Sum of Measures 1—5 (Total Package)
|Measure||Amount (Local)||Amount (USD)||Details||Update||Source|
|01 - Liquidity Support info_outline||MYR44,600,000,000||USD10,382,233,810|
|01A - Short-term lending info_outline||MYR28,600,000,000||USD6,657,665,627||
(i) Since March 2020, Bank Negara Malaysia has provided additional liquidity of approximately MYR42 billion (as of May 5) into the domestic financial markets, via various tools including outright purchase of government securities, reverse repos and the reduction in Statutory Reserve Requirement [MYR16 billion in Measure 1B is subtracted from MYR42 billion]; (ii) June 5 in Short-term National Economic Recovery Plan or PENJANA: (a) To aid the tourism sector, a MYR1 billion PENJANA Tourism Financing (PTF) facility will be made available to finance transformation initiatives by SMEs in the tourism sector to enable them to remain viable and competitive in the new normal; (b) SME Go-Scheme for Liquidity Support amounting to MYR1.6 billion: SME Bank will provide financing support to contractors and vendors who were awarded with small government projects under the Pakej Rangsangan Ekonomi (PRE) 2020 and the PRIHATIN stimulus package; (c) No amount/estimate: To provide relief to SMEs’ cash flows, the Government is encouraging government-linked companies (GLCs) and large corporations to accelerate their vendors’ payment terms.
|01B - Support policies for short-term lending info_outline||MYR16,000,000,000||USD3,724,568,183||
(i) No amount/estimate: March 20, Bank Negara Malaysia (BNM) lowered the Statutory Reserve Requirement (SRR) Ratio by 100 basis points to 2%. May 5, SRR remains at 2%; (ii) May 5, Bank Negara Malaysia (BNM) announced that Malaysian Government Securities (MGS) and Malaysian Government Investment Issues (MGII) can be used by banking institutions to fully meet the Statutory Reserve Requirement (SRR) compliance effective May 16. This flexibility is available until May 31, 2021. This measure will release approximately MYR16 billion worth of liquidity into the banking system.
|01C - Forex operations info_outline|
|02 - Credit creation info_outline||MYR50,000,000,000||USD11,639,275,571|
|02A - Financial sector lending/funding info_outline|
|02B - Support policies for long-term lending info_outline||
No amount/estimate: (i) March 3, BNM lowered the Overnight Policy Rate (OPR) by 25 basis points to 2.5%. May 5, OPR dropped by 50 basis points to 2%. The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.25% and 1.75%, respectively. July 7, the Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the OPR by 25 basis points to 1.75%. The ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.00% and 1.50%, respectively; (ii) March 24, The Securities Commission Malaysia (SC) waived annual licensing fees for capital market licensed entities; (iii) March 25, BNM announced measures temporarily easing regulatory and supervisory compliance on banks to enable them to support loan deferment and restructuring; (iv) March 27, in PRIHATIN, Special Relief Facility (SRF) interest rate is reduced from 3.75% to 3.5%; (v) April 10, The Companies Commission of Malaysia announced measures to enhance protection of distressed companies against liquidation; (vi) April 16, SC announced regulatory relief measures for public listed companies.
|02C - Loan guarantees||MYR50,000,000,000||USD11,639,275,571||
March 27 in PRIHATIN, The Government will also provide a MYR50 billion guarantee scheme up to 80% of the loan amount for financing working capital requirements. The minimum guaranteed loan size is MYR20 million per company.
