PUTRAJAYA: Prime Minister Muhyiddin Yassin has promised breathing room in the form of relaxed SOPs for the fully vaccinated.
“We will finalise (the details) and I will announce it as a total package,” he said in a special interview with the media here today.
Muhyiddin said the relaxation of movement restrictions include travel to Malaysia, interstate movement for spouses working separately, social activities, sports and dine-in at restaurants.
“I hope that this (relaxation) will give room or space, breathing space, for the people to live a slightly better life,” he said.
Muhyiddin announced last week that the easing of restrictions for individuals who have been fully vaccinated against Covid-19 would be decided at the National Recovery Council meeting within this week.
He said this would be in line with the opening of more economic sectors when states transition to Phase Two of the national recovery plan (PPN), especially in the Klang Valley.
Muhyiddin said the government remained firm with its decision to proceed with the PPN until the country is back on track, which he believed should not be too long from now.
The prime minister is scheduled to table the recovery plan at a special sitting of Parliament on Monday.
Enough money to pay for stimulus packages
Muhyiddin also said that the government still has fiscal space, though limited, to fund economic stimulus packages to continue helping the people.
He said the country’s economic management, as certified by international rating agencies, was still in good shape.
“Our trade value in May 2021 increased to RM170.9 billion, our trade surplus amounted to RM13.7 billion, our current account surplus is stable, our economic resilience is stable, (and) our medium-term growth prospects and fundamentals are strong.
“The government has proven through eight economic stimulus packages that the government does not hesitate to spend money to help the rakyat, (and) assist business sustainability,” he said.
Fitch Solutions Country Risk & Industry Research claimed recently that the government would not be able to fund the current stimulus package or other packages in the future due to various constraints facing the country at the moment.
The government has so far implemented eight economic stimulus packages worth more than RM530 billion, including more than RM80 billion in government fiscal injections, for the benefit of over 20 million individuals and 2.4 million businesses.
The prime minister said the government’s deficit was expected to exceed the 6% projection this year, taking into account the impact of the latest pandemic restrictions in Selangor.
“However, even though this deficit is large, we can push it aside for a while to ensure that the Malaysian economy recovers and the rakyat are protected.
“The growth forecast may have to be lowered slightly, but we are optimistic that when more people are vaccinated and more economic sectors can be reopened in Phase 2 and Phase 3 (of the recovery plan), then our economy will rebound,” he added.
Additional special grant for SMEs
Muhyiddin also announced that an additional Prihatin Special Grant (GKP 5.0) would be introduced to further ensure business sustainability, especially for the small- and medium-sized enterprises (SMEs).
He said the government was aware and agreed that SMEs are the engine of growth of the country’s economy, especially in generating jobs and they make up 98% of business entities in the country.
“The SME sector contributes 40% of gross domestic product (GDP) and it is a large amount, so it must be given space and allowed to do business and this includes Makcik Kiah who opens stalls, operates at night markets and so on,” he said.
Muhyiddin said the government has so far channelled RM6.1 billion to the SME sector through GKP 1.0, GKP 2.0, GKP 3.0 and GKP 4.0, and additional GKP.
He also said that since March 2020, the government had spent more than RM15 billion, involving 330,000 employers and companies and this has helped maintain more than 2.7 million jobs so far. - FMT
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