When the economy stalls (not slows…), countries come up with stimulus plans to give businesses and the most vulnerable that breathing space. By the way, it is not supposed to provide the businesses with any profits or even the employees with the same salary they used to enjoy. It’s meant to help, that’s all. Thus, even more important is the implementation of the stimulus. As everyone may have known, sometimes this takes time. Fortunately, not this time. This time, it’s on time. (wow… I used 4 times of times this time)
So, what’s happening thus far? Article in themalaysianreserve.com The government has received over 3.26 million new applications for Bantuan Prihatin National (BPN). The payment will be made next week after verification and approval. To date, 7.74 million eligible recipients have received their payment worth RM5.47 billlion.
As of April 26, the number of approved applications for the wage subsidy programme has risen to 195,000 employers involving 1.5 million workers. This amounts to a fund of RM1.35 billion. The government has allocated RM13.8 billion for this initiative. (This means more applicants should be applying yeah)
Beyond these payments, Finance Minister Tengku Zafrul said this with regards to tackling the devastating effects from the COVID-19 pandemic. “We have embarked on a plan towards short-, medium- and long-term economic recovery. We are in the middle of engaging with stakeholders to ensure the plan is robust and comprehensive. The support from all segments of society is important in making the plan a reality and a success.” Please do refer to the full article here: Article in themalaysianreserve.com
Everyone knows the prediction for GDP Malaysia in 2020 is not that pretty. However, what has really helped is that these stimulus will reach directly to the people who will need to spend the money. In other words, the money will be multiplied within the economy. This was also announced yesterday: “Yes, you can now operate at full capacity.” It’s not for all but it is now more relaxed versus earlier when even essential services could only operate partially.
My relative (senior manager in a manufacturing company) told me that the operation costs were higher because the number of workers allowed is lower and the procedures to ensure social distancing and safety meant a lot of time, effort and costs have to be spent. At least now with the same time, effort and costs, companies can now operate at full capacity. Oh yeah, do read what the predictions for 2021 Malaysian GDP is yeah. Let’s wish what is predicted will come true. Then, 2021 can be a good year for everyone after a gloomy 2020. Yes, let’s wish for some friendly policies for the property market too once this MCO is lifted.
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