The 2020 Economic Stimulus Package: Tackling the impact of Covid-19 Amarjeet Singh

29-Feb-2020 Intellasia | Malay Mail | 6:52 AM Print This Post

The 2020 Economic Stimulus Package unveiled today introduces measures to mitigate the impact of Covid-19, encourage domestic economic growth and promote quality investments.

To cushion the economic impact of Covid-19, various measures were proposed to help alleviate cash-flow pressures on affected businesses, particularly in the tourism sector. These measures include deferment of tax instalments (for a six-month period), allowing companies to revise their tax estimates early, exemption from the Human Resource Development Fund (HRDF) levy, and exempting hotels from service tax. Financing assistance comes in the form of a RM2 billion Special Relief facility by Bank Negara for SMEs at a 3.75 per cent interest rate. Banks have been asked to be flexible with respect to loan restructuring or rescheduling during this difficult period. A one-off amount of RM600 will be given to individuals whose livelihood is reliant on tourism, such as taxi drivers and tour guides.

These measures should provide some relief to businesses and individuals who are bearing the brunt of the disruption and challenges caused by Covid-19. It is also acknowledged that many of our fellow citizens are working tirelessly to keep Malaysians safe from this terrible outbreak. As such, special allowances will be given to medical personnel and immigration staff.

Various measures have been introduced to boost local consumption and stimulate domestic tourism, including personal tax relief and vouchers for domestic tourism.

The 2020 Economic Stimulus Package unveiled today introduces measures to mitigate the impact of Covid-19, encourage domestic economic growth and promote quality investments.

To cushion the economic impact of Covid-19, various measures were proposed to help alleviate cash-flow pressures on affected businesses, particularly in the tourism sector. These measures include deferment of tax instalments (for a six-month period), allowing companies to revise their tax estimates early, exemption from the Human Resource Development Fund (HRDF) levy, and exempting hotels from service tax. Financing assistance comes in the form of a RM2 billion Special Relief facility by Bank Negara for SMEs at a 3.75 per cent interest rate. Banks have been asked to be flexible with respect to loan restructuring or rescheduling during this difficult period. A one-off amount of RM600 will be given to individuals whose livelihood is reliant on tourism, such as taxi drivers and tour guides.

These measures should provide some relief to businesses and individuals who are bearing the brunt of the disruption and challenges caused by Covid-19. It is also acknowledged that many of our fellow citizens are working tirelessly to keep Malaysians safe from this terrible outbreak. As such, special allowances will be given to medical personnel and immigration staff.

Various measures have been introduced to boost local consumption and stimulate domestic tourism, including personal tax relief and vouchers for domestic tourism.

https://www.malaymail.com/news/what-you-think/2020/02/27/the-2020-economic-stimulus-package-tackling-the-impact-of-covid-19-amarjeet/1841597

 


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