|03 - Direct long-term lending info_outline||MYR108,250,000,000||USD25,199,031,612|
|03A - Long-term lending info_outline||MYR8,250,000,000||USD1,920,480,469||
(i) March 27 in PRIHATIN: (a) Increasing the size of the All Economic Sector Facility Fund by MYR1 billion to MYR6.8 billion to enhance access to financing for SMEs. The maximum tenure is 5 years; (b) Increasing the size of the Special Relief Facility (SRF) fund by MYR3 billion to MYR5 billion for small and medium-sized enterprises (SMEs). The maximum tenure is 5.5 years including 6 months moratorium; and (c) Providing additional funds of MYR500 million under the Micro Credit Scheme to a total of MYR700 million for soft loans at 2% interest rate without collateral. Loan eligibility requirements are also relaxed to a minimum of 6 months of operation compared to 1 year of operation. The maximum tenure is 5 years. As of July 20, 7,000 people received BSN micro credit facility with a total value of MYR247 million and more than 23,000 people received TEKUN micro credit facility with a total value of MYR177 million. As of July 31, approved applications by local banks and accepted by SMEs amounted to MYR9.63, and this will benefit 21,410 SMEs. This total includes the Special Relief Facility, Automation & Digitalisation Facility, All-Economic Sector Facility, and Agrofood Facility funds.; (ii) June 5 in Short-term National Economic Recovery Plan or PENJANA: (a) The Government will continue to provide loans to eligible enterprises for adoption or subscription of digitalization services under the SME Technology Transformation Fund totalling MYR500 million loan; (b) Under PENJANA SME Financing Facility, the banking sector will offer an additional MYR2 billion of funding to assist SMEs adversely impacted by COVID-19 sustain business operations at a concession rate of 3.5%; (c) PENJANA microfinancing, amounting to MYR400 million is a new funding program for SMEs and microenterprises at an interest rate of 3.5%. Aggregated approved financing will be capped at MYR50,000 per enterprise, and MYR50 million is earmarked for women entrepreneurs; (d) Bumiputera Relief Financing amounting to MYR500 million: (1) Perbadanan Usahawan Nasional Berhad (PUNB) will provide MYR200 million dedicated financial assistance for Bumiputera-owned businesses in the form of working capital, operational expenditure, system automation, equipment and expenditure to implement social distancing practices (eg. on PPEs), and financing of MYR100,000 – MYR1 million for up to 5 years at 3.5% per annum interest rate with moratorium of up to 6 months from disbursement; and (2) Through Majlis Amanah Rakyat (MARA) the Government will also allocate MYR300 million working capital loans to assist affected Bumiputera entrepreneurs including training colleges. Maximum loan amount of MYR1 million with 3.5% per annum interest rate; (e) Part of the Agriculture and Food Sector Support amounting to MYR350 million is allocated to microcredit financing under Agrobank for agropreneurs (including commodity players) with interest rate of 3.5%. Maximum loan size is MYR50,000, and tenure of loan is 5 years.
|03B - Forbearance||MYR100,000,000,000||USD23,278,551,143||
March 27 in PRIHATIN, To assist SMEs and individuals, the Government welcomes the willingness of banking institutions to offer a 6-month moratorium, convert credit card balance to term loans and restructure corporate loans. This measure, amounting to MYR100 billion, is vital to enabling companies to retain employment and immediately resume their business activities. In return, the Government agrees that the bank’s income from interest or profit from loans or financing during the moratorium will only be taxable when the income is received after the moratorium period. July 29, The government has agreed to further extend the bank loan moratorium for the public. The targeted moratorium extension will run for three months but only for those who lost their jobs this year and are yet to find employment, after that period banks can further extend the help based on individual situation. As for those who are still employed but seen their wages reduced or affected owing to the COVID-19 pandemic, the amount of their monthly loan commitments would be reduced, in line with the quantum of their salary deduction. As of August 11, the value of the moratorium is estimated at MYR66.6 billlion. Out of this figure, a total of MYR23.3 billion was utilized by the business sector while MYR43.3 billion was utilized by the Rakyat (or people).
|04 - Equity support info_outline||MYR1,200,000,000||USD279,342,614||
June 5 in Short-term National Economic Recovery Plan or PENJANA, An investment fund, amounting to MYR1.2 billion, will be established, which will match institutional private capital investment with selected venture capital and early stage tech fund managers.
