DAP: MCO necessitates another stimulus plan, RM45b minimum

 

The latest round of movement control order (MCO) has made another stimulus package necessary, said DAP secretary-general Lim Guan Eng.

Lim said while Finance Minister Tengku Zafrul Abdul Aziz does not expect the current round of MCO would hurt the country’s growth, reality speaks otherwise.

“Try telling that to those businesses in the tourism sector closing down or those suffering huge losses in the retail sector from the MCOs.

“Is Perikatan Nasional hinting that there will not be forthcoming government assistance under MCO 3.0?” asked Lim in a statement today.

Lim, a former finance minister, said the public and the economy now desperately need “life support” and mooted a RM45 billion direct fiscal injection to slow down retrenchments, job losses, business closures, and protect livelihoods.

Among others, Lim said the sum can be used as follows:

- RM12 billion for monthly welfare payments of up to RM1,000

- Automatic bank loan repayment moratorium, except for the top 20 percent of income-earners until the end of the national vaccination programme

- RM6.5 billion to extend the Pakatan Harapan-administration initiated Malaysia@Work hiring incentive scheme

- RM3.5 billion to buy laptops for students to participate in e-learning

- RM23 billion for businesses affected by recession and MCO in form of grants, subsidies, guarantees, and credit extension

On his proposal for a loan repayment moratorium, Lim said this has the potential to help eight million Malaysians and should be borne by banks that recorded a profit after tax of RM22 billion in 2020 and RM32.3 billion in 2019.

Lim warned that without another round of stimulus, jobs and livelihoods will be at stake, as well as the government’s projected 7.5 percent economic growth for this year.

The third round of nationwide MCO was imposed on May 12 and will expire on June 7 in view of the recent surge in Covid-19 cases.

Although most industries are allowed to operate as usual, schools remain closed and inter-district, as well as interstate border crossings, are barred.

Unlike the previous two nationwide MCOs, this latest one was not accompanied by a stimulus package.

Prime Minister Muhyiddin Yassin previously stated that the government was running out of money and Putrajaya had recently resorted to using funds from the National Trust Fund (Kwan). - Mkini