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Kenanga Research & Investment

Author: kiasutrader   |   Latest post: Thu, 28 May 2020, 9:14 AM

 

COVID-19: 2nd Economic Stimulus Package - Comprehensive rescue package with no one left behind

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● On 27 March, the government has announced a second stimulus package worth RM230.0b (15.5% of GDP) to weather the adverse impact from the COVID-19 pandemic

- This is on top of the first stimulus package (RM20.0b, 1.4% of GDP) announced on 27 February, bringing the total to RM250.0b.

- Out of the RM230.0b, 55.6% (RM128.0b) will be used to protect and sustain the livelihood of the citizens, 43.5% (RM100.0b) to support businesses and 0.9% (RM2.0b) to strengthen the economy.

- Of the total, direct government fund injection is about RM25.0b or 1.7% of GDP, of which RM3.5b was announced in the first round of stimulus.

- Relatively huge and comprehensive: the package is sizeable in value, exceeding the size of the fiscal stimulus deployed during the Asian Financial Crisis (AFC) and Global Financial Crisis (GFC), providing a much-needed immediate support to all segments of the economy, with emphasis on entities that are most vulnerable to the economic turbulence arising from the ongoing pandemic.

● Package is framed into three target areas, specifically the citizens, businesses, and economy

- Protect welfare of the citizens: ▪ Combat COVID-19: additional allocation provided to the healthcare sector to ensure sufficient physical and monetary resources to tame the rapidly spreading COVID-19. In conveying its gratitude to the frontline health and support workers, the government also announced an increase in their special monthly allowance from RM400 to RM600. ▪ Assist the B40 and M40: aimed to help the middle class and the poor to cope with the devastating social and economic impact left by the COVID-19 virus, mainly through direct cash transfers and reduction or deferment of fixed monetary obligations. Measures include six-month moratorium on loan repayments and one-off Bantuan Prihatin Nasional to households and individuals in the B40 and M40 income groups, ranging from RM500 to RM1,600.

- Provide breathing space for businesses: ▪ Ensure sufficient cash flow: aimed at reducing fixed cost and providing working capital for businesses that are affected by the 28-day Movement Control Order (MCO), supply-chain disruptions and slowdown in global demand. Measures include additional electricity bill discounts, relaxation of employers’ statutory obligation payments (e.g. KWSP, HRDF), wage subsidy scheme and loan guarantees by Danajamin, a debt restructuring and management agency.

▪ Assist the SMEs: additional allocation of RM4.5b disbursed through Special Relief Facility, Micro Credit Scheme and various others.

Source: Kenanga Research - 30 Mar 2020

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ahbah Pak Din is leading us to combat covid-19. I sokong Pak Din kuat kuat !

To combat covid-19, we must put on our hand gloves n punch covid-19 !

Hidup Pak Din !
30/03/2020 9:49 AM
ahbah We can also defeat covid-19 by staying at home.

If we go out, we will be attacked n killed by covid-19 ! I no joke here !
30/03/2020 9:51 AM


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