|05 - Government support to income/revenue||MYR94,938,900,000||USD22,100,400,391|
|05A - Health||MYR2,150,000,000||USD500,488,850||
(i) No amount/estimate: March 23, Temporary elimination of import tariffs on face masks; (ii) March 27, in PRIHATIN: (a) To curb the spread of COVID-19 outbreak, the Government announced an allocation of MYR500 million to the Ministry of Health (MOH). This allocation is to purchase medical apparatus such as ventilators and ICU equipment, personal protective equipment (PPE) for public medical personnel as well as laboratory requirements for testing COVID-19; and (b) The Government is also allocating an additional MYR1 billion to purchase equipment and services, which include obtaining medical expertise from private healthcare service providers to contain the outbreak; (iii) No amount/estimate: March 30, Temporary elimination of import tariffs on raw materials, undenatured ethyl alcohol and denatured ethyl alcohol used for the production of hand sanitizers. Imports also exempted from sales taxes and excise duties; (iv) June 5 in Short-term National Economic Recovery Plan or PENJANA: (a) The government will double the existing allocation for the PEKA B40 Programme to a total of MYR100 million (amount is MYR50 million only) in order to fund health screening, medical device assistance, cancer treatment incentives, and subsidy for transportation for health for the B40 group; and (b) Tax relief for COVID-19 related expenses, amounting to MYR600 million, to encourage businesses to adapt to new norms and adhere to SOPs: extend the period and expand the scope of expenses allowed as tax deduction or capital allowance for COVID-19’s prevention, including COVID-19 testing and purchase of PPE and thermal scanners.
|05B - Non-health||MYR92,788,900,000||USD21,599,911,542||
(i) March 27 in PRIHATIN: (a) The Government will provide a one-off cash assistance, Bantuan Prihatin Nasional (BPN) with an allocation of MYR10 billion. Among the beneficiaries include employees in the private sector, FELDA settlers, farmers, fishermen and small traders; (b) The remaining cash transfers under the Bantuan Sara Hidup (BSH) program totaling MYR3.2 billion will be paid out in July 2020; (c) The support totaling MYR270 million is targeted for students at various levels of tertiary education; (d) The Government will work together with non-governmental organizations (NGOs) and relevant social entrepreneurs to provide food assistance, healthcare and shelters to the vulnerable groups such as senior citizens and children in shelters, the disabled, homeless and orang asal with a total allocation of MYR25 million; (e) The Government has previously agreed to defer the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) loan repayment for all borrowers for six months, amounting to MYR750 million; (f) The Government agrees to postpone loan repayment to borrowers of the Skills Development Fund Corporation (PTPK) for the same period beginning April 1 to September 30. With an estimated collection of MYR149.2 million, this initiative will benefit 174,500 borrowers; (g) The Government rental exemption for the Projek Perumahan Rakyat (PPR) with a cost of MYR3 million borne by the Government; (h) For the rent-to-own (RTO) units, a six-month moratorium is provided effective April until September 2020, involving 4,649 RTO units at MYR5.7 million; (i) No amount/estimate: As for Public Housing, the Kuala Lumpur City Hall will provide similar exemption which will benefit more than 40,000 tenants; (j) No amount/estimate: The Government has also approved a 6-month lease exemption on all premises owned by the Federal Government; (k) The Government with Tenaga Nasional Berhad (TNB) will increase the allocation of discount on electricity bill to MYR530 million, with the introduction of a tiered-discount system for households. As of July 31, a total of MYR566.6 million was utilized -- MYR202.1 million by the business sector and MYR364.5 million by individuals; (l) The Government will provide a one-off cash assistance of MYR500 to more than 1.5 million civil servants of grade 56 and below, including contract workers [The estimated amount is MYR750 million]; (m) More than 850,000 Government pensioners will be given a one-off assistance of MYR500 in April 2020 [The estimated amount is MYR425 million]; (n) The Government will allocate MYR1 billion for Food Security Fund; (o) The Government provides MYR100 million for the development of infrastructure for food storage and distribution as well as crop integration program