Yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced the "Perlindungan Ekonomi dan Rakyat Malaysia" (Permai) assistance package worth RM15 billion.
Twenty-two initiatives will be implemented under Permai, anchored on three main objectives:
- Combating the Covid-19 outbreak
- safeguarding the welfare of the people
- supporting the business continuity
Since the outbreak of Covid-19, the government has implemented four economic stimulus packages worth RM305bil before announcing Permai. Malaysia reached 155,095 cases with a record of 4,029 cases a day, forcing the Federal Territories and six states into a Movement Control Order 2.0.
Here are the Permai Highlights:
- Additional RM1 billion to fight Covid-19
- A total of 3,500 healthcare workers to be recruited by end January, RM150 mil allocated
- RM1000 tax exemption for health expenses which also covers Covid-19 testing
- RM1 billion for Wage Subsidy 3.0
- Government to reduce requirements for EIS registration
- RM24 million contributions to delivery riders’ Sosco
- Expansion of special grant for SMEs worth RM650 million
- Banks to continue offering moratoriums
- One-off RM500 cash aid for taxi and bus drivers
- Tax exemption up to RM2500 for buying phones, computers or tablets extended to end of 2021
- Free 1GB mobile data extended to end of April
- Up to 10% discount on electric bills from January to March for six business sectors
- Households to enjoy 2 sen per kilowatt-hour rebate for electric bills from January to June
The Malaysian government has implemented many initiatives to combat the pandemic and support its economy. You can read what benefits you may be eligible for as a homebuyer in Malaysia here.
"We expect PERMAI to encourage consumer demand and investor confidence to recover more quickly than we expected even just 12 hours ago. As a result, we may see a resurgent domestic economy this year.
PERMAI initiatives that seem likely to have a particularly good impact on the commercial real estate market are the electricity discounts, the tax benefits for rental discounts, and the stepped-up screening of foreign workers, and the Danajamin Guarantee Scheme.
Like everyone, the property industry wants Malaysians to get through this challenging period successfully. We want to see COVID-19 brought under tighter control, and we want people to keep their jobs and incomes. Most of all, we hope that, when we finally get through the pandemic, we have a bright future ahead of us.
The government is taking decisive action to control the virus and providing support to the most vulnerable among us.
The government's three key objectives are to combat the COVID-19 pandemic, to protect the people's welfare, and to support business continuity.
The Juwai IQI Property Survey and Index Q3 2020 found that the Malaysian real estate industry expects a strong market recovery in 2022, with 10.6% price growth through that date, despite a -4.8% fall over the next 12 months.
"The COVID-19 pandemic has done more global economic damage than the Asian Financial Crisis or the Global Financial Crisis. However, the pandemic has also had a positive impact on national property markets. Asia is already leading the recovery, and we expect it to continue to do so in 2021.” Juwai IQI Group Co-Founder and CEO Kashif Ansari said.