PEMULIH Assistance Package 2021

Announced on 28 June 2021

Foreword

With the full lockdown having been extended until further notice, the Prime Minister announced a RM150 billion aid package to help the people and businesses. This economic package is aimed at directly benefitting people and businesses that have been seriously impacted by the lockdown.

Through the Special Covid Aid (BKC) programme, direct financial aid will be given not only to the B40 households but also to the M40 households. All individual borrowers and business owners will be able to receive a six-month moratorium from banks without having to fulfill any conditions such as loss of income or employment due to the pandemic. However, a blanket moratorium will be more welcomed to avoid the hassle of applying for the loan moratorium.

For businesses, more funds will be channeled into the Prihatin Special Grant (GKP) while improvement is made to the previous wage subsidy programmes to remove the salary limits. Special cash aid will also be provided for businesses in the creative industry, childcare operators, registered canteen operators, operators of sports arenas and the disabled who have lost their jobs.

Overall, this aid package has addressed the needs of most Malaysians affected economically by the pandemic and the prolonged lockdown. It is hoped that the daily cases will dip below 4,000 and the lockdown curbs can be gradually loosened in the second phase.

PEMULIH Assistance Package 2021: Key Highlights at a Glance

B40 Group
B40 households and B40 singles will be given a one-off cash assistance of RM800 and RM200 respectively.

Hardcore Poor
The hardcore poor households and singles will be given a one-off cash assistance of RM1,300 and RM500 respectively.

M40 Group
The M40 households and M40 singles will be given a one-off cash assistance of RM250 and RM100 respectively.

Electricity Bill Discounts
10% electricity bill discounts will be provided to affected economic sectors from October 2021 to December 2021.

Prihatin Special Grant (GKP)
An additional assistance of RM1,000 will be given under the GKP 4.0 programme.

Wage Subsidy Programme
Employers can now apply for the Wage Subsidy Programme 4.0 even if their employees earn more than RM4,000 a month, at a rate of RM600 per employee and limited to 500 employees per application.

Rental Discount
An extension of the special deduction on rental discount of at least 30% will be given by landlords of private business premises until 31 December 2021.

Loan Moratorium
All individual borrowers can get a 6-month moratorium on their bank loans, with no conditions attached. SMEs will also be eligible but subject to the financial institutions’ approval.

Highlights - Employers & Businesses

Human Resource Development Fund (HRDF) levy
A 2-month exemption of HRDF will be given to companies which are unable to operate during the Movement Control Order (MCO).
Local Arts and Creative Industries
RM100 million will be allocated to support the local arts and creative industries.
School Canteen Operators
RM1,000 aid will be given to school canteen operators.
Nurseries and Kindergarten Operators
A one-off special assistance of RM3,000 will be given to nurseries and private kindergarten operators.
Public-Private Partnership COVID-19 Industry Immunisation Programme (PIKAS)
RM150 million will be allocated to companies which implement the PIKAS.
Sports Industry Operators
A one-off financial assistance amounting to RM3,000 will be given to sports industry operators.
Majlis Amanah Rakyat (MARA) Loans
Entrepreneurs with loans from MARA will enjoy a three (3) month moratorium or extend their loan period of up to 36 months.
MARA Premises
The 30% discount for tenants at Mara premises will be extended for another five (5) months until December 2021.
Travel Agencies
A one-off assistance of RM3,000 will be given to travel agencies during the Phase 3 of National Recovery Plan.
Purchase of COVID-19 Vaccine
Employers registered under the Human Resources Development Corporation (HRD Corp) will be eligible to use the remaining current levy of up to 10% for the cost of management and purchase of COVID-19 vaccine.
Vaccination Centres (PPVs)
RM200 million will be allocated to increase the number of PPVs, upgrade existing PPVs, implement drive-through PPVs, mobile PPVs and outreach home-to-home programmes.
Allocation for Vaccines
RM400 million will be allocated to increase the supply of vaccines to cover 130% of population.
Program Pemerkasaan Pendigitalan Usahawan Kecil (PUPUK)
RM300 million will be allocated to SMEs and Micro SMEs for the implementation of PUPUK.
Tourism Sector
Deferment of monthly income tax instalment payments will be granted. Exemptions of tourism tax and service tax will be given to hotel operators until 31 December 2021.
Tax Deduction on Vaccination Facilities
A tax deduction will be given to the employers for expenditure incurred on the cost of equipment and the cost for setting up PPVs.
SMEs and Micro Enterprises
An additional RM2 billion fund will be provided by Bank Negara Malaysia (BNM) to SMEs and micro enterprises.
SME Digitalisation Grant
SME Digitalisation Grant of up to RM5,000 for the purchase of systems and subscription of digital platforms.
Microcredit Financing Programme
Additional funds of up to RM1.1 billion will be provided by AgroBank, Bank Simpanan Nasional and TEKUN under the microcredit financing program.

Penjana Kerjaya 3.0
The salary eligibility limit will be relaxed from RM1,500 to RM1,200 for the Malaysianisation programme and the contract period will be relaxed from 12 months to 6 months for employment of disabled, ex-convicts and those aged 50 and above.

Highlights - People

Aid for Loss of Employment
RM500 will be given to the employees who lost their source of income based on the database of EPF or SOCSO in year 2021.
Job Seeker Allowance
A Job Seeker Allowance of RM300 will be given to non-SOCSO contributors such as new graduates, school leavers and informal sector workers.
Food Basket
RM300,000 will be allocated to each Member of Parliament as food basket assistance to help affected groups in their respective constituencies, with RM10 million to be allocated specifically for the Orang Asli community.
Internet Facilities
Telecommunication service providers will also be extending the provision of free internet data of 1 Gigabyte until 31 December 2021.
Subsidies for Cooking Oil
RM1 billion will be allocated as subsidy to control the price hike of cooking oil.
Mental Wellbeing
RM15 million will be allocated to non-government organisations to address social issues such as mental health and other social problems at the community level.
Electricity Bill Discounts
A 5% to 40% discount on electricity bills will be given for domestic users from July 2021 to September 2021.
Aid for the Disabled
A financial assistance of RM500 per person for a period of 3 months will be given to the disabled who have lost their jobs or are unemployed and are not recipients of the existing Disabled Workers Allowance.
EPF Withdrawals
EPF contributors will be allowed to withdraw funds up to RM5,000 at a rate of RM1,000 a month for the next five (5) months under the i-Citra programme.
JPA Education Loan
Deferment of repayment for Federal Education Loans under JPA and payment of compensation claims for Federal Scholarship recipients for up to 6 months.
MARA Education Loan
Deferment of repayment for MARA Education Loan will be given for a period of 3 months or reschedule of loan repayment amount with a monthly instalment as low as RM100 for 12 months.
National Higher Education Fund Corporation (PTPTN) loans and Skills Development Fund Corporation (PTPK) Loan
Moratorium on PTPTN loans and PTPK loan for a period of three (3) months.
Insurance Premiums and Takaful
Deferment of payment for insurance premiums and takaful contributions (opt-in) will be extended until 31 December 2021.
Allowance for Healthcare Volunteers
Healthcare volunteers who are working at vaccination centres and quarantine centres for more than twelve (12) hours daily will be given an allowance of RM100 per day starting from June 2021.

Allowance for Healthcare Frontliners
Healthcare frontliners will be given an allowance of RM600 per month for a period of six (6) months.

Subsidy on Taxi Fares and
e-hailing Services
OKUs and elder citizens will be given a one-off cash assistance of RM30 to subsidise taxi fares and e-hailing services incurred by them to the vaccination appointments.