and also allocates MYR64.4 million to viable Pertubuhan Peladang Kawasan and Pertubuhan Nelayan Kawasan. This is to develop agro-food projects that are capable of generating income within three to six months; (p) The Government will introduce Wage Subsidy Programme to assist employers in retaining their workers with an allocation of MYR5.9 billion; (q) The Government will provide a one-off cash assistance of MYR500 to 120,000 e-hailing drivers with a total allocation of MYR60 million. As of July 20, 68,336 e-hailing drivers have received a cash allowance of MYR500 with a total of MYR34 million. A total of 37,127 taxi drivers, tour guides and bus drivers have received a cash allowance of MYR600 with a total of MYR22.2 million; (r) The Government has agreed to pay salaries to the workers of service contractors despite their absence during the MCO amounting to MYR110 million; (s) The Employees Provident Fund (EPF) includes options for deferring payments, restructuring and rescheduling of employers' contributions. The measure is expected to provide cashflow to employers which is estimated at MYR10 billion; (t) Exempt payment for Human Resources Development Fund (HRDF) levy across all sectors for six months beginning April 2020. This measure is expected to assist companies’ cashflow with a total savings of MYR440 million; (u) No amount/estimate: The Government, allows the postponement of income tax instalment payments to all SMEs for three months beginning April 1; (v) The Government has identified several small projects such as improving roads, upgrading dilapidated schools in Sabah and Sarawak, cleaning houses of worship and police stations as well as upgrading tourism facilities with an allocation of MYR2 billion; (w) The Government will provide a direct fiscal injection of MYR25 billion to ease the burden of rakyat and businesses; (x) The Government in collaboration with telecommunication companies will provide free internet services to all customers during MCO period starting April, amounting to MYR600 million; (ii) April 6 in PRIHATIN PLUS, The Malaysian government issued extra funding worth MYR10 billion intended to help SMEs manage their cashflow and to retain employees: (a) The wage subsidy programme announced on March 27 will be expanded from MYR5.9 billion to MYR13.8 billion, an increase of MYR7.9 billion; and (b) Special PRIHATIN Grant amounting to MYR2.1 billion will be established for eligible micro enterprises. A grant of MYR3,000 will be provided to each company, benefitting almost 700,000 micro enterprises. As of July 20, in terms of assistance for entrepreneurs, a total of 545,000 micro entrepreneurs have received Special Concerning Grants with a total value of MYR1.6 billion; (iii) June 5, in Short-term National Economic Recovery Plan or PENJANA: (a) The wage subsidy programme, amounting to MYR5.3 billion, will be extended for a further 3 months with a subsidy of MYR600 per employee for all eligible employers; (b) No amount/estimate: The National Employment Services under PERKESO will be upgraded by enhancing the job portal and employment placement services and collaborating with the private job sites for employment matching; (c) The Government will introduce incentives, amounting to MYR1.5 billion, to encourage the hiring of the unemployed; (d) A MYR2 billion fund will be dedicated to reskilling and upskilling programmes for Youth and Unemployed Workers; (e) The Government will facilitate policies to support the growth of the gig economy and the welfare of gig economy workers. This amounts to MYR75 million; (f) The Government allotted MYR800 million to support employers and employees as work-from-home arrangement is encouraged; (g) To ease the transition to the new normal of working-from-home, the Government will support working parents through the subsidy of child care expenses. There will also be incentives to encourage child care centres to comply with the new normal and to incentivise certification of early education practitioners. These measures amount to MYR200 million. As of July 31, 1,785 nurseries have been reviewed and approved with a total allocation of MYR8.3 million; (h) Under Public Transport Subsidy amounting to MYR200 million, the Government will introduce an unlimited monthly travel pass costing MYR30 for use on all rail services (MRT, LRT, Monorail), BRT, RapidKL buses and MRT feeder buses. As of July 31, a total of 204,325 passes were sold, worth MYR34.7 million; (i) Social assistance support, amounting to MYR108 million, will be provided to identified