National Economic Recovery Plan (PENJANA)

NATIONAL ECONOMIC RECOVERY PLAN (PENJANA)

What is National Economic Recovery Plan (PENJANA)?ย 

We are now living in unprecedented times of a global pandemic due to COVID-19. The Government has steered the country through these challenging times by taking an approach focused on 6 key steps and we are now entering the 4th steps, Recovery.

The Government unveils National Economic Plan, or the PENJANA (Pelan Jana Semula Ekonomi Negara) upon entering Recovery steps. 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.

Empower People

1. Wage Subsidy Programme

๐Ÿ‘ซBeneficiaries: 2.7 million workers
๐Ÿ—“Timeline: Mid June to end September 2020
๐Ÿ’ฐQuantum: RM5.3 billion
๐Ÿ“Objective: To promote employee retention and reduce layoffs by extending the wage subsidy programme
๐Ÿ“ŒContent:
๐Ÿ‘‰The wage subsidy programme will be extended for a further 3 months with subsidy of RM 600 per employee for all eligible employers
๐Ÿ‘‰Employers are allow to implementย reduced work week andย reduced pay (maximum allowable reduced pay is 30%)
๐Ÿ‘‰Allow employers to receive wage subsidy for employees on unpaid leave, subject to employees receiving the subsidy directly (only applicable for tourism sector ad business which are prohibited from operating during CMCO)
๐ŸŒFurther information๏ผšwww.perkeso.gov.my

2. National Employment Services Job Portal Upgrade

๐Ÿ‘ซBeneficiaries: 50,000 unemployed
๐Ÿ—“Timeline: Long-Term
๐Ÿ“Objective: To improve employment by enhancing the PERKESO job portal
๐Ÿ“ŒContent:
๐Ÿ‘‰The National Employment Services under PERKESO will be upgraded as follows:
i. Enhancement of the job portal and employment placement services
ii. Collaboration with the private job sites for employment matching
๐ŸŒFurther information๏ผšย www.perkeso.gov.my

3. Hiring and Training Assistance for Businesses

๐Ÿ‘ซBeneficiaries: 300,000 job seekers
๐Ÿ—“Timeline: Mid June to end December 2020
๐Ÿ’ฐQuantum: RM1.5 billion
๐Ÿ“Objective: To encourage hiring of employees by providing financial incentives to employers
๐Ÿ“ŒContent:
๐Ÿ‘‰Youth:
i. RM 600 per month for apprenticeships for school leavers and graduates for up to 6 months
๐Ÿ‘‰Unemployed Workers:
i. Below 40 years old: RM 800 per month up to 6 months
ii. 40 years okd and above: RM 1,000 per month up to 6 months
iii. Training allowance of RM 4,000 per individual for those retrenched but not covered under the EIS

๐ŸŒFurther information๏ผšwww.perkeso.gov.my

4. Reskilling and Upskilling Programmes

๐Ÿ‘ซBeneficiaries: 200,000 Youth and Unemployed
๐Ÿ—“Timeline: Mid June to end December 2020
๐Ÿ’ฐQuantum: RM2 billion
๐Ÿ“Objective: To provide upskilling for unemployed workers
๐Ÿ“ŒContent:
๐Ÿ‘‰Public private collaboration on upskilling in sectors such as E&E and ICT for key investors (MIDA, corridor authorities)
๐Ÿ‘‰Incentivise further studies, focused on short courses in local universities
๐Ÿ‘‰Leverage entrepreneurship programs delivered by MOA, MARA, MEDAC
๐Ÿ‘‰Provide training subsidy of up to RM 800 per month for 6 months through the Securities Industry Development Corporation (SIDC)
๐ŸŒFurther information๏ผšwww.penjana.treasury.gov.my

5. Gig Economy Social Protection and Skilling

๐Ÿ‘ซBeneficiaries: 30,000 gig economy employees
๐Ÿ—“Timeline: Beginning August 2020
๐Ÿ’ฐQuantum: RM75 million
๐Ÿ“Objective: To promote the gig economy and provide a
social safety net system for the gig economy
and informal sector workforce
๐Ÿ“ŒContent:
๐Ÿ‘‰To promote the gig economy and provide a social safety net system for the gig economy and informal sector workforce
๐Ÿ‘‰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
๐ŸŒFurther information๏ผšwww.perkeso.gov.myย โ€ขย www.kwsp.gov.myย โ€ขย https://glowmalaysia.com/

6. Flexible Work Arrangement Incentives

๐Ÿ‘ซBeneficiaries: All employees working from home
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM800 million
๐Ÿ“Objective: To encourage work-from-home arrangements by providing support to both employers and employees
๐Ÿ“ŒContent:
๐Ÿ‘‰ Government provide:
i. Further tax deduction for employers which implement Flexible Work Arrangements (FWAs) or undertake enhancement of their existing FWAs (effective 1st July 2020)
ii. Individual income tax exemption of up to RM5,000 to employees who receive a handphone, notebook & tablet from their employer (effective 1st July 2020)
iii. Special individual income tax relief of up to RM2,500 on the purchase of handphone, notebook & tablet (effective 1st June 2020)
๐Ÿ‘‰SOCSO provide:
i. Coverage for workers involved in accidents while working at home under the EIS
๐ŸŒFurther information๏ผšwww.hasil.gov.myย โ€ขย www.perkeso.gov.my

