Economic Stimulus Package 2020 (Prihatin Rakyat) - Part 2 : Protect welfare and well-being of people in Malaysia
Note: This is continuation from Part 1.
Following the global COVID-19 pandemic which has made a significant impact to the economy, our government has announced a comprehensive Economic Stimulus Package also known as Prihatin Rakyat Economic Stimulus Package. The allocated amount of RM 250 billion is 3 times the total allocated during 2009 financial crisis, aimed at helping the people and businesses to pull through these unprecedented challenging times.
The allocation is based on the three (3) main thrusts:
PROTECT WELFARE AND WELL-BEING OF PEOPLE IN MALAYSIA
1. Cash payout under the National Caring Aid (Bantuan Prihatin Nasional) will be given to the B40 and M40 group:
For those who are not yet registered, new application can be made from 1 April 2020 through MIRB official website www.hasil.gov.my.
2. RM 200 cash payout to students of higher education institutions including Matriculation, Community College, Polytechnic, IPTA and IPTS.
3. Deferment of payment of life insurance premiums and family takaful contributions
Life insurers and family takaful operators will allow affected policyholders and takaful participants an option to defer the regular premium/ contribution payments due under life insurance policies and family takaful certificates for three (3) months without affecting the policy coverage. This flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or other means that maintain the policy / certificate intact during the deferment period. This option will be available from 1 April 2020 until 31 December 2020.
4. Takaful / Insurance companies will bear COVID-19 screening test cost of up to RM 300 per policy holder.
5. Monthly allowance of RM 600 to healthcare front-liners (doctors, nurses, etc.) w.e.f. 1 April 2020 until the end of outbreak.
6. Monthly allowance of RM 200 to other front-liners (army, police, customs, civil defense, The People;s Volunteer Corps (RELA)) w.e.f. 1 April 2020 until the end of outbreak.
7. Daily allowance of RM 50 for up to 14 days under mySalam is extended to individuals quarantined as patients under investigation. This applies under B40 group.
8. Tax exemption on pre-retirement withdrawals under Private Retirement Scheme (PRS):
Currently, individuals participating in PRS are allowed to make withdrawals from sub-account A only upon reaching the retirement age of 55 years old and sub-account B once a year. Withholding tax at rate of 8% will be imposed for early withdrawal. Under this economic package stimulus, individuals are allowed to make withdrawal of up to RM 1,500 during the period from 1 April 2020 to 31 December 2020 from sub-account B. No withholding tax will be imposed on the withdrawn amount.
9. Free internet for all users from 1 April 2020 until the end of the Movement Control Order.
10. Cash payout of RM 500 for each of the public servants (including staff under contract) below grade 56 and retirees.
11. Cash payout of RM 500 to each e-hailing driver.
12. Six (6) months rental waiver for B40 individuals staying in Projek Perumahan Rakyat (PPR) and Projek Perumahan Awam (PPA)
13. Electricity bill discounts ranging from 15% to 50% for all sectors for a period of six (6) months (i.e. from April 2020 to September 2020):
Welcome to Letter Box! A tiny space with lots of big ideas to share with everyone!
The Mail Room