BUILDING

THE ECONOMY
TOGETHER
Short-Term Economic Recovery Plan
June - December 2020
RAHSIA BESAR
EMBARGO SEHINGGA 5 JUN 2020

Towards a Better Future

Assalamualaikum and greetings to my fellow Malaysians

We are now living in unprecedented times of a global pandemic due to COVID-19. During
this ongoing crisis, the Government recognizes the challenges faced by individuals,
businesses and the economy at large. We have taken and will continue to take swift
and proactive action to protect lives, support businesses and strengthen the nation’s
economy.

The Government has steered the country through these challenging times by taking
an approach focused on 6 key steps: Resolve, Resilience, Restart, Recovery, Revitalize
and Reform. We have now passed the first 3 stages: Resolve entailed addressing and
containing COVID-19 by implementing the MCO; Resilience focused on protecting lives
and livelihoods through the PRIHATIN Economic Stimulus packages while recently in
May, the country stepped into the Restart phase which witnessed the reopening of
economic sectors in an orderly and controlled manner.

On the verge of entering the 4th phase, Recovery, we remain focused on completing
the nation’s current journey from Restart to Recovery by rolling out a set of strategic
initiatives to propel forward the nation’s economic growth.

The Government now unveils PENJANA (Pelan Jana Semula Ekonomi Negara) or the
National Economic Recovery Plan. This Government is committed to taking an inclusive
and holistic approach to Malaysia’s economic recovery, and it is important to us that
everyone is part of this journey. Towards this end, PENJANA will focus on 3 key thrusts
- Empower People, Propel Businesses and Stimulate the Economy.

This booklet outlines the details of PENJANA’s initiatives. God willing, may we find much
blessing in this journey together towards a secure future for Malaysia.

YAB Tan Sri Muhyiddin Yassin

Prime Minister of Malaysia

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 RAHSIA BESAR
EMBARGO SEHINGGA 5 JUN 2020

Building the Economy Together

RECOVERY

RESOLVE RESILIENCE RESTART REVITALIZE REFORM

1 2 3 4 5 6RAHSIA BESAR 2
 RAHSIA BESAR
EMBARGO SEHINGGA 5 JUN 2020

Supporting the economy

to operate in the New Normal
via 3 thrusts

i ii iii
STIMULATE
EMPOWER PROPEL
THE
PEOPLE BUSINESSES
ECONOMY

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EMBARGO SEHINGGA 5 JUN 2020 RAHSIA BESAR

40 Key Initiatives
i Empower People ii Propel Businesses
i-1 Wage Subsidy Programme pg 8 ii-12 Micros and SMEs E-commerce Campaign pg 23
i-2 National Employment Services Job Portal Upgrade pg 9 ii-13 “Shop Malaysia Online” for Online Consumption pg 24
i-3 Hiring and Training Assistance for Businesses pg 10 ii-14 Technical and Digital Adoption for SMEs and MTCs pg 25
i-4 Reskilling and Upskilling Programmes pg 11 ii-15 MyAssist MSME One Stop Shop pg 26
i-5 Gig Economy Social Protection and Skilling pg 13 ii-16 PENJANA SME Financing (PSF) pg 27
i-6 Flexible Work Arrangement Incentives pg 14 ii-17 PENJANA Tourism Financing (PTF) pg 28
i-7 Child Care Subsidy pg 15 ii-18 PENJANA Microfinancing pg 29
i-8 My30 Public Transport Subsidy pg 16 ii-19 Bumiputera Relief Financing pg 30
i-9 Social Assistance Support for Vulnerable Groups pg 17 ii-20 SME Go-scheme for Liquidity Support pg 31
i-10 PEKA B40 Healthcare Support pg 18 ii-21 Accelerated Payment Terms for GLC and Large Corporates’ pg 32
i-11 Internet Connectivity for Education & Productivity pg 19 Supply Chain
ii-22 Tax Relief for COVID-19 Related Expenses pg 33
ii-23 Financial Stress Support for Businesses pg 34
ii-24 Social Enterprises Elevation pg 35
ii-25 Spur Set Up of New Businesses pg 36

iii Stimulate the Economy

iii-26 Dana Penjana Nasional pg 39 iii-34 Malaysia as Attractive Horizon for Businesses pg 47
iii-27 Technology Innovation Sandbox pg 40 iii-35 Tourism Sector Support pg 48
iii-28 Digitalisation of Government Service Delivery pg 41 iii-36 Arts, Culture, Entertainment, Events and Exhibitions pg 49
iii-29 National “Buy Malaysia” Campaign pg 42 Sector Support

iii-30 ePenjana Credits in e-wallet pg 43 iii-37 Agriculture and Food Sector Support pg 50

iii-31 Incentives for Property Sector pg 44 iii-38 Commodity Sector Support pg 51

iii-32 Tax Incentives for Purchase of Passenger Cars pg 45 iii-39 Proposed COVID-19 Temporary Measures Act pg 52

iii-33 Extended Service Hours in the New Normal pg 46 iii-40 Sukuk Prihatin pg 53
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RAHSIA BESAR Short-Term Economic Recovery Plan

EMBARGO SEHINGGA 5 JUN 2020

Empower
People

RAHSIA BESAR
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RAHSIA BESAR Short-Term Economic Recovery Plan

