Malaysia: Prihatin Rakyat (People Concerned) Economic Stimulus Package (PRIHATIN)

On 27 March 2020, Prime Minister YAB Tan Sri Dato’ Haji Muhyiddin Bin Haji Mohd Yassin announced a comprehensive economic stimulus package known as Prihatin Rakyat (People Concerned) Economic Stimulus Package or PRIHATIN, valued at RM250 billion. Of this, almost RM128 billion will be channelled to preserve people’s welfare, RM100 billion to support business, including Small Medium Enterprises (SMEs) and RM2 billion to strengthen the economy. Meanwhile, RM20 billion has been announced in the earlier stimulus package. 

Some of the key measures are as follows: 

• Deferment of monthly tax instalment payments for SMEs for 3 months commencing from 1 April 2020 

• Subsidise employees’ wages of RM600 per month for a 3-month period on the following conditions: 

- Employer suffering a 50% drop in revenue since 1 January 2020 

- Employee’s monthly salary below RM4,000 

- Employer shall not terminate the existing employees or instruct the employees to take unpaid leave 

- Employer shall not implement pay cut on existing employees 

• Waiver of Human Resource Development Fund (HRDF) contribution for 6 months for all sectors effective 1 April 2020 

• All banks are required to provide financial relief in the form of payment moratorium comprising restructuring and rescheduling loans for affected business and individuals 

• Takaful/insurance policyholders affected by the Covid-19 outbreak are allowed to defer payment of premiums for up to 3 months 

• A one-off cash assistance will be given to the following group: 

- RM1,600 for households with monthly income of RM4,000 and below

- RM1,000 for households with monthly income between RM4,001 and RM8,000 

- RM800 for single Malaysians aged 21 and above with monthly income of not more than RM2,000 

- RM500 for single Malaysians aged 21 and above with monthly income between RM2,001 and RM4,000 

• RM200 one-off cash assistance to students of higher education institutions 

• Electricity bill discounts ranging from 15% to 50% for all sectors for a period of 6 months (April to September 2020) 

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