vulnerable groups: (1) Persons with disabilities (OKU): 185,713 recipients costing MYR55.7 million, (2) Home Help Services: 1,815 recipients costing MYR544,500, and (3) Registered single mothers: 1,350 recipients costing MYR405,000; (j) To enable the transition to the new normal of remote learning and work, MYR3 billion support will be provided to increase internet connectivity for education, productivity (video conference applications) and news; (k) Eligible microenterprises and SMEs will be onboarded to shift towards business digitalization through a co-funded program with MDEC and e-commerce platforms. This Micros and SMEs e-commerce campaign amounts to MYR70 million; (l) The Government will collaborate with e-commerce platforms to co-fund digital discount vouchers, amounting to MYR70 million. This is done to encourage spending on products from local retailers; (m) The Government will continue to provide grants to eligible enterprises for adoption or subscription of digitalization services under the SME Digitalisation Matching Grant totalling MYR100 million, in partnership with telecommunication companies and the Smart Automation Grant totalling MYR100 million, capped at up to MYR1 million per company; (n) An online one-stop business advisory platform for the microenterprises and SMEs, amounting to MYR5 million, will be set up to enhance the outreach of the existing physical SME Hub; (o) MYR2.4 billion is allocated to ease financial stress on businesses through remissions of penalties related to late tax payments; (p) To encourage and sustain the role of social enterprise in promoting responsible business, the Government will provide a matching grant through Malaysian Global Innovation & Creativity Centre (MaGIC) totaling MYR10 million to social enterprises who are able to crowdsource contributions and donations to undertake social projects that will address the challenges faced by targeted communities through innovative ways; (q) To catalyze establishment of new businesses, financial relief, amounting to MYR300 million, will be provided in the form of income tax rebate for newly established SME and stamp duty exemption for SMEs on any instruments executed for Mergers and Acquisition; (r) National Technology and Innovation Sandbox, amounting to MYR100 million, will be developed to pilot new technology solutions and provide relaxation of regulations to text new technology solutions (e.g. drone delivery, autonomous vehicles); (s) Accelerate the digitalization of government services, amounting to MYR20 million, to reduce face-to-face transactions; (t) National “Buy Malaysia” Campaign, amounting to MYR20 million, to encourage the consumption of Malaysia-made products and services; (u) ePENJANA credits in e-wallet, amounting to MYR750 million, to encourage contact-free payment and to boost consumer spending. As of August 7, 7.44 million people have successfully received MYR50 into their e-Wallets with a total value of MYR372 million; (v) Incentives for Property Sector, amounting to MYR1 billion, to stimulate the property market and provide financial relief to home buyers; (w) Tax incentives for purchase of passenger cars, amounting to MYR897 million; (x) An allocation of MYR20 million to encourage transition away from the traditional working hours concept of 9 AM to 5 PM towards extended working hours on shifts-basis; (y) An allocation of MYR50 million to attract foreign companies to relocate their business into Malaysia by addressing the risk of re-shoring; (z) Tax incentives for the tourism sector amounting to MYR1.8 billion; (aa) Dedicated funding and support for the arts, culture, entertainment, events and exhibitions sector amounting to MYR225 million; (ab) Part of the Agriculture and Food Sector Support amounting to MYR50 million is allocated to agrofood workforce mobility via incentives for pioneer companies to train and educate workforce to explore opportunities in agriculture and plantations and in-kind benefits for Urban Farming (e.g. Fertilisers, Seeds, Infrastructure,Equipment, Advisory and Training) worth MYR500 per person and MYR50,000 per community; (ac) Support the commodity sector through 100% export duty exemption from 1 July 2020 to 31 December 2020. This amounts to MYR200 million. As of July 20, wage subsidy (in PRIHATIN, PRIHATIN PLUS, and PENJANA) worth MYR7.4 billion has also been channeled. This initiative has benefited 313,000 employers and 2.5 million employees nationwide. As of July 31, MYR8.99 million has been approved, benefiting 2.6 million employees.