7. Child Care Subsidy

๐Ÿ‘ซBeneficiaries: Approximately 8,000 childcare centres, 5,000 households and
estimated 10,000 new early education practitioners
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM200 million
๐Ÿ“Objective: To support working parents during the CMCO period by subsidising child care expenses
๐Ÿ“ŒContent:
๐Ÿ‘‰ Working parents:
i. eVouchers of RM 800 per household for mobile childcare services, to be utilised from now till end of August 2020
ii. 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
๐Ÿ‘‰Childcare centre:
i. One-off grant of up to RM5,000 per registered childcare centreย (up to 31st December 2020) to comply with new healthcare SOPs
ii. Incentive to train new practitioners for child nursing and early education course
๐ŸŒFurther information: http://ezi2care.jkm.gov.my

8. My30 Public Transport Subsidy

๐Ÿ‘ซBeneficiaries: 200,000 Malaysian public transport users
๐Ÿ—“Timeline: Mid June to end December 2020
๐Ÿ’ฐQuantum: RM200 million
๐Ÿ“Objective: To reduce the cost of daily public transportation
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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
๐ŸŒFurther information: www.myrapid.com.my

9. Social Assistance Support for Vulnerable Groups

๐Ÿ‘ซBeneficiaries: OKUs, single mothers and related NGOs
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM108 million
๐Ÿ“Objective: To provide social assistance to vulnerable groups such as OKUs and Single Mothers
๐Ÿ“ŒContent:
๐Ÿ‘‰One-off financial assistance RM300 to:
โ€ข 190,000 registered OKUs; and
โ€ข 150,000 single mothers (income below the poverty line)
โ€ข 2,000 volunteer Home Help Services
๐Ÿ‘‰Grant for relevant registered NGOs which support vulnerable groups
๐Ÿ‘‰PENJANA GLC Community – GLCs encouraged to adopt one community and will implement a social economic development project with the community
๐ŸŒFurther information: http://ezi2care.jkm.gov.my

10. PEKA B40 Healthcare Support

๐Ÿ‘ซBeneficiaries: B40 aged 40 and above
๐Ÿ—“Timeline: To begin immediately
๐Ÿ’ฐQuantum: RM50 million
๐Ÿ“Objective: To support the the healthcare needs of low-income groups
๐Ÿ“ŒContent:
๐Ÿ‘‰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;
โ–ธHealth screening
โ–ธ Medical device assistance
โ–ธ Cancer treatment incentives
โ–ธ Subsidy for transportation for health
๐ŸŒFurther information: www.pekab40.com.my

11. Internet Connectivity for Education & Productivity

๐Ÿ‘ซBeneficiaries: All
๐Ÿ—“Timeline: Mid June to end December
2020
๐Ÿ’ฐQuantum: RM3 billion
๐Ÿ“Objective: To support e-learning and productivity activities by providing free internet connectivity
๐Ÿ“ŒContent:
๐Ÿ‘‰Free 1Gb per day between 8am to 6pm for education, productivity (video conference applications) and news by participating telecommunication companies
๐Ÿ‘‰Free unlimited use of Governmentโ€™s COVID-19 applications and access to Ministry of Health and other Government websites
๐ŸŒFurther information: www.penjana.treasury.gov.my

Propel Businesses

1. Micros and SMEs E-commerce Campaign

๐Ÿ‘ซBeneficiaries: Malaysian MSMEs
๐Ÿ—“Timeline: June to September 2020
๐Ÿ’ฐQuantum: RM70 million
๐Ÿ“Objective: To encourage adoption of e-commerce by micro enterprises and SMEs in order to widen their market reach
๐Ÿ“ŒContent:
๐Ÿ‘‰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:
โ–ธ On-boarding training
โ–ธ Seller subsidy
โ–ธ Sales support
๐ŸŒFurther information: www.penjana.treasury.gov.my

2. “Shop Malaysia Online” for Online Consumption

๐Ÿ‘ซBeneficiaries: Malaysian MSMEs with e-commerce footprint and consumers
๐Ÿ—“Timeline: August to September 2020
๐Ÿ’ฐQuantum: RM70 million
๐Ÿ“Objective: To encourage online consumer consumption through e-commerce vouchers
๐Ÿ“ŒContent:
๐Ÿ‘‰The Government will collaborate with e-commerce platforms to Co-fund digital discount vouchers to encourage online spending on products from local retailers
๐ŸŒFurther information: www.penjana.treasury.gov.my

3. Technical and Digital Adoption for SMEs and MTCs

๐Ÿ‘ซBeneficiaries: SMEs and MTCs
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM700 million
๐Ÿ“Objective: To assist as well as incentivise SMEs and MTCs to digitalise operations and trade channels
๐Ÿ“ŒContent:
๐Ÿ‘‰The Government will continue to provide grants and loans to eligