurement procedures to facilitate the implementation of projects,” he said.
To help tourism players, wholesale and retail sectors, and other types of businesses that were affected by MCO 2.0, such as gyms and spas, the government would extend the Wage Subsidy Programme 3.0 for another three months on a targeted basis. An allocation of RM700 million had been provided for this.
“This initiative will benefit 400,000 employees and 37 employers,” said Muhiyiddin, adding that the government, to date, had distributed more than RM14.4 billion to fund the Wage Subsidy Programme, which had benefited 2.7 million employees and more than 330,000 employers.
Muhyiddin said the government would also extend the scope of PenjanaKerjaya 2.0 to promote jobs creation and increase employment opportunities.
He said Penjana Kerjaya 2.0, carried out under the Social Security Organisation (Socso), had helped provide job placements for almost 200,000 people.
“A total of RM300 million (allocated under Pemerkasa to extend the scope of Penjana Kerjaya 2.0) is expected to benefit 60,000 employees, where each employee will receive RM600 a month for a maximum of six months.
“For employers who provide short-term employment opportunities in the gig industry that are registered with Socso, they are entitled to receive RM200 for each worker placement,” he said.
In addition, the Tekun Mobilepreneur will be extended to cover financing for repairing and purchasing new motorcycles with a limit of RM10,000 ( for each application). TAN SRI MUHYIDDIN YASSIN prime minister