PERMAI Assistance Package

On 18 January 2021, the Prime Minister unveiled the RM15b Perlindungan Ekonomi & Rakyat Malaysia (PERMAI) Assistance Package. Incorporating 22 initiatives, the stimulus package focuses on mitigating the negative impact of the COVID-19 pandemic, including combatting the COVID-19 outbreak; safeguarding the welfare of the people; and supporting business continuity.

The key initiatives are highlighted below.

1.    Combatting the COVID-19 outbreak

• RM3b for COVID-19 vaccine procurement; vaccination as early as March 2021 over 12 months for 27m people
• RM1b for additional supplies for frontliners, including Ministry of Health (MOH), National Security Council (NSC) and other relevant agencies
• RM150m for recruiting 3,500 healthcare personnel, including assistant medical officers, paramedics, laboratory technicians and nurses
• RM100m for treatment of both COVID-19 and non-COVID-19 patients by private hospitals
• Extension of personal tax reliefs (refer to “Key tax measures" below)
• Supporting COVID-19 screening of foreign workers in red zones funded by SOCSO

2.    Safeguarding the welfare of the people

Digital assistance

• RM500m for free 1GB monthly internet data until April 2021
• Special telco package for SPM or STPM candidates and higher learning institute students until April 2021

Loan moratorium and repayment assistance

• Moratorium extension and loan repayment assistance for impacted individuals and companies, especially flood victims, B40 and M40 groups, and small and medium enterprises (SMEs)        
• Education loan moratorium and repayment assistance for Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) and Majlis Amanah Rakyat (MARA) borrowers until 31 March 2021   

EPF and tax relief

• Advance of up to RM1,000 from the amount applied under the EPF i-Sinar Category 2 facility
• Tax relief for aid contributions

Other programs

• RM50m Food Basket Program to provide essential food items worth RM100 to each eligible household
• RM25m for GLC/GLIC Disaster Relief Network program as matching grants
• Payment of direct aid, i.e. Bantuan Prihatin Nasional 2.0 Phase 2 and Bantuan Prihatin Rakyat Phase 1, brought forward

3.    Supporting business continuity

Businesses

• Enhancement of Danajamin PRIHATIN Guarantee Scheme (SJPD)
• Increase the maximum financing from RM500m to RM1b
• Expand the scope of financing to cover working capital with a guarantee period of up to 10 years
• Allow foreign-owned companies operating in Malaysia to obtain the SJPD guarantee, provided that Malaysian employees account for at least 75% of their workforce
• Relaxation of conditions for the Prihatin Employment Insurance System program (SIP PRIHATIN). Eligible applicants are able to apply for financial assistance of 30% of their monthly salary for a period of three months.

SMEs and micro-enterprises

• RM1b microcredit scheme for SMEs and micro-enterprises to be expedited
• RM650m for PERMAI Prihatin Special Grant for SMEs
• RM300m for SME and micro SME e-Commerce campaign and Shop Malaysia Online campaign
• Effective period covering one’s inability to perform contractual obligations (including hire purchase or lease contracts or credit sales contracts) extended to 31 March 2021
• Business financing rescheduling program available for affected MARA entrepreneurs
• 30% rental discount on MARA’s business premises from November 2020 to April 2021

Transport

• RM1b guarantee on financing for the Bus and Taxi Hire Purchase Rehabilitation Scheme
• RM66m for a one-off assistance of RM500 for tourists guides, as well as e-hailing, taxi and bus drivers
• RM24m for full contribution coverage for delivery riders under the SOCSO Self-Employment Social Security Scheme

Utilities

• Electricity bill support: 10% discount until March 2021 for six business sectors and up to 9% bill reduction from January 2021 to June 2021 for all users

Key tax measures

Key tax measures under the PERMAI Assistance Package include:

• Enhancement of Wage Subsidy Programme 3.0
• HRDF levy exemption
• Further extension of special deduction on rental discounts given to tenants
• Extension of personal tax reliefs
• Extension of sales tax exemption on passenger cars
• Reduction of ownership period to enjoy excise duty and sales tax exemption on budget taxis