Highlights: Permai Assistance Package

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KUCHING (Jan 18): Tan Sri Muhyiddin Yassin has today unveiled the RM15 billion ‘Perlindungan Ekonomi dan Rakyat Malaysia’ (Permai) assistance package to protect the economy and the people, following the declaration of Emergency to fight Covid-19.

The prime minister said in a televised address that there were 22 initiatives under the new assistance package.

The following are the highlights:

Permai’s main objectives:
1. Combating Covid-19 outbreak,
2. Safeguarding the welfare of the people, and
3. Supporting business continuity.

COMBATING COVID-19 OUTBREAK 
Additional allocation of RM1 billion, comprising RM800 million for Ministry of Health and the balance for the National Security Council and other relevant agencies. Allocation focuses on supplies, including additional reagents and screening kits as well as PPE equipment,specifically for healthcare frontliners.

Initiative 1: Implementing the COVID-19 Vaccination Programme
> The Government has signed three agreements with vaccine producers, and is expected to receive the first batch of vaccines by the end of February. A total of RM3 billion allocated for this purpose.

> First batch expected to be vaccinated by early March. Target of vaccinating more than 80 per cent of population or about 27 million people to be realised by first quarter 2022.

> Special Muzakarah Committee of the National Council for Malaysian Islamic Affairs has decreed that the COVID-19 vaccine is allowed, and is a necessity for specific groups.

Initiative 2: Strengthening the National Healthcare Sector
> The Government will recruit an additional 3,500 healthcare personnel who will start at the end of this month, with an additional allocation of RM150 million. They include assistant medical officers, paramedics, laboratory technicians and nurses.

> RM500 one-off provision under Budget 2021 for healthcare frontliners and RM300 to other frontliners will be paid in the first quarter of this year.

> Existing special monthly allowance of RM600 to healthcare frontliners and RM200 to other frontliners will continue until the COVID-19 pandemic is over.

Initiative 3: Enhancing Cooperation with Private Hospitals
> Private hospitals to receive and treat both Covid-19 and non-Covid-19 patients to help alleviate the strain on the public healthcare system. RM100 million allocated for this purpose.

Initiative 4: Stepping up Testing of Employees
> Employers to tighten SOPs, improve their foreign workers’ accommodation and movement control as well as increase screening of employees.

> SOCSO fully bears the cost of Covid-19 test of registered foreign workers in red zones to identify possible clusters at workplace. From 1st December, 2020 to 17th January, 160,982 foreign workers had undergone screening for Covid-19 under this programme.

> Scope for tax relief relating to full health screening expenses, which was increased from RM500 to RM1,000 in Budget 2021, now expanded to also cover Covid-19 screening.

SAFEGUARDING RAKYAT’S WELFARE 
Initiative 5: Accelerating Bantuan Prihatin Rakyat Assistance
> Final payment of the Bantuan Prihatin Nasional or BPN 2.0 will be brought forward to January 21, 2021, onwards. 11.1 million recipients will receive a total payment of RM2.38 billion.

> For phase one of Bantuan Prihatin Rakyat or BPR, the first instalment will involve more than 8 million recipients. Households earning up to RM5,000 per month will receive RM300 each while for those under single category, earning up to RM2,000 per month will receive RM150.

 

Initiative 6: Strengthening Welfare Programmes
> Social Welfare Department (JKM) will implement a Food Basket Programme immediately to provide essential food items worth RM100 for each eligible household, involving a total allocation of RM50 million.

> Allocation of RM25 million under the GLIC/GLC Disaster Relief Network programme as a matching grant with government-linked companies for social initiatives. This includes the provision of community assistance, including to the elderly, homeless, the disabled and flood victims.

Initiative 7: Continuing the Moratorium and Loan Instalment Reduction
> Moratorium facility, including extension of the moratorium and restructuring of loan repayment will continue to be offered by banks as announced previously. For flood affected states, 15 banks have offered the loan repayment moratorium.

> For borrowers facing difficulties in dealing with banks, Bank Negara Malaysia and the Credit Counselling and Debt Management Agency (AKPK) are ready to assist and advise borrowers through the telephone or online.

Initiative 8: Enhancing the EPF i-Sinar Programme
> To further enhance the i-Sinar facility, especially for those facing challenges due to the MCO and floods, EPF will provide an advance of up to RM1,000 from the amount applied under the i-Sinar Category 2 facility.
> The i-Sinar Category 2 advance withdrawal process simplified as members need to only provide a self-declaration that they meet the prescribed criteria and submit the supporting documents online.

> EPF to facilitate the advance payment, which will commence on January 26.

Initiative 9: Extending the Special Tax Relief on the Purchase of Mobile Phones, Computers and Tablets
> Special tax relief of up to RM2,500 on the purchase of mobile phones, computers and tablets which expired last year, extended for another year until the end of 2021.

Initiative 10: Extending the Provision of Free Internet Access
> RM500 million facility for provision of free 1 Gigabit data for public extended until end of April 2021.

> Special subscription package for students sitting for SPM and STPM will be extended to all students of higher learning institutions until end of April 2021.

Initiative 11: Extending the sales tax exemption on passenger vehicles
> To boost the sales of passenger vehicles,the Government recently announced extension of sales tax exemption under Penjana package until 30 June 2021.

Initiative 12: Extending the Moratorium Period for PTPTN Borrowers
> PTPTN borrowers can apply for a three-month loan repayment moratorium. Application for can be made until 31 March 2021.

SUPPORTING THE BUSINESS CONTINUITY
Initiative 13: Improving the Wage Subsidy Programme
> Wage Subsidy Programme 3.0 under SOCSO will be enhanced whereby all employers operating in the MCO states will be eligible to apply, irrespective of sector.

> For a period of one month, eligible employers will receive a wage subsidy of RM600 for each of their employees earning less than RM4,000. In addition, the wage subsidy limit of 200 employees for each employer will be increased to 500 employees. This initiative involves an additional allocation of RM1 billion which is estimated to benefit 250,000 workers employing more than 2.6 million workers.

> For those who suffered loss of employment during the MCO, the Government has relaxed Employment Insurance System program or SIP PRIHATIN conditions. Employees who do not meet the minimum contribution conditions, or whose contract was not extended after having been renewed for at least 3 times previously, can apply for the SIP PRIHATIN assistance of 30 percent of their monthly salary for a period of 3 months.

> RM24 million allocated to fund the full contribution of delivery riders under SOCSO’s Self-Employment Social Security Scheme. To date, almost 32,000 applications have been received.

Initiative 14: Continuing the Prihatin Special Grant
> Prihatin Special Grant Plus assistance expanded to cover 500,000 SMEs in the seven MCO states with a payment of RM1,000 each, while 300,000 SMEs in other states will receive RM500 each. The expansion of this additional special grant or the PERMAI Prihatin Special Grant, involves an additional allocation of RM650 million.

Initiative 15: Providing One-Off Financial Assistance to Taxi and Bus Drivers
> One-off financial assistance of RM500 to 14,000 tourist guides as well as 118,000 drivers of taxis, school buses, tour buses, rental cars and e-hailing vehicles, with an additional allocation of RM66 million.

> Exemption from excise duty and sales tax for the purpose of transfer, disposal and for private use of taxis, provided the vehicle is owned for seven years, reduced to five years,
effective from 1 January to 31 December 2021.

Initiative 16: Accelerating the Implementation of Microcredit Schemes
> Government will expedite the implementation of microcredit schemes including implementation of RM1 billion microcredit facilities include soft loans amounting to RM390 million by Bank Simpanan Nasional, RM350 million by Agrobank and RM295 million by TEKUN.

Initiative 17: Supporting and Boosting Online Businesses
> Implementation of SME and Micro SME e-Commerce Campaign and Shop Malaysia Online campaign, with allocation of RM300 million accelerated.

Initiative 18: Enhancing the Danajamin PRIHATIN Guarantee Scheme
> Under the PENJANA package, the Government announced the Danajamin Guarantee Scheme, or SJPD amounting to RM50 billion, to support the private sector’s growth and boost the country’s economy.
The Government will:
First: Increase the maximum financing from RM500 million to RM1 billion;
Second: Expand the scope of financing to cover working capital with a guarantee period of up to 10 years; and
Third: Allow foreign-owned companies operating in Malaysia to also obtain the SJPD guarantee provided that Malaysian employees account for at least 75 percent of their workforce.

Initiative 19: Rescheduling and Extending the Moratorium Period for MARA Loans and MARA Premises Rental
> MARA will continue MARA PRIHATIN Peace of Mind 2.0 programme, where borrowers can apply to reschedule repayment of education and business loan facilities moratorium until March 31, 2021.

> MARA to provide 30 percent rental discount on business premises for six months from November 2020 to April 2021.

> Special tax deduction to any company that provides a reduction of rental on business premises to SMEs of at least 30 percent from the original rental rate from 1 April 2020 to 31 March 2021.
> Special deduction expanded to cover the rental reduction also given to non-SMEs until 30 June 2021.

> Human Resources Development Fund will exempt employer levy for companies that are unable to operate during the MCO and CMCO periods.

Initiative 20: Continuing Electricity Bill Discounts
> Special discount of 10 per cent on electricity bills from January to March 2021 to six business sectors nationwide, comprising hotel operators, theme parks, convention centres, shopping malls, local airline offices, and travel and tour agencies.

> Electricity rebates for all TNB users, domestic and non-domestic at a rate of 2 sen per kilowatt-hour, which is equivalent to a reduction in electricity bills of up to 9 percent for a period of 6 months.

Initiative 21: Introducing a Bus and Taxi Hire Purchase Rehabilitation Scheme
> Syarikat Jaminan Pembiayaan Perniagaan will introduce a Bus and Taxi Hire Purchase Rehabilitation Scheme, providing a 50 per cent guarantee on financing from hire purchase and leasing companies will be provided for selected buses such as sightseeing buses,
and taxis.

> Bus and taxi operators can restructure their financing and enjoy a 12-month moratorium and lower monthly repayments. A guarantee of RM1 billion will be provided for this purpose.

Initiative 22: Extending the Temporary Measures for Reducing the Impact of Covid-19 Act 2020
> Government extends Temporary Measures for Reducing the Impact of COVID-19 Act 2020, or Act 829 effective period of inability to perform contractual obligations to 31st March 2021.

For more information on 2021 Budget initiatives and assistance, go to http://belanjawan2021.treasury.gov.my/manfaat