Malaysia: PERMAI Assistance Package

Since the onset of the COVID-19 pandemic early year 2020, the Government has implemented economic stimulus packages worth RM305 billion, equivalent to more than 20% of GDP, to assist the people and businesses as well as to safeguard our economy. These economic stimulus packages involved a fiscal injection of RM55 billion by the Government. 

On 18 January 2021, our Prime Minister, YAB Tan Sri Dato’ Haji Muhyiddin Bin Haji Mohd Yassin announced the Perlindungan Ekonomi & Rakyat Malaysia (PERMAI) Assistance Package, valued at RM15 billion. Its objectives are to:

• Combat the COVID-19 pandemic 

• Safeguard the welfare of the people 

• Support business community 

The following key measures we announced: 

• Special deduction for rental discount given to SME tenants, is expanded to include rental reduction given to non-SME tenants and the special deduction will be extended for another three months until 30 June 2021 

• The tax relief for medical examination of RM1,000 is expanded to include COVID-19 screening tests 

• Special tax relief of up to RM2,500 for purchase of personal computer, smartphone or tablet from 1 June 2020 to 31 December 2020, will be extended for another year until 31 December 2021 

• The Wage Subsidy Program 3.0 announced in Budget 2021 for the tourism and retail sectors in which RM600 will be given to employees earning RM4,000 or less per month subject to a maximum number of 500 employees for a period of three months, is now enhanced to allow employers of any sectors operating in the Movement Control Order (MCO) states to apply for a subsidy of RM600 per employee for a period of one month for employees who earn RM4,000 or less per month subject to a maximum number of 500 employees 

• The Human Resource Development Fund (HRDF) levy exemption for six months, effective 1 January 2021 available to companies in the tourism sector and affected by the COVID-19 crisis, is now available to companies that are unable to operate during the MCO and Conditional MCO (CMCO) periods 

• Sales tax exemption of 100% given to the sale of locally assembled passenger motor vehicles and sales tax exemption of 50% given to the importation of passenger motor vehicles until 31 December 2020, is extended until 30 June 2021 

• A licensed taxi driver who owns a taxi which has been exempted from excise duty and sales tax must keep the taxi for a minimum period of 7 years before he can sell the taxi or transfer it for his private use, the minimum ownership period is shortened to 5 years effective from 1 January to 31 December 2021 

Our Prime Minister believes the resourcefulness, tenacity and resilience inherent in our true Malaysian spirit will serve us well in facing this great adversity in times of COVID-19 pandemic.

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