Malaysia unveils US$8.2 billion package to save jobs amid coronavirus recession

The new measures will fund 40 initiatives to help businesses and put cash in the hands of citizens

The package comes amid rumours that members of Prime Minister Muhyiddin Yassin’s coalition are defecting to support Mahathir Mohamad

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Job losses in Malaysia rose 42 per cent in the January-March quarter compared with the same period last year. Photo: EPA-EFE

Published: 4:25pm, 5 Jun 2020Updated: 12:11am, 6 Jun 2020

Malaysia’s Prime Minister Muhyiddin Yassin on Friday unveiled a fresh 35 billion ringgit (US$8.2 billion) stimulus package to fend off job losses caused by the coronavirus recession, adding to measures rolled out earlier in the year worth over US$61 billion.

In a televised address, Muhyiddin refrained from directly addressing heated chatter about defections from his fragile administration to the former ruling coalition led by Mahathir Mohamad, but said trade conflicts and political unrest around the world were worsening global economic conditions.

The new measures – which include 10 billion ringgit of direct fiscal spending – will fund 40 initiatives to help businesses across various sectors as well as put cash in the hands of citizens.

“I believe the measures I announced today will help revitalise support among investors, businesses and citizens to work together to stimulate the economy,” Muhyiddin said in his speech.

A man in Kuala Lumpur walks past closed stores on April 23, 2020, during the country’s restricted movement order. Photo: AP

The latest measures include a one-off payment of 300 ringgit to single mothers and citizens with disabilities, grants for gig-economy enterprises and a three-month extension of a previously announced wage subsidy programme.