EMBARGO SEHINGGA 5 JUN 2020

The COVID-19 pandemic is a crisis like no Under the new norm, striking a balance
other. It has led to one of history’s most between protecting lives and promoting
challenging global humanitarian and livelihoods is neither easy nor simple.
health crises. To contain the virus and That balance is a pre-requisite to restoring
flatten the curve, Malaysia implemented the consumer confidence which, in turn, is
Movement Control Order (MCO) for almost crucial to stimulate consumption and
two months, followed by the Conditional generate growth.
Movement Control Order (CMCO) which
marked the reopening of our economy. In empower ing our people, the
Government’s measures under Penjana
The repercussions brought about by aim to save jobs and promote employment,
COVID-19 in the past three months have while ensuring the people have enough
impacted Malaysian lives and livelihoods, to live on. Apart from hiring incentives
with up to 2 million jobs (~8% of the and expanded wage subsidy, reskilling
workforce) estimated to be at risk by end- and training are equally crucial to ensure
2020. With potentially higher unemployment workers maintain or upgrade their skills
levels compared to the Global Financial for when the economy recovers.
Crisis 2008/09 and the Asian Financial Crisis
1997/98, it is imperative for Malaysia to take Additionally, COVID-induced new norm
bold measures to protect and empower our has also forced a dramatic change in how
people over the short term. we work and interact. Hence, it is equally
important for the Government to provide
Under the PRIHATIN Economic Stimulus an enabling ecosystem to help workers’
Packages announced in March and April return to work, and adapt to new ways
2020, the Government has helped save of working. These include incentivising
over 2.4 million jobs, while easing cashflow technology adoption to facilitate remote
concerns for about 11 million Malaysians learning and working from home. To that
from the B40 and M40 income groups. end, vulnerable members of society,
In addition, with Standard Operating such as the elderly, the differently-
Procedures (SOPs) crafted for various abled, students in rural areas, the B40
sectors, the gradual and careful restart community and the urban poor continue
of the economy from 4 May 2020 has to be supported to ensure their general
since enabled over 12.7 million people welfare is taken care of.
(~83.5%) to return to work. Nevertheless,
more efforts are required to enable other It is the Government’s hope that these
economic sectors, particularly those in measures will help empower Malaysians
the negative list, to reopen, while also to navigate through these unprecedented
ensuring the safety and health of workers times, as we begin to nurture the nation’s
and the Rakyat. economic recovery.
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Wage Subsidy Programme BENEFICIARIES

2.7 million workers

QUANTUM
RM5.3 billion

OBJECTIVE TIMELINE
To promote employee retention and reduce layoffs by Mid June to end September
extending the wage subsidy programme 2020

The wage subsidy programme will be extended for a further three months with
subsidy of RM600 per employee for all eligible employers

The current wage subsidy program will also be enhanced as follows:

▸  Allow employers receiving wage subsidy to implement reduced work week

(e.g. 4-day work week with a reduced pay of 20%) and reduced pay (the
maximum allowable reduced pay is 30%)

▸  Allow employers to receive wage subsidy for employees on unpaid leave,

subject to employees receiving the subsidy directly (only applicable
for tourism sector and businesses which are prohibited from
operating during CMCO)

For more information: www.perkeso.gov.my

Lead agencies:

MINISTRY OF HUMAN RESOURCES

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National Employment BENEFICIARIES

50,000 unemployed
Services Job Portal
TIMELINE
Upgrade Long-term

OBJECTIVE
To improve employment by enhancing the PERKESO
job portal

The National Employment Services under PERKESO will be upgraded as follows:

▸  Enhancement of the job portal and employment placement services

▸  Collaboration with the private job sites for employment matching

For more information: www.perkeso.gov.my

Lead agencies:

MINISTRY OF HUMAN RESOURCES

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Hiring and Training BENEFICIARIES

300,000 job seekers
Assistance for Businesses
QUANTUM
RM1.5 billion

OBJECTIVE TIMELINE
To encourage hiring of employees by providing Applications open from mid
financial incentives to employers June to end December 2020

The Government will introduce incentives to encourage the hiring of the

unemployed as follows:

▸  Youth
• RM600 per month for apprenticeships for school leavers and graduates for up
to 6 months

▸  Unemployed Workers
• Below 40 years old: RM 800 per month for employment of unemployed for up to
6 months
• 40 years old and above: RM 1,000 per month for employment of unemployed
for up to 6 months
• Training allowance of RM4,000 per individual will also
be extended to those retrenched but not covered
under the Employment Insurance System (EIS)

For more information: www.perkeso.gov.my

Lead agencies:

MINISTRY OF HUMAN RESOURCES

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Reskilling and Upskilling BENEFICIARIES

200,000 youth and unemployed
Programmes workers

QUANTUM
RM2 billion
OBJECTIVE
To enhance employability of the unemployed TIMELINE
through reskilling and upskilling programmes Mid June to end December 2020

A RM2 billion fund will be dedicated to reskilling and upskilling programmes for
Youth and Unemployed Workers.

To enhance employability of youth particularly school leavers and fresh

graduates, the Government will:

▸  Provide a 1-to-1 matching fund of RM250 million to co-fund place-and-train

in addition to other upskilling programmes with HRDF

▸  Optimise Government training facilities such as those under MARA,

Community Colleges, IKBN and ILP

▸  Support Securities Industry Development Corporation (SIDC) programs such

as Capital Market Graduate Apprenticeship program, Islamic Capital Market
Graduate Training Scheme (ICM GTS) and training subsidy of up to RM 3,500
over the next 6 months

▸  Relax conditions for PROTÉGÉ Ready to Work (RTW) programme

For more information: www.penjana.treasury.gov.my

Participating agencies:

MINISTRY OF HUMAN RESOURCES KEMENTERIAN PEMBANGUNAN MINISTRY OF AGRICULTURE MINISTRY OF HIGHER EDUCATION
USAHAWAN DAN KOPERASI
MALAYSIA

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Reskilling and Upskilling

Programmes (cont’d)

