Malaysia: Stimulus packages to combat the impact of COVID-19
Restructuring and rescheduling of loans- Deferment of bank loan repayment until six months and restructuring of credit card balance as well corporate loans
- 100% stamp duty exemption arising from these rescheduling, restructuring, or moratoriums. The exemption is given from 1 March 2020 until 31 December2020.
- Cash handouts totaling RM10 billion (US$2.2 billion) will be distributed as follows:
- RM1,600 (US$366) to households with a monthly income of RM4,000 (US$916) or less;
- RM1,000 (US$229) to households with a monthly income between RM4,000 (US$916) and RM8,000 (US$1,800);
- RM800 (US$184) to single individuals aged 21 years and above with monthly income of RM2,000 (US$458) or below; and
- 500 RM (US$114) to single individuals aged 21 years and above with monthly income more than RM2,000 (US$458) and below RM4,000 (US$916).
- RM5 billion (US$1,141 million) to help SMEs in the form of low-interest loans with the interest rate capped at 3.5% per annum.
- Each eligible SME can receive up to RM1 million (US$226,000) with a tenure of 5.5 years – this includes a 6-months payment moratorium.
- RM50 billion (US$11.4 billion) guarantee scheme through which each business can receive up to RM20 million (US$4.5 million).
- Companies will be exempted from paying the HRDF for 6 months for all sectors.
- RM600 million (US$138 million) to provide free internet from 1 April 2020, during the lockdown period.
- 400 million (US$92 million) to expand the telecommunication network and improve the quality.
- RM1 billion (US$230 million) is to be distributed to increase the domestic production of agriculture, fisheries, and livestock products.
- A loan scheme for SMEs involved in the food production industry totaling RM1 billion (US$230 million). The loan scheme is available for a period of eight years at 3.75 percent interest; an eligible SME will able to receive 5 million ringgit (US$1.1 million).
- RM40 million (US$9 million) to help SMEs in the agriculture sector to enable selling their products on e-commerce platforms and therefore to a larger pool of consumers.
- Special monthly allowance for healthcare personnels from RM400 (US$91) to RM600 (US$137)
- Special monthly allowance of RM200 (US$45) for the military, police, civil defense, immigration, firefighters, and members of the voluntary force directly involved in implementing the lockdown.
- Travel agencies, hotels, airlines, as well as businesses in the tourism industry, will be given a deferment of their monthly tax installments for 6 months.
- The government has allowed some 750,000 SMEs to postpone the payment of income tax for 3 months.
- Hotels will also be exempted from service tax for 6 months.