Harapan: B40 recipients should get RM2k to help cushion Covid-19 impact

The government should pay out a total RM2,000 in Bantuan Sara Hidup (BSH) to B40 recipients to help cushion the shock from the Covid-19 pandemic, urged Pakatan Harapan.

In a media statement signed by PKR secretary-general Saifuddin Nasution Ismail, Amanah’s secretary-general Hatta Ramli and DAP Johor chairperson Liew Chin Tong, Harapan said this was among three extraordinary measures needed to help the less privileged in Malaysia to weather the effects of the nationwide movement control order. 

While lauding Bank Negara’s announcement of an automatic loan moratorium for individuals and corporations for up to six months, Harapan said this does not help segments of the population who rent their homes or small businesses for whom wages represent the highest cost.

“The Majlis Setiausaha Pakatan Harapan has suggested that RM1,000 for March and RM1,000 for April be given to all Bantuan Sara Hidup recipients (B40 households) to cushion the impact of the Covid-19 shock.

“Cash transfer is the quickest way to inject cash into the hands of low-income households. This would be pertinent to sustain those who are in the informal sector, which doesn't necessarily provide for a regular income, and who make up a big segment of our workforce.

“Even those with a regular income in the formal sector are hurt, hence the situation is dire for those in the informal sector. Their plight should be addressed immediately to prevent the slide into mass hunger and social unrest.” 

Harapan said the second extraordinary measure needed was for the government to increase in size and expand its the provisions to ease cash flow for small businesses, as well as make it interest-free.

“This will ensure SMEs can maintain their workforce and survive for as long as the challenging economic conditions persist,” the opposition coalition said.

It also pointed to the Malaysian Institute Economic Research’s latest report calling for the government to make up for all income lost during this crisis, with the total household income loss from the crisis at RM95 billion, as well as calling for the government to issue an additional stimulus of RM75 billion on top of the first package of RM20 billion.

“However, some of the measures announced in the first package are rendered ineffective by the movement control order. Moreover, initial estimates coming out of other affected countries point to a higher impact on the GDP. China, for example, has seen its GDP fall around 13 percent for January and February.

“We also need to take into consideration the forecast of many, including JP Morgan, that our infection curve will only peak in mid-April to around 6,300 cases.

“Hence, we call for a larger additional stimulus, so that the total amount is closer to RM150 billion, or 10 percent of Malaysia’s annual GDP.

“Globally, countries like the United States and Germany are adopting the same estimation, and are rolling out fiscal stimulus packages of around 10 percent of their GDP.” 

Harapan also said the third extraordinary step should be for the government to direct national electricity company Tenaga Nasional, telecommunication (telco) firm Telekom Malaysia and other telcos, to provide a six-month automatic and general moratorium for accumulated bills and the usage over the next six-month period, and to allow for gradual repayment after the six months.

“This measure will help households and businesses to focus on the movement control order and the subsequent recovery over six months.”  - Mkini