To provide upskilling for unemployed workers, the Government will undertake:

▸  Public private collaboration on upskilling in sectors such as E&E and ICT for
key investors (MIDA, corridor authorities)

▸  Incentivise further studies, focused on short courses in local universities

▸  Leverage entrepreneurship programs delivered by MOA, MARA, MEDAC

▸  Provide training subsidy of up to RM 800 per month for 6 months through the
Securities Industry Development Corporation (SIDC)

For more information: www.penjana.treasury.gov.my

Participating agencies:

MINISTRY OF HUMAN RESOURCES KEMENTERIAN PEMBANGUNAN MINISTRY OF AGRICULTURE

USAHAWAN DAN KOPERASI
MALAYSIA

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Gig Economy Social BENEFICIARIES

30,000 gig economy
Protection and Skilling employees

QUANTUM
OBJECTIVE RM75 million
To promote the gig economy and provide a
social safety net system for the gig economy TIMELINE
and informal sector workforce Beginning August 2020

The Government will facilitate policies to support the growth of the gig economy and
the welfare of gig economy workers through:

 matching grant of up to RM50 million for gig economy platforms who contribute
▸  A
for their gig workers towards PERKESO’s employment injury scheme of up to
RM162 and EPF’s i-Saraan contribution of up to RM250 yearly

▸  Provide MDEC with RM25 million for the Global Online Workforce (GLOW)
program which will train Malaysians to earn income from serving international
clients while working online from home

For more information: www.perkeso.gov.my • www.kwsp.gov.my • https://glowmalaysia.com/

Lead agencies:

MINISTRY OF FINANCE MINISTRY OF HUMAN RESOURCES

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Flexible Work BENEFICIARIES

All employees working
Arrangement Incentives from home

QUANTUM
RM800 million
OBJECTIVE
To encourage work-from-home arrangements by TIMELINE
providing support to both employers and employees Beginning June 2020

To sustain the new normal of work-from-home, the Government will support

employers and employees with the following:

▸  Further tax deduction for employers which implement Flexible Work

Arrangements (FWAs) or undertake enhancement of their existing FWAs
(effective 1st July 2020)

▸  Individual income tax exemption of up to RM5,000 to employees who receive a

handphone, notebook & tablet from their employer (effective 1st July 2020)

▸  Special individual income tax relief of up to RM2,500 on the purchase of

handphone, notebook & tablet (effective 1st June 2020)

With the increasing number of Malaysians working from

home, SOCSO will also provide:

▸  Coverage for workers involved in accidents

while working at home under the Employment
Injury Scheme

For more information: www.hasil.gov.my • www.perkeso.gov.my

Lead agencies:

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Child Care Subsidy BENEFICIARIES

Approximately 8,000 childcare
centres, 5,000 households and
estimated 10,000 new early
education practitioners

QUANTUM
OBJECTIVE RM200 million
To support working parents during the
Conditional Movement Control Order (CMCO) TIMELINE
period by subsidising child care expenses Beginning June 2020

To ease the transition to the new normal of working-from-home, the Government will
support working parents through the subsidy of child care expenses:

▸  e
 Vouchers of RM 800 per household for mobile childcare services, to be utilised
from now till end of August 2020

▸  Increase in income tax relief for parents on childcare services expenses, from RM
2,000 to RM 3,000 for Year of Assessment (YA) 2020 and 2021

There will also be incentives to encourage child care centres to comply with the new
normal and to incentivise certification of early education practitioners:

▸  One-off grant of up to RM5,000 per childcare centre registered with the Ministry
of Women, Family and Community Development (up to 31st December 2020) to
comply with new healthcare SOPs

▸  Incentive to train new practitioners for child nursing and

early education course under Ministry of Women,
Family and Community Development

For more information: http://ezi2care.jkm.gov.my

Lead agencies:

MINISTRY OF FINANCE MINISTRY OF WOMEN, FAMILY

AND COMMUNITY DEVELOPMENT

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My30 Public Transport BENEFICIARIES

200,000 Malaysian public
Subsidy transport users

QUANTUM
RM200 million

OBJECTIVE TIMELINE
To reduce the cost of daily public transportation Mid June to end December 2020

To encourage mobility and reduce the burden of costs of transportation, the

Government will:

▸  Introduce an unlimited monthly travel pass costing RM30 for use on all rail
services (MRT, LRT, Monorail), BRT, RapidKL buses and MRT feeder buses

For more information: www.myrapid.com.my

Lead agencies:

MINISTRY OF TRANSPORT LAND PUBLIC TRANSPORT AGENCY

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Social Assistance BENEFICIARIES

OKUs, single mothers
Support for Vulnerable and related NGOs

Groups QUANTUM
RM108 million

OBJECTIVE TIMELINE
To provide social assistance to vulnerable groups Beginning June 2020
such as OKUs and Single Mothers

Social assistance support will be provided to identified vulnerable groups:

▸  One-off financial assistance RM300 to:

• 190,000 registered OKUs; and
• 150,000 single mothers (income below the poverty line) registered under
KPWKM (unregistered single mothers can start to register until December 2020)
• 2,000 volunteer Home Help Services

▸  Grant for relevant registered NGOs which support vulnerable groups

▸  PENJANA GLC Community - GLCs encouraged to adopt one community

and will implement a social economic development project
with the community

For more information: http://ezi2care.jkm.gov.my

Lead agencies: Participating agency:

MINISTRY OF FINANCE MINISTRY OF WOMEN, FAMILY

AND COMMUNITY DEVELOPMENT

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PEKA B40 Healthcare BENEFICIARIES

