Malaysia: Dr Mahathir announces MYR20bn economic stimulus package

  • The government on 27 Feb 20 introduced a MYR20bn stimulus package to mitigate the economic impact of the Covid-19 outbreak.
  • In announcing the package on 27 Feb 20, interim prime minister Dr Mahathir Mohamad said the stimulus package was anchored on three strategies, namely, mitigating impacts of Covid-19; spurring rakyat-centric economic growth and promoting quality investments.
  • He said the government will implement a three-pronged approach to mitigate the impact of the outbreak, that is, to ease the cash flow of affected businesses; to assist affected individuals; and, to stimulate demand for travel and tourism.
  • He said the government is proposing a six-month period beginning from Apr-Sep 20 to:
  • allow deferment of monthly income tax installment payments for businesses in the tourism sector.
  • In addition, companies affected by the Covid-19 outbreak will be allowed to revise their profit estimates for 2020 with respect to monthly income tax installment payments without penalty;
  • provide 15% discount in monthly electricity bills to hotels, travel agencies, airlines, shopping malls, conventions and exhibitions centres;
  • exempt Human Resource Development Fund (HRDF) levies for hotels and travel related companies; and
  • exempt the 6% service tax for hotels.
  • However, these exemptions will be made effective earlier, that is, from Mar-Aug 20.

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