Coronavirus: Malaysia unveils massive US$57 billion economic stimulus package
- The measures include spending on public welfare and health care as well as support for businesses
- In announcing them, Prime Minister Muhyiddin Yassin assured Malaysians that ‘nobody would be left behind’
Of this amount, about 100 billion ringgit will be used to help businesses – mostly small and medium enterprises (SMEs) – while a further 128 billion ringgit will be allocated to public welfare.
The stimulus amount works out to be about 17 per cent of the country’s GDP and includes measures worth 20 billion ringgit announced last month by the previous government. It dwarfs the measures Malaysia took during the global financial crisis, when the government passed 67 billion ringgit of stimulus.
Announcing the measures on Friday, premier Muhyiddin Yassin assured Malaysians that “nobody would be left behind”, and that the money would be used to look after lower-income households as well as help boost the Health Ministry’s capabilities in battling the coronavirus.
For example, students and less well-off households would get cash transfers, with discounts on utility bills and free internet access.
This movement restriction order has dealt a heavy blow to the economy, especially the tourism and service sectors.
“We are a nation at war with invisible forces. The situation we are now facing is unprecedented in history,” the prime minister said in a televised address to announce the support package. He did not announce any change to this year’s economic growth forecast of 3.6 to 4 per cent or a fiscal deficit equal to 3.4 per cent of GDP.