B40 aged 40 and above
Support
QUANTUM
RM50 million
OBJECTIVE
To support the the healthcare needs of low-income TIMELINE
groups To begin immediately

The government will double the existing allocation for the PEKA B40 Programme to a
total of RM 100 million in order to fund four benefits for the B40 group;

▸  Health screening

▸  Medical device assistance

▸  Cancer treatment incentives

▸  Subsidy for transportation for health

For more information: www.pekab40.com.my

Lead agency: Participating agency:

MINISTRY OF HEALTH

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Internet Connectivity for BENEFICIARIES

All
Education & Productivity
QUANTUM
RM3 billion

OBJECTIVE TIMELINE
To support e-learning and productivity activities by Mid June to end December
providing free internet connectivity 2020

To enable the transition to the new normal of remote learning and work, support will
be provided to increase internet connectivity through the following:

▸  Free 1Gb per day between 8am to 6pm for education, productivity (video
conference applications) and news by participating telecommunication
companies

▸  Free unlimited use of Government’s COVID-19 applications and access to Ministry

of Health and other Government websites

For more information: www.penjana.treasury.gov.my

Lead agencies: Participating agencies:

MINISTRY OF COMMUNICATION
AND MULTIMEDIA

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Propel Businesses Short-Term Economic Recovery Plan

EMBARGO SEHINGGA 5 JUN 2020 RAHSIA BESAR

Propel
Businesses

RAHSIA BESAR
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Propel Businesses Short-Term Economic Recovery Plan

ii
EMBARGO SEHINGGA 5 JUN 2020 RAHSIA BESAR

Businesses – large, SMEs and micro – both consumers and operators adjust to
were impacted during the MCO as efforts the new norm.
to combat COVID-19 intensified. With
most economic sectors closed for nearly With demand concerns rising due to low
two months, businesses were unable to consumer confidence, it is imperative to
operate, affecting revenue and income stimulate consumption which contributes
streams. Consequently, many businesses, over 60% to Malaysia’s economy.
especially SMEs and micro-enterprises, During MCO alone, 66% of businesses
faced cashflow challenges with the experienced a drastic drop in demand that
payment of salaries and premise rentals made it difficult to sustain a business. On
cited as the two biggest costs. the flipside, e-commerce was increasingly
becoming a preferred medium compared
Under the PRIHATIN Economic Stimulus to brick-and-mortar. Unfortunately, 25%
Packages, the Government supported of businesses still lacked the e-commerce
businesses through a raft of measures infrastructure to take advantage of the
aimed at saving jobs and easing cashflow growth in online shopping.
challenges. This included the Wage
Subsidy Programme, waivers for rental Under PENJANA, measures will be
of business premises, as well as facilities introduced to enable workers and
such as the Special Relief Facility (SRF) businesses to sustain operations and
and various micro-credit schemes. Many gradually enhance productivity. Support
of these measures are still ongoing. will be given to social enterprises to
diversify economic activity. Targeted
The reopening of the economy in May assistance will be put in place to
has seen an uptick in commercial activity regenerate the most affected economic
as more workers gradually returned to sectors, while initiatives to increase
the workforce. As at 2 June, this amount consumer confidence and consumption
involved just over 12.7 million or 83.5% will be launched. In addition, enabling
workers. Nevertheless, certain sectors businesses to go through training and
such as tourism, entertainment and sports digital adoption will be key as businesses
will require a longer recovery period as equip themselves for the new norm.

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Micros and SMEs BENEFICIARIES

Malaysian MSMEs
E-commerce Campaign
QUANTUM
RM70 million
OBJECTIVE
To encourage adoption of e-commerce by micro TIMELINE
enterprises and SMEs in order to widen their June to September 2020
market reach

Eligible Micro enterprises and SMEs will be onboarded to shift towards business
digitalisation through a co-funded programme with MDEC and e-commerce
platforms. Participating e-commerce platforms will provide the following to eligible
MSMEs:

▸  On-boarding training

▸  Seller subsidy

▸  Sales support

Fresh food producers such as farmers and fishermen

are encouraged to join the campaign.

For more information: www.penjana.treasury.gov.my

Lead agencies: Participating agencies:

MINISTRY OF FINANCE

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“Shop Malaysia Online” BENEFICIARIES

Malaysian MSMEs with
for Online Consumption e-commerce footprint and
consumers

QUANTUM
RM70 million
OBJECTIVE
To encourage online consumer consumption TIMELINE
through e-commerce vouchers August to September 2020

The Government will collaborate with e-commerce platforms to:

▸  Co-fund digital discount vouchers to encourage online spending on products

from local retailers

For more information: www.penjana.treasury.gov.my

Lead agencies: Participating agencies:

MINISTRY OF FINANCE

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Technical and Digital Adoption BENEFICIARIES

SMEs and MTCs
for SMEs and MTCs
QUANTUM
RM700 million
OBJECTIVE
To assist as well as incentivise SMEs and MTCs to TIMELINE
digitalise operations and trade channels Beginning June 2020

The Government will continue to provide grants and loans to eligible enterprises for
adoption or subscription of digitalisation services under the following programmes:

▸  SME Digitalisation Matching Grant totalling RM100 million, in partnership with

telecommunication companies

▸  SME Technology Transformation Fund totalling RM500 million loan (application

opens from July 2020)

▸  Smart Automation Grant totalling RM100 million, capped at up to RM1 million

per company

For more information: www.mida.gov.my • https://mdec.my • https://smebank.com.my

Lead agencies: Participating agencies:

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MyAssist MSME One Stop BENEFICIARIES

Micro enterprises and
shop SMEs

QUANTUM
RM5 million
OBJECTIVE
To provide guidance and facilitate the recovery TIMELINE
process for Micro enterprises and SMEs Beginning June 2020

An online one-stop business advisory platform for the Micro enterprises and SMEs
will be set up to enhance the outreach of the existing physical SME Hub.

