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Malaysian government announces RM40 bn stimulus package

Malaysia Sitmulus package_IFM_Image
As the country prepares to go into lockdown in order to spread the curb of the virus, Prime Minister Muhyiddin Yassin announced the news of the stimulus package

As theCovid-19 cases spike in Malaysia, the government, in order to avoid a deadly second wave, has decided to go into lockdown to curb the spread of the virus. To make sure that the citizens don’t go through any kind of hardship during the lockdown, the government announced a stimulus package of RM40 billion for the economy of the nation. Out of the entire package, RM5 billion will go for a direct fiscal stimulus by the government in order to soften the blow of another lockdown.

This news was announced by Prime Minister Muhyiddin Yassin just hours before the announcement of some tough restrictions made in order to stop the spread of this deadly virus. The latest wave is the worst case of infection the country has seen since the start of this pandemic. He told the media, “As I have stressed before, the closure of economic sectors will have a huge impact on the nation’s economy and the lives of the public. I want to be frank that the government has limited fiscal space to spend at this moment. Nonetheless, the government will do its utmost to ensure a balance between lives and livelihood and ensure opportunities to earn a living for your beloved families.”

The stimulus is called Pemerkasa Plus, and it includes RM2.1 billion in cash aid of up to RM2,500 for households that have a monthly income of RM5,000 or less. The latest lockdown will allow only 17 economic sectors to operate with a strict work-from-home rule set by the government. Reports stated that 1,000 people died in May alone, with over 160,000 new patients reported.

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