|06 - Budget reallocation info_outline|
|07 - Central bank financing government|
|07A - Direct lending & reserve drawdown|
|07B - Secondary purchase: government securities|
|08 - International Assistance Received||MYR52,408,760||USD12,200,000|
|08A - Swaps info_outline|
|08B - International loans/grants||MYR52,408,760||USD12,200,000|
|08B1 - Asian Development Bank||MYR47,253,800||USD11,000,000||
April, USD2.73 million as a guarantee under the Supply Chain Finance Program (Additional Financing). Another USD2.73 million is co-financed. As of September 11, the amount of the guarantee increased to USD11 million. The amount of co-financing also increased to USD11 million [update].
|08B2 - Other||MYR5,154,960||USD1,200,000||
May 20, The United States through the US Agency for International Development will provide (a) health assistance in response to COVID-19 amounting to USD1 million, and (b) Migration and Refugee Assistance (MRA) humanitarian assistance to support COVID-19 response efforts for refugees and asylum seekers in Malaysia amounting to USD0.2 million.
|09 - International Assistance Provided|
|09A - Swaps info_outline|
|09B - International loans/grants|
|10 - No breakdown||MYR38,011,100,000||USD8,848,433,354||
(i) March 27, Part of PRIHATIN, amounting to MYR250 billion, will provide immediate assistance to ease the burden of all segments of the rakyat and ensures that no one is left behind. The stimulus package outlines three objectives: (a) protecting rakyat, (b) supporting businesses, and (c) strengthening economy; (ii) June 5, Part of Short-term National Economic Recovery Plan, also referred to as PENJANA, worth MYR35 billion to empower the people, propel businesses and stimulate the economy.
|11 - Other Economic Measures||
No amount/estimate: (i) March 23, The SC and Bursa Malaysia suspended short-selling until April 30. April 28, the suspension was extended through June 30; (ii) June 5 in Short-term National Economic Recovery Plan or PENJANA: (a) COVID-19 Temporary Measures Act is proposed to minimize disruption to social and economic well-being activities caused by contractual breaches and enforcement of insolvency actions on groups affected by COVID-19 and Movement Control Order (MCO). This is designed to provide sufficient runway for businesses to recover their operations and relief from certain contractual obligations and financial distress for the revival of the economy. August 25, The Act, now being referred to as the Temporary Measures for Government Financing COVID-19 Bill, to set up a MYR45 billion fund for COVID-19 was passed by Dewan Rakyat (Lower House). Apart from setting up the fund, the law will allow the government borrowings to raise the permissible statutory debt level ratio of 55% of GDP to 60% [update]; (b) To enable the Rakyat (or people) to join the Government in supporting post recovery measures, the MOF will issue an Islamic debt instrument -- the Sukuk PRIHATIN. Proceeds from the sukuk issuance will be utilized for specific development programmes such as connectivity of schools (especially in rural areas), funding for micro enterprises (focused on women entrepreneurs) and research grants for infectious diseases. August 18, The first digital sukuk was launched with a nominal value of MYR500 million. The profit rate is 2%per annum over two years, maturity date is September 22, 2022 [update]; (iii) September 1, The government is prepared to implement additional economic stimulus package or other initiatives to help the people in facing economic constraints if necessary and if the government’s financial situation allows it [update].
|12 - Non-Economic Measures||
(i) No amount/estimate: March 20, Temporary export ban on face masks; (ii) A Movement Control Order (MCO) was put in place on March 18-31 and subsequently extended until April 14: borders are closed; schools, universities and non-essential businesses are closed; all public gatherings are banned; and May 10, MCO has become conditional movement control order (CMCO). It will be extended until June 9; (iii) May 4, The authorities started easing the MCO by allowing most businesses to reopen. However, 7 states out of 14 have opted for a more delayed approach; (iv) June 7, The implementation of the Recovery Movement Control Order (RMCO) from June 10 to Aug 31 was announced; (v) From June 24, schools will start gradually reopening; (vi) Borders will remain closed and overseas travel restricted until at least August 31; (vii) August 28, The government extended the RMCO until December 31 [update].