The services offered include guidance for:

▸  Funding facility

▸  Trade facilitation

▸  Branding and promotion

▸  Technology support

▸  Legal

For more information: www.smecorp.gov.my

Lead agency: Participating agency:

MINISTRY OF ENTREPRENEUR
DEVELOPMENT AND COOPERATIVES

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PENJANA SME BENEFICIARIES

Businesses in the critically
Financing (PSF) affected sectors

QUANTUM
RM2 billion
OBJECTIVE
To assist SMEs adversely impacted by COVID-19 in TIMELINE
order to sustain business operations Mid June 2020

Additional financing facility to eligible SMEs:

▸  The banking sector will offer an additional RM2 billion of funding to assist SMEs
adversely impacted by COVID-19 sustain business operations at a concession
rate of 3.5%. This financing facility will be made available in mid-June 2020 with a
maximum loan size of RM500,000 per SME.

For more information, please refer to respective banks’ websites

Lead agency:

MINISTRY OF FINANCE

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PENJANA Tourism BENEFICIARIES

Tourism sector
Financing (PTF)
QUANTUM
RM1 billion
OBJECTIVE
To finance transformation initiatives by SMEs in the TIMELINE
tourism sector to remain viable and competitive in the Beginning July 2020
new normal

Provision of funding facility for the tourism sector:

▸  To aid the tourism sector, a RM1 billion PENJANA Tourism Financing (PTF)
facility will be made available to finance transformation initiatives by SMEs in
the tourism sector to enable them to remain viable and competitive in the new
normal. Details of this fund will be announced in July 2020.

For more information: www.bnm.gov.my

Lead agency:

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PENJANA BENEFICIARIES
Micro enterprises and SMEs
Microfinancing
QUANTUM
RM400 million
OBJECTIVE
To support micro enterprises through funding TIMELINE
Beginning June 2020
programmes

Dedicated funding support for micro enterprises via:

▸  New funding program for SMEs and micro enterprises at a subsidised interest
rate of 3.5%

▸  Aggregated approved financing will be capped at RM50,000 per enterprise

▸  RM50 million is earmarked for women entrepreneurs

A dedicated amount of the funding will be carved out e.g. for women, youth
entrepreneurs and social enterprises

For more information: https://www.tekun.gov.my • https://www.mybsn.com.my

Lead agencies:

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Bumiputera Relief BENEFICIARIES

Bumiputera businesses
Financing
QUANTUM
RM500 million
OBJECTIVE
To ensure sustainability of shariah compliant TIMELINE
Bumiputera entrepreneurs through financial support Beginning June 2020

PUNB will provide RM200 million dedicated financial assistance for Bumiputera owned
shariah compliant businesses in the form of:

▸  Working capital

▸  Operational expenditure

▸  System automation

▸  Equipment and expenditure to implement social distancing practices (eg. on PPEs)

▸  Financing of RM 100,000 – RM 1 million for up to 5 years at 3.5% p.a. profit rates.

Moratorium of up to 6 months from disbursement

Through MARA, the Government will also allocate:

▸  R
 M300 million working capital loans to assist affected
Bumiputera entrepreneurs including training colleges

▸  Maximum loan amount of RM1 million with

3.5% p.a interest rate

For more information: https://www.punb.com.my • https://www.mara.gov.my/en/index/

Lead agencies:

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SME Go-Scheme for BENEFICIARIES

SME contractors
Liquidity Support
QUANTUM
RM1.6 billion
OBJECTIVE
To provide liquidity for SME contractors to start TIMELINE
delivering on Government projects To begin in July 2020

SME Bank will provide financing support to contractors and vendors who were
awarded with small government projects (aggregate value of RM 4 billion) under the
Pakej Rangsangan Ekonomi (PRE) 2020 and the PRIHATIN stimulus package.

▸  The scheme will benefit 16,000 G2 & G3 contractors

▸  No deposits or collateral needed

▸  SME Bank shall pay directly to the contractors and vendors based on the
presentation of invoices/claims

For more information: https://www.smebank.com.my

Lead agencies:

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Accelerated Payment BENEFICIARIES

Companies in supply chains
Terms for GLC and Large of selected GLC and large
corporates
Corporates’ Supply Chain
TIMELINE
Beginning July 2020
OBJECTIVE
To provide relief cashflow to SMEs who are part of
the supply chain of GLCs and large corporates by
accelerating payment terms

To provide relief to SMEs’ cash flows, the Government is encouraging GLCs and large
corporations to accelerate their vendors’ payment terms.

Selected GLCs and large companies have already committed to accelerate payment
terms to their vendors:

▸  Axiata and TM have reduced payment terms for selected vendors from 45 days to
14 days

▸  TNB has a 7-days payment process

▸  PETRONAS launched the Vendor Financing Programme in collaboration with nine

banks, to facilitate vendor verification and reduce approval time. In the past few
months in particular, PETRONAS has accommodated payment arrangements that
have enabled vendors to stay afloat

For more information: www.penjana.treasury.gov.my

Lead agency:

MINISTRY OF FINANCE

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Tax Relief for COVID-19 BENEFICIARIES

All businesses
Related Expenses
QUANTUM
RM600 million
OBJECTIVE
To encourage businesses to adapt to new norms and TIMELINE
adhere to SOPs through tax relief Immediately

Extend the period and expand the scope of expenses allowed as tax deduction or
capital allowance for COVID-19’s prevention, including:

