What you need to know about the Malaysia Short-Term Economy Recovery Plan 2020

Today the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin presented in his live conference a list of goodies for Malaysians aiming to assist Malaysia's economy affected by the Covid-19 crisis. The effort is called the National Revitalisation Plan (PENJANA) is a fast-paced step to rebuild and revitalize the economy in the short term. 

Check out the goodies below:

Individuals:

• Government to introduce My30 unlimited pass for public transport users. Commuters can now pay RM30 a month for unlimited rides. It is open to all nationalities, beginning June 15 until the end of 2020.
• E-vouchers will be available for those who order child-minders’ services online.
• Up to a RM3,000 incentive of individual income tax for fees paid by parents to taska and tadika (kindergartens).
• Campaign Shop Malaysia Online to encourage trade via e-commerce platforms using promo codes and discount vouchers. Government allocating RM70mil, which would be matched by e-commerce platforms.
• To encourage Malaysians to use contactless payments, the government has allocated RM75mil to e-wallets, or RM50 per person, where Malaysians can begin applying in July 2020.
• 100% tax exemption for the purchase of locally assembled cars beginning June until Dec 31.
• Full exemption of tourism tax from July 1,2020, until June 30,2021.
• Exemption of services tax on lodgings and accommodation services extended from Sept 1,2020 until June 30, 2021.
• Free additional 1GB Internet data daily until Dec 31
• Home Ownership Campaigns (HOC) will be re-introduced. Through this campaign, stamp duty exemption will be provided on the transfer of property and loan agreement for the purchase of home between RM300,000 and RM2.5mil
• full stamp duty exemption is given on loan agreement effective for sales and purchase agreements signed between June 1 to May 31, 2021.
• real property gains tax (RPGT) exemption for Malaysians for disposal of up to three properties between June 1, 2020 and Dec 31, 2021.
• The disabled and single parents registered under the Welfare Department will be eligible RM300 one-time payment. 

 

Job seekers:

• RM50mil matching grant for gig economy workers' EPF and Socso contribution.
• Financial incentives given to companies that offer jobs to youths and unemployed.
• RM9mil allocation to help the unemployed.
• RM2bil allocated for government to implement skills upgrading programmes in key industries such as electrical and electronics and ICT. 
• To attract foreign investments, the government offer zero tax for 15 years for new investments in manufacturing and fixed assets of RM500mil and above - creating new job opportunities.

 

 

Business owners:

• Wage Subsidy Programme which allocates RM600 per worker to be extended for another three months
• Employers who are not allowed to operate during the conditional movement control order (MCO), are allowed to apply for the wage subsidy programme
• An employment subsidy programme worth RM1.5bil. Companies will get financial subsidies for giving jobs to the unemployed.
• There are two incentives given to companies, whereby those that employ unemployed Malaysians under 40 will get RM800 per worker and firms that employ those 40 years and above or persons with disabilities (OKU) will get RM1,000. The incentives will be given for six months.
• Grants will be given to daycare (taska) operators for implementing and adhering to the SOPs (standard operating procedures) set by the government.
• Banking sector allocates RM2bil to assists SMEs, where applications begin mid-June, with a threshold of RM500,000 per SME.
• RM400mil to fund Penjana microcredit by Tekun and Bank Simpanan Nasional with RM50mil allocated especially for female entrepreneurs.
• RM1bil for the tourism industry under Penjana Tourism Funding to ensure that the country's tourism industry can still be competitive in the new normal.
• Cash-flow aid by SME Bank for G2 and G3 contractors that have been awarded minor government projects.
• RM10mil allocated to the Malaysian Global Innovation and Creativity Centre (MaGIC) to fund social enterprises for social projects to address issues faced by vulnerable groups.
• Penjana Nasional fund worth RM600mil to drive the process of digitalisation of businesses and innovation. A matching fund will be matched by local and international investors.
• RM75mil allocated to draft policies related to the so-called gig economy.
• Additional RM50mil to the Malaysian Investment Development Authority (Mida) for promotional and marketing activities.
• RM1bil for the tourism industry to help related SMEs to operate in the ‘new normal’.
• RM400mil microcredit by Tekun and Bank Simpanan Nasional; with RM50mil especially for female entrepreneurs.
• Lessen companies' financial burden through the waiver of penalty to companies that are late in submitting payment for SST as well as the extension of various tax exemptions.