M40 not left out of PEMULIH, aid for all strata of society

KUCHING: The federal government’s wage subsidy programme, which has been extended under the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (PEMULIH) stimulus package, has greatly benefited Kapitan Tan Yit Sheng as a business owner in the M40 or middle 40 per cent income group.

His coffeeshop here, Hengki Kopitiam, was adversely impacted by the government-instituted Movement Control Order (MCO) to flatten the Covid-19 infection curve as dine-in is not allowed throughout the period.

However, with around 10 workers, the wage subsidy programme helped the Kuching Coffeeshop and Restaurant Owners Association committee member to retain his workers and keep his business running.

Tan said the impact of the pandemic was felt by the B40 or bottom 40 percent category immediately, but many did not realise that those in the M40 group also suffered.

“I always believe that the M40 group is the most neglected category; they are not considered wealthy and thus, shouldn’t be neglected,” said Tan.

The government has extended the Wage Subsidy Scheme under PEMULIH with an allocation of RM3.8 billion for employers to support up to 500 workers each, with the assistance of RM600 per worker for four months.

There will be no salary limit conditions for the scheme as the previous RM4,000 salary limit has been removed.

Tan said of all the benefits listed under the PEMULIH package, such as the loan moratorium, could really alleviate the burden of the M40 group, especially those having to take a pay cut as they would not need to worry about housing loans and car instalments.

“The loan moratorium has really helped me too. For the past one year or so, I haven’t had to pay housing and car loans. Given the current situation, if I had to settle the monthly loans as usual, I would not be able to stay afloat,” he said.

Asked if the aid provisions for the M40 group had been adequate, Tan said: “They are better than nothing.”

“This pandemic could not be avoided, and it’s not the fault of the people, the government or anybody. This is an international disaster, and nobody should be blamed for it.”

Tan believed that the government was doing its best to help the people.

For Raymond Ako, 40, a contractor, the PEMULIH package shows that the government cares for people from all walks of life who have been affected by the pandemic.

“Though many have pointed out that the M40 are sidelined, in reality, they are not. The M40 group which is categorized as the middle-income group is actually included in the package but many are unaware or overlooked it,” he said.

Raymond said among the assistance provided were the six months automatic approval of loan moratorium for everyone without any compound interest or penalty charge and special Covid-19 cash assistance.

“So the M40 group did not miss out of enjoying government aid. For myself, I benefited from the moratorium.”

As a contractor and businessman, Raymond said that he was also affected in terms of income reduction.

Aiding national recovery

The roll-out of PEMULIH is seen as a timely move by the public as the country continues to battle with the Covid-19 pandemic.

Announcing the RM150 billion package on June 28, this year, Prime Minister Tan Sri Muhyiddin Yassin said his government was attuned to the problems faced by the public and small businesses as public health authorities impose another round of movement restrictions.

He said the package would aim to sustain previous aid programmes, support businesses and ramp up vaccination and complement efforts to put the country back on the recovery path under the National Recovery Plan, currently in the first phase.

The six-month loan moratorium for individual borrowers across all income brackets is among the aid packages provided by the government under PEMULIH.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz had announced that banks would waive the compounded interest and penalty charges incurred during the six-month loan moratorium.

Under PEMULIH, a special Covid-19 assistance (BKC) was also introduced, and this will benefit 11.4 million recipients which include 8.4 million people in the B40 group and three million in the M40.

In addition, the extension of electricity bill discount of 10 per cent for another three months until December for badly affected economic sectors like hotel operators, travel and tourism agencies, retail premises and shopping complexes, convention centres, theme parks and local airline offices had also provided relief to tourism industry players.

Hope for business resumption

Sarawak Hotel Association of Malaysia (MAH) chairman John Teo said the discount programme, as announced by the Prime Minister, meant a lot to those involved in the hospitality sector, including in Sarawak.

“Of course, there are hotel operators as well as others in the tourism field categorised as M40, and we are very appreciative of the extension of this subsidy, as it would definitely help us during these challenging times,” he said.

In this regard, Teo said MAH acknowledged the challenges faced by its members, who were unable to operate their business at this time.

“Thus, the extension of assistance from the government is especially meaningful to us. We also hope that the pandemic will end as soon as possible.”

With the implementation of the National Covid-19 Immunisation Programme (NCIP), hopefully by September or October, the majority of businesses can operate again, he said, referring to the country’s target for herd immunity against Covid-19.

Do away with red tape, politicking

Meanwhile, freelance tour guide Danny Voon Yung Ming said he was initially unaware of the government’s assistance for the M40 group.

However, after being informed about it, the 37-year-old said he would apply for assistance schemes that he, as someone under the M40 group, would be eligible for such as the loan moratorium.

“My wife and I have two small children; she did try to apply for the Bantuan Prihatin Rakyat (BPR), but was not successful.”

Voon expressed the hope the government would make it easier for citizens to apply for aid and for speedier approvals so that they could make use of the assistance faster.

“This includes all income groups and businesses, as time is of the essence. As the people’s well-being is the focus of the assistance, help should reach the people faster and not be delayed by bureaucratic red tape and politicking.

“It doesn’t matter if they are B40, M40 or T20 (high-income) – the government should be fair to the people, who really need help during this difficult time and provide help quickly,” he added.

For more information about the various government’s assistance packages, visit https://belanjawan2021.treasury.gov.my/manfaat/