▸  Covid-19 testing

▸  Purchase of PPE and thermal scanners

For more information: www.hasil.gov.my

Lead agencies:

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Financial Stress Support BENEFICIARIES

All businesses
for Businesses
QUANTUM
RM2.4 billion
OBJECTIVE
To ease financial stress on businesses through TIMELINE
remissions of penalties related to late tax payments Beginning March 2020

Ease financial stress of business through:

▸  50% remission of penalty for late payment of sales tax & service tax due and
payable from 1st July 2020 to 30th September 2020

▸  Extension of special tax deduction for renovation and refurbishment of business

premises to 31st December 2021

▸  Extension of Accelerated Capital Allowance on eligible capital expenses including

ICT equipment to 31st December 2021

▸  Extension of special deduction equivalent to 30% reduction in rental for SMEs to

30th September 2020

For more information: www.hasil.gov.my

Lead agencies:

MINISTRY OF INTERNATIONAL
TRADE AND INDUSTRY

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Social Enterprises BENEFICIARIES

Relevant social enterprises
Elevation
QUANTUM
RM10 million
OBJECTIVE
To encourage social enterprise related activity TIMELINE
through contribution matching Beginning August 2020

To encourage and sustain the role of social enterprise in promoting responsible

business, the Government will:

▸  Provide a matching grant through Malaysian Global Innovation & Creativity Centre
(MaGIC) totaling RM10 million to social enterprises who are able to crowdsource
contributions and donations to undertake social projects that will address the
challenges faced by targeted communities through innovative ways

For more information: https://mymagic.my/

Lead agency:

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Spur Set Up of New BENEFICIARIES

New businesses and
Businesses SMEs involved in M&A

QUANTUM
RM300 million
OBJECTIVE
To encourage the establishment of new businesses and TIMELINE
transactions such as mergers and acquisitions Beginning July 2020

To catalyse establishment of new businesses, financial relief will be provided in the

form of:

▸  Income tax rebate up to RM20,000 per year for 3 years of assessment for newly
established SME between 1st July 2020 to 31st December 2021

▸  Stamp duty exemption for SMEs on any instruments executed for Mergers and
Acquisitions (M&As), for period between 1st July 2020 to 30th June 2021

For more information: www.hasil.gov.my

Lead agencies:

KEMENTERIAN PEMBANGUNAN
USAHAWAN DAN KOPERASI

RAHSIA BESAR 36
iii
RAHSIA
StimulateBESAR
the Economy Malaysia’s
Short-TermShort-Term
Economic Recovery Plan

EMBARGO SEHINGGA
EMBARGO SEHINGGA 55 JUN
JUN 2020
2020 RAHSIA BESAR

Stimulate the
Economy

RAHSIA BESAR
RAHSIA BESAR 37
Stimulate the Economy Short-Term Economic Recovery Plan

iii
EMBARGO SEHINGGA 5 JUN 2020 RAHSIA BESAR

COVID-19 has forever changed the way PENJANA is our signal to the world that we
the Malaysian economy operates. With are open for business. Economic recovery
disruptions to the global supply chain, is dependent on public and private
changes in consumption habits, and new consumption which are dynamically
operating procedures impacting business intertwined, feeding into a virtuous cycle
processes, participants of the Malaysian of social and economic benefit. Malaysia
economy need to recalibrate and realign must find and capitalise on opportunities
within this new norm. in the new norm, especially in the digital
space, in order to develop its competitive
While the first quarter of 2020 saw advantage. Investors need to be reminded
the Malaysian economy grow at 0.7%, why Malaysia is ranked 12th globally, and
however, it is expected that overall GDP 3rd within Asia Pacific, on ease of doing
growth for 2020 could be as low as -4.7%. business. Now, more than ever, it becomes
The Government has taken proactive steps more critical for Malaysia to promote itself
to stem the economic slowdown and the as a business destination.
PRIHATIN Economic Stimulus Packages
are expected to contribute an estimated With certain sectors of the economy
2.8% to GDP growth. Nevertheless, more more severely affected others – including
is required to stimulate the economy, and tourism, arts, culture, entertainment
to enable its recovery by 2021 and beyond. and agriculture – PENJANA will provide
With international agencies forecasting targeted sectoral and systemic support
Malaysia’s GDP growth to be between to help them adapt and grow in the new
4.7% and 9%, the outlook is positive, norm operating landscape. Additionally,
subject to the public health situation being with initiatives to encourage consumption
under control. of local products and services, PENJANA
is set to enable the Malaysian economy
recalibrate, rebound and recover.

RAHSIA BESAR 38
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Dana Penjana BENEFICIARIES

Start-ups and Local private
Nasional sector Venture Capital funds

QUANTUM
RM1.2 billion (RM600 million
OBJECTIVE from domestic source)
To support digitalisation of Malaysian businesses by
channelling funding from international investors into TIMELINE
the local venture capital space Beginning July 2020

An investment fund will be established, which will match institutional private capital
investment with selected venture capital and early stage tech fund managers for the
following funds:

▸  Seed Stage / Co-creation Funds

▸  Series A/B Funds

▸  Growth Stage Tech Funds

▸  Venture Debt Funds

▸  Opportunistic Funds (e.g. e-sports, healthcare)

International investors and venture capital funds that have

expressed interest include SK Group, Hanwha Asset
Management, KB Investment Co. Ltd, Provident Growth,
500 Startups and The Hive.

