Temporary measures Bill for RM45bil Covid-19 Fund passed

The Temporary Measures for Government Financing (Coronavirus Disease 2019) (Covid-19) Bill to set up a RM45bil Covid-19 Fund was passed by Dewan Rakyat.

Apart from setting up the fund, the law will allow the government borrowings to raise the permissible statutory debt level ratio of 55% of the gross domestic product to 60%.

Earlier during debates, Finance Minister Tengku Datuk Seri Zafrul Aziz said the government was ready to inject more funds for the stimulus packages if required.

“We are clear, consistent and have said many times that the government will monitor the situation. It is a dynamic plan and the government will act proactively,” he said.

Several Opposition lawmakers, including Opposition chief Datuk Seri Anwar Ibrahim, had urged the government to double the allocation for the Bill from the current RM45bil to RM90bil.

Anwar argued that several nations had set aside Covid-19 relief funds in tandem with the projected contraction of their respective economies.

The Bill was eventually passed with a voice vote in the Dewan.

A total of RM16.8bil from the fund will be used for wage subsidies, job retention and hiring and training assistance programmes.

Other uses of the fund include the Bantuan Prihatin Nasional (RM11.2bil), small-scale projects (RM4bil), skills and training (RM2bil), Penjana SME financing (RM2bil) and the Prihatin SME grant (RM1.9bil).

The fund will also be used for microcredit loans (RM1bil), the Health Ministry (RM1bil), food security (RM1bil), special allowance for frontliners (RM1bil), the Penjana national fund (RM600mil), ePenjana (RM520mil), electricity bill subsidies (RM500mil), Bantuan Sara Hidup (RM300mil) and higher education student assistance (RM600mil).