PM Announces Pemerkasa Plus: Extends Moratorium & Wage Subsidy

Prime Minister Tan Sri Muhyiddin Yassin has announced an RM40 billion aid package. This aid package will help the people and businesses through the nationwide lockdown, which will come into force on June 1.

In a televised address, he introduced the relief package titled Pemerkasa Plus. The relief package will channel RM5 billion in direct fiscal injection.

Extension of moratorium

In his announcement, Muhyiddin said that all B40 groups and those affected by job loss and micro-enterprises and SMEs unable to operate during the Movement Control Order (MCO) will be given a choice to obtain a moratorium approval automatically for three months.

He said they could also choose to pay back loans at a 50% lowered rate over six months. The moratorium will involve about five million borrowers with a value of RM30 million.

The prime minister also said that a loan repayment assistance and a moratorium worth up to RM30 billion will benefit more than five million borrowers. The moratorium will start in June.

He said that the government's discussions with Bank Negara Malaysia have resulted in the banking industry's full assurance and commitment to continue providing loan repayment assistance and moratorium.

According to him, the banking industry will provide more detailed information on the moratorium beginning tomorrow. He hoped that the announcement of the automatic moratorium could give some relief to borrowers of banking institutions.

Extension of Wage Subsidy Programme

The prime minister also said that the government will also extend the wage subsidy programme for one month, valued at RM1.5 billion. The programme will assist 2.5 million employees and 200,000 employers.

The government is also giving out an additional RM500 each in cash assistance for eligible micro SMEs

Power bill discounts

Muhyiddin also said the government will extend the 10% electricity bill discounts to affected sectors for three months until September. The sectors include:

Tour agencies,
Shopping malls,
Hotels,
Theme parks, and
Airline offices.

Moratorium on SSM fines

There will also be a moratorium on fines for people who are late in submitting statutory documents to the Companies Commission of Malaysia (SSM). The SSM will also exempt late payments for the renewal of business licences for micro-SMEs until December 31.

The SSM will also allow extensions for public companies listed on Bursa Malaysia to submit their financial statements and hold their annual meetings at a later date.

A moratorium for bus and taxi operators

The prime minister also announced that the government will also launch the Bus and Taxi Hire Purchase Rehabilitation Scheme. With an allocation of RM1 billion, the scheme is expected to start this week.

He said that the scheme will allow eligible bus and taxi operators to obtain a loan moratorium of up to 12 months. They can also extend the loan period up to 36 months.

He said he recommended the government agencies and companies to offer deferred loan repayments and discounts on business premises rental.

Muhyiddin also said that Mara will also resume the Mara Prihatin Peace of mind programme, which opens until July 31, 2021. The programme allows borrowers to apply online to reschedule education loan repayments or moratorium.

Mara entrepreneurs hit by the economic slowdown will receive a 30% discount on the rental of business premises from May until July 2021.

The prime minister said the government will improve the current law enabling relief measures and extend the protection for failure to service contractual obligations until December 31.

Source: FMT, The Edge Markets

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