For more information: www.penjana.treasury.gov.my

Lead agency:

MINISTRY OF FINANCE

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Technology Innovation BENEFICIARIES

Start-ups
Sandbox
QUANTUM
RM80 million
OBJECTIVE
To encourage innovation and creativity that can propel TIMELINE
the digitalisation of service delivery Beginning June 2020

An innovation sandbox will be developed to :

▸  Pilot new technology solutions

▸  Provide relaxation of regulations in order to text new technology solutions (e.g.

drone delivery, autonomous vehicles)

For more information: https://mymagic.my

Participating agencies:

MINISTRY OF SCIENCE,
TECHNOLOGY AND INNOVATION

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Digitalisation of Government BENEFICIARIES

Public
Service Delivery
QUANTUM
RM20 million
OBJECTIVE
To enhance efficiency of government services delivery TIMELINE
in light of new social distancing norms Beginning June 2020

Accelerate the digitalisation of government services to reduce face-to-face

transactions. This includes, but not limited to:

▸  Stamp assessment & stamp duties

▸  Unclaimed money

▸  Online interviews for Government scholarships

Hackathons to crowdsource solutions for future digitalisations

For more information: www.penjana.treasury.gov.my

Lead agencies: Participating agency:

MINISTRY OF FINANCE

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National “Buy Malaysia” BENEFICIARIES

Local businesses
Campaign
QUANTUM
RM20 million
OBJECTIVE
To encourage the consumption of Malaysian-made TIMELINE
products and services Beginning June 2020

Push for consumption of local products and services through:

▸  Promoting the “Buy Malaysia” campaign by the Government and relevant

agencies

▸  Ensuring local product tagging or identification is compulsory for big supermarket

chains

▸  Create dedicated Malaysian products channels on major digital platforms

For more information: http://kpdnhep.gov.my/

Lead agency:

MINISTRY OF DOMESTIC TRADE

AND CONSUMER AFFAIRS
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ePenjana Credits in BENEFICIARIES

Approximately 15 million
e-wallet Malaysians

QUANTUM
RM750 million
OBJECTIVE
To encourage e-wallet usage for safe, contact-free TIMELINE
payment experience and to boost consumer spending July to September 2020

Encourage contact-free payment through the provision of:

▸  RM 50 worth of e-wallet credits

▸  Additional RM50 in value through vouchers, cashback and discounts by e-wallets

▸  Only for offline/physical purchases

This is applicable to all Malaysians aged 18 and above; and earning less than
RM100,000 annually

For more information: www.penjana.treasury.gov.my

Lead agency:

MINISTRY OF FINANCE

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Incentives for Property BENEFICIARIES

Homeowners, Prospective
Sector homebuyers

QUANTUM
RM1 billion
OBJECTIVE
To stimulate the property market and provide TIMELINE
financial relief to home buyers Beginning June 2020

Tax exemption for purchase of properties:

▸  Home Ownership Campaign (HOC) to be reintroduced:

• Stamp duty exemption on the instruments of transfer and loan agreement for
the purchase of residential homes priced between RM300,000 to RM2.5 million
subject to at least 10% discounts provided by the developer. The exemption on
the instrument of transfer is limited to the first RM 1 million of the home price
while full stamp duty exemption is given on loan agreement effective for sales
and purchase agreements signed between 1st June 2020 to 31st May 2021.

▸  RPGT exemption for disposal of residential homes from 1st June 2020 to 31st
December 2021 (This exemption is limited to the disposal
of three units of residential homes per individual)

▸  In addition, the current 70% margin of financing limit

applicable for the third housing loan onwards for
property valued at RM600,000 and above, will be
uplifted during the period of the HOC, subject to
internal risk management practices of financial
institutions.

For more information:www.hasil.gov.my

Lead agencies:

MINISTRY OF HOUSING AND

LOCAL GOVERNMENT

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Tax Incentives for Purchase BENEFICIARIES

Automotive Sector,
of Passenger Cars Consumer

QUANTUM
RM897 million

OBJECTIVE TIMELINE
To stimulate the automotive sector and provide Mid June to end December
financial relief to car buyers 2020

Tax exemption for purchase of passenger cars:

▸  Full sales tax exemption on locally assembled cars

▸  50% sales tax exemption on imported cars

For more information: www.penjana.treasury.gov.my

Lead agency:

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Extended Service Hours in BENEFICIARIES

Public
the New Normal
QUANTUM
RM20 million
OBJECTIVE
To maximise productive capacity while maintaining TIMELINE
SOPs & new normal workplace best practices Beginning mid June 2020

Encourage transition away from the traditional working hours concept of 9am to 5pm
towards extended working hours on shifts-basis through the following:

▸  Government to lead the way beginning with new operating hours for the Urban
Transformation Centres (UTC) and Klinik Kesihatan. This initiative will involve 5
key agencies and over 22 UTCs.

▸  UTCs operating hours:

• Peninsular
Weekday: 8 am - 9 pm
Weekend: 8 am - 5 pm
• Sabah/Sarawak
Weekday: 8 am - 5 pm
Weekend: 10 am - 7 pm

▸  Extended hours will also be encouraged for other

business-facing Government departments

For more information: www.utc.my

Lead agency:

GOVERNMENT OF
MALAYSIA
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Malaysia as Attractive BENEFICIARIES

Foreign Direct
Horizon for Businesses Investments

QUANTUM
RM50 million

OBJECTIVE TIMELINE
To attract foreign companies to relocate their business July 2020 to December
into Malaysia by addressing the risk of re-shoring 2021

Tax incentives for company relocating into Malaysia:

▸  0% tax rate for 10 years for new investment in manufacturing sectors with capital
investment between RM300 - RM500 million

▸  0% tax rate for 15 years for new investment in manufacturing sectors with capital
investment above RM500 million

▸  100% Investment Tax Allowance for 5 years for existing company in Malaysia
relocating overseas facilities into Malaysia with capital investment above
RM300 million

▸  Special Reinvestment Allowance for manufacturing and selected agriculture

activity, from YA 2020 to YA 2021.

