Coronavirus: Malaysia announces US$2.3 billion third stimulus package for economy

The new measures, mainly targeted at SMEs and limiting retrenchment, take the country’s total virus-fighting spending to US$59.6 billion

Malaysia is in the midst of a month-long partial lockdown in a bid to curb the spread of Covid-19

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Malaysian Prime Minister Muhyiddin Yassin announces the new measures during a press conference at the Prime Minister’s Building. Photo: DPA

Published: 9:27pm, 6 Apr 2020Updated: 9:26am, 20 May 2020

The Malaysian government on Monday announced a stimulus package of 10 billion ringgit (US$2.3 billion), its third in the wake of the Covid-19 pandemic, in a bid to stave off the economic repercussions of its month-long partial national lockdown.

The package is aimed at small and medium-sized enterprises (SMEs) – which make up 98 per cent of Malaysia’s economy, according to government data.

It consists of 7.9 billion ringgit that has been earmarked for an expansion of wage subsidies for employers based on the size of their workforce, while the other 2.1 billion ringgit is a for a special grant of 3,000 ringgit for all registered micro-SMEs – SMES with a turnover of less than 300,000 ringgit or fewer than five employees.

The government also abolished a 2 per cent interest rate for an SME-targeted microcredit scheme, and promised income tax deductions to landlords who reduced rental rates.

Prime Minister Muhyiddin Yassin urged Malaysians to stay committed to the fight against Covid-19, calling the restricted movement order imposed on Mar 18 “the sacrifice we are called to make in order to win this war against the deadly virus”.

Under the partial lockdown, residents are prohibited from leaving their homes until mid-April except to buy groceries, for emergencies or to access health care. So far, 6,048 people have been arrested for breaching the movement control order.

Malaysia currently has more than 3,700 confirmed cases of Covid-19 – the highest in Southeast Asia – while 62 people have died of the disease.

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Coronavirus: Malaysia announces US$2.3 billion third stimulus package for economy

The new measures, mainly targeted at SMEs and limiting retrenchment, take the country’s total virus-fighting spending to US$59.6 billion Malaysia is in the midst of a month-long partial lockdown in a bid to curb the spread of Covid-19

The new measures, mainly targeted at SMEs and limiting retrenchment, take the country’s total virus-fighting spending to US$59.6 billion

Malaysia is in the midst of a month-long partial lockdown in a bid to curb the spread of Covid-19