The Prime Minister on Wednesday announced this stimulus, which would focus on 20 strategic initiatives to boost economic growth, support business, and continue targeted assistance to the people and sectors that are still affected. — Bernama photo
KUCHING: Initiatives under the Strategic Programme to Empower the People and Economy (PEMERKASA) worth RM20 billion, along with a new fiscal injection by the government amounting to RM11 billion, will be the panacea needed to kickstart Malaysia’s economy in 2021.
Prime Minister Tan Sri Muhyiddin Yassin on Wednesday announced this sixth stimulus package, which will focus on 20 strategic initiatives to boost economic growth, support business, and continue targeted assistance to the people and sectors that are still affected.
“Our country is currently in the fifth stage of the 6R Strategy (Resolve, Resilience, Restart, Recovery, Revitalise, and Reform) of the Comprehensive Economic Recovery Plan, namely, ‘Revitalise’ or empower the economy.
“At this stage, the economic recovery strategy is focused on efforts to boost and revive economic activity, or jump start the economy,” he said during the announcement.
The PEMERKASA package aims to jumpstart the economy with four focus areas, which are to control the spread of Covid-19, accelerating the economic recovery, strengthening Malaysia’s competitiveness, and ensuring inclusivity.
Given that the economic recovery is dependent on vaccine rollouts, UOB senior economist Julia Goh and economist Loke Siew Ting commented that the package includes efforts to accelerate the national vaccination program in order to reach herd immunity earlier by end-2021 against its previous targeted time by February 2022.
“The government said that with the vaccine program underway, there would be a more targeted Covid-19 containment strategy to alleviate the negative effect on the economy.”
MIDF Amanah Investment Bank Bhd (MIDF Research) in its analysis believed that the PEMERKASA will strengthen the economic recovery and should benefit sectors that are strongly tied to economic performance.
More grants and financing options made available under PEMERKASA such as Geran Khas Prihatin 3.0, one-off grants, automation/digitalisation-driven grants, additional allocation for micro credit and reduction in financing rates by government agencies, among others, will further assist the recovery process particularly for SMEs which are substantial contributors to Malaysia’s gross domestic product.
“By providing conducive business environment with more clarity in the economy will generally lend support to the labour market recovery as employers could start hiring again on the anticipation of better outlook.”
Furthermore, the PenjanaKerjaya 2.0 programme under PERKESO has been expanded to include gig jobs for the entitlement of temporary recruitment incentives.
Also, the introduction of POS-preneur financing program by TEKUN for the purpose of repairing vehicles and purchases or vans/trucks as an income mean for applicants who wants to venture in delivery/distribution businesses could provide further relief to the struggling labour market.
MIDF Research added that the extension of wage subsidy for a more targeted sectors including tourism, trade wholesale and retail, gym and spa sports center will lessen the risks of unemployment which are more prevalent in these sectors amid MCO and crossstate and cross-border restrictions.
“We foresee unemployment rate to average at 4.3 per cent this year, a mild recovery from 2020, supported by all these measures.”
East Malaysian businesses welcome sixth package
KUCHING and KOTA KINABALU: The sixth stimulus package named Strategic Programme to Empower the People and Economy (PEMERKASA) will help further improve micro business in Sabah and Sarawak.
Sabah Small-Medium Bumiputera Women Entrepreneur Industry Association (IKSnita) president Datuk Dayang Khatijah Bachtiyal said many businesses have benefited since the first Geran Khas Prihatin (GKP) financial assistance amounting RM3,000 since the first Movement Control Order (MCO) was implemented.
The latest PEMERKASA stimulus package will also provide qualified Micro-SME to reduce their financial burden by continuing the grant, but this time by RM1,000.
“We welcome all these packages with hopes we can continue to survive or at least, to re-start after some industries allowed to open.
Datuk Dayang Khatijah Bachtiyal
“After a year struggling with the pandemic, many have lost their businesses. However, many women entrepreneurs in Sabah made it. Today we are in a recovery stage and I believe the injection of another RM1,000 will help in some ways.
“However, delivery or implementation must be given full attention to all stimulus packages to allow all target groups are fully benefited, and no one left behind,” she said to The Sunday Post.
Dayang Khatijah said entrepreneurs must be ready to face any future challenges.
“I am thankful for the effort by the current government for looking after our entrepreneurs welfare. They feel what we feel and all packages announced for the past one year has motivate us to continue our journey in entrepreneurship,” she said.
Thumbs up to SME aid measures
Datuk Bonipasius Bianis
MEANWHILE, Kadazandusun Chamber of Commerce and Industry (KCCI) president Datuk Bonipasius Bianis said 20 initiatives under PEMERKASA focussing on five areas will help Sabah entrepreneurs or small and medium-sized enterprises (SMEs), especially initiative 4, 5, 6, 8, 15 and 17.
“These are very good initiative that give direct and indirect impact to all entrepreneurs. Though initiative 4 have a very good impact to all contractors under G1 to G4, we are wondering what are available opportunities for G5 to G7 contractors.
“With reference to the financial support worth RM1.5 billion through BSN, TEKUN, MARA and SME Corp, which is for the whole country, out of this we feel that Sabah should be allocated certain percentage for local Sabahan entrepreneurs or SMEs.
“We should not be competing with entrepreneurs or SME from west Malaysia. This allocation should be manage in Sabah so that we can avail to it,” he said.
Sabah calls for relook into specific issues
Anita Mohamed
SABAH Entrepreneurs Chambers of Commerce (DPUS) president Anita Mohamed has called on the government to reconsider certain aspects that can be heightened for Sabah businesses.
Under the PEMERKASA package, Companies Commission of Malaysia (SSM) will provide free business registration for the B40 group and full-time students in institutions of higher learning intending to become entrepreneurs.
However, Anita said it must be relooked in Sabah’s context because this facility is difficult to be implemented in Sabah due to the licensing process subject to the supervision of local authorities (PBT).
“This has been our ongoing issue that need to be addressed because Sabah is having some difficulties in this facility as we need to open trading licence under PBT. Getting a trading licence under PBT is another problem because we need physical shop for it, and this means bigger costs
“If we want to be on par with our counterparts in the peninsular, SSM and trading issues must be given more attention so that we can benefit from this stimulus package,” she said.
Sheda Kuching: Measures introduced to help businesses
Datuk Sim Kiang Chiok
SHEDA Kuching Branch chairman Datuk Sim Kiang Chiok applauded PEMERKASA for its further extension of contractual obligation from March 31, 2021 till June 30, 2021.
“This will be most welcomed by businesses to save the time and more cost in the administration of various contracts in Malaysia,” he told The Sunday Post.
“The return of the oil and gas subsidies are also appreciated to ensure that our cost of living in Malaysia would still be manageable when oil prices were expected to rise due higher demand with more world economy resumption or operating at a higher output.”
However, Sim highlighted the wage subsidy introduced under Permai and further extended under PEMERKASA is only for targetted sectors such as tourism, wholesales, retails as well as other businesses closed during MCO 2.0.
Other business sectors that are indirectly affected due the lockdown are not assisted in the wage subsidy, he said, while areas not under MCO such as Kuching, are also not assisted.
Meanwhile, he commented that the My Salam Covid-19 insurance to assist those quarantined at RM50 per day for a maximum of 14 days was keenly needed.
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