▸  Additional operating expenditure for Malaysian Investment Development Authority

(MIDA) to undertake marketing and promotional activities

▸  Establishment of Project Acceleration & Coordination Unit (PACU) at MIDA

▸  Enhancement of Domestic Investment Strategic Fund

▸  Manufacturing License approval for non-sensitive industry within 2 working days

For more information: www.hasil.gov.my

Lead agencies:

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Tourism Sector BENEFICIARIES

Tourism sector
Support
QUANTUM
RM1.8 billion
OBJECTIVE
To support the tourism sector during the COVID-19 TIMELINE
period through tax incentives Beginning July 2020

Tax incentives for the tourism sector:

▸  Tourism tax exemption from 1st July 2020 to 30th June 2021

▸  Extension of service tax exemption for hotels to 30th June 2021

▸  Extension of period for income tax relief of RM1,000 for tourism expenses to
31st December 2021

▸  Extension of period for deferment of tax instalment payment for tourism industry
to 31st December 2020

Lead agencies:

MINISTRY OF FINANCE MINISTRY OF HEALTH

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Arts, Culture & BENEFICIARIES

Arts, culture, entertainment,
Entertainment, Sector events and exhibitions
sector
Support
QUANTUM
RM225 million
OBJECTIVE
To support the arts, culture, entertainment and event TIMELINE
industries adapt to the new normal Beginning June 2020

Dedicated funding and support for the arts, culture, entertainment, events and
exhibitions sector as follows:

▸  RM100 million in soft loans with interest rate of 3.5% and RM30 million in grants
for the creative, events and exhibitions industries under MyCreative Ventures and
RM10 million for CENDANA

▸  RM50 million worth of digital marketing obtained from RM10 million Digital
Marketing and Promotions Grant under MyCreative Ventures with a cap of
RM5,000 per event. This can benefit 2000 events, exhibitions, and productions

▸  RM35 million Dana Kandungan Digital under MDEC for projects in the creative
sector with a focus on animation and visual effects

▸  Collaboration between MyCreative and the private

sector to help players adapt to new normal through
training in digital distribution methods and promotion,
development of new business models, and connectivity

For more information: www.kkmm.gov.my/

Lead agencies: Participating agencies:

MINISTRY OF COMMUNICATIONS
AND MULTIMEDIA

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Agriculture and Food BENEFICIARIES

Agriculture and food sector
Sector Support
QUANTUM
RM400 million
OBJECTIVE
To provide financial relief for agriculture and food TIMELINE
players affected by COVID-19 and MCO Beginning June 2020

Dedicated support for the Agriculture and Food sector as follows:

▸  Micro credit financing under Agrobank for agropreneurs totalling of

RM350 million with interest rate of 3.5%
• Maximum loan size: RM50,000
• Tenure of loan: 5 years

▸  Agrofood workforce mobility via incentives for pioneer companies to train and
educate workforce

▸  In-kind benefits for Urban Farming (e.g. Fertilisers, Seeds, Infrastructure,

Equipment, Advisory and Training) worth RM500 per person and
RM 50,000 per community

For more information: http://www.moa.gov.my • https://www.agrobank.com.my

Lead agencies:

MINISTRY OF AGRICULTURE

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Commodity Sector BENEFICIARIES

Commodity sector
Support
QUANTUM
RM200 million

OBJECTIVE TIMELINE
To provide financial relief for commodity players Beginning July 2020

Support the commodity sector through 100% export duty exemption from 1 July 2020
to 31 December 2020:

▸  Crude Palm Oil

▸  Crude Palm Kernel Oil

▸  Refined Bleached Deodorized Palm Kernel Oil

For more information: www.penjana.treasury.gov.my

Lead agency:

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Proposed COVID-19 BENEFICIARIES

Relevant parties such a
Temporary Measures Act manufacturer, renters etc

TIMELINE
OBJECTIVE To be tabled during July
To mitigate potential negative impact to economic 2020 Parliament session
activities caused by contractual breaches and
enforcement of insolvency actions on groups affected
by COVID-19 and MCO

Introduction of COVID-19 Temporary Measures Act to minimise disruption to social

and economic well-being:

▸  Temporary legislative measure to minimise the impact of this pandemic

▸  Designed to provide sufficient runway for businesses to recover their operations.

This Bill will provide relief from certain contractual obligations and financial
distress for the revival of the economy

For more information: www.bheuu.gov.my

Lead agency:

BAHAGIAN HAL ELWAL

UNDANG-UNDANG
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Sukuk PRIHATIN BENEFICIARIES

Connectivity in schools, eligible
micro enterprises (focusing
on women entrepreneurs) and
sectors such as healthcare
sectors

QUANTUM
Issuance in Quarter 3 2020
OBJECTIVE
To facilitate the Rakyat’s participation in TIMELINE
supporting post-recovery economic measures To be determined upon issuance

To enable the Rakyat to join the Government in supporting post recovery measures,
MOF will issue an Islamic debt instrument, the Sukuk Prihatin. Details as follows:

▸  Scheduled to be issued in Quarter 3, 2020 with a fully digital subscription process

▸  Proceeds from the sukuk issuance will be utilised for specific development
programmes such as connectivity of schools (especially in rural areas), funding
for micro enterprises (focused on women entrepreneurs) and research grants
for infectious diseases

For more information: www.penjana.treasury.gov.my

Lead agencies:

MINISTRY OF FINANCE

RAHSIA BESAR 53
www.treasury.gov.my