PM unveils short-term economic recovery plan

Putrajaya has announced a comprehensive economic recovery plan which will involve wage subsidies, upskilling, tax holidays for investors, grants and other incentives.

In a televised address today, Prime Minister Muhyiddin Yassin, these measures were contained in the Plan Jana Semula Ekonomi Negara or "Penjana" for short, which will involve RM10 billion in direct fiscal injection. 

He said the measures were necessary were vital as Malaysia and the global economy was experiencing unprecedented economic contraction and domestic unemployment was projected to reach 5.5 percent by end of 2020.

Muhyiddin did not announce whether the conditional movement control order (MCO) would end on June 9 as scheduled.

The conditional MCO is enforced by means of gazette which barred certain economic, social and educational activities from taking place.

Below are the salient points:

• Govt will help every trader via several measures.
• RM1 billion tourism financing scheme to assist tourism sector.
• 300,000 disabled people (OKU), single mothers registered with Welfare Dept eligible to receive one-off payment of RM300 each before Aidiladha.
• Short Term Economic Recovery Plan (Penjana) is a fast-paced step to rebuild and revitalise the economy in the short term.
• Allocations will be used for training sessions, subsidies and sales assistance spearheaded by MDEC together with selected e-commerce platforms.
• Gov't introduces financial incentives for companies to offer jobs to youths and the unemployed.
• Govt allocating RM75 million to help the GIG economy.
• In an effort to encourage the field of freelancing, MDeC will allocate RM25 mln for the Global Online Workforce (GLOW) programme
• Government will issue Prihatin Sukuk to help rebuild the nation's economy
• Gov't has allocated RM9 billion to benefit three million workers in dealing with unemployment.
• Wages Subsidy Programme to help employers extended three more months.
• Grants in the form of matching grants worth RM50 million will be allocated to gig economy platform for workers who contribute under SOCSO Employment Disaster Scheme & EPF i-Saraan.
• Government will form the National Recruitment Task Force to be jointly chaired by the Finance and Human Resources Ministers.
• 12.7 million or 83.5 per cent of workers back at work in June, as compared to 10.2 million or 67.2 per cent on May 17.
• Of RM35 billion allocated under the National Economic Revitalisation Plan, RM10 billion is a fiscal injection from the government.
• The more comprehensive Government Economic Recovery Plan will focus on six key points to reinvigorate national economic development.
• The govt's Economic Stimulus Package saved 2.4 million jobs.
• The National Economic Revitalisation Plan features 40 initiatives worth RM35 billion to boost sustainable economic recovery.
• Govt measures and people's discipline led to 80 per cent success in Covid-19 cases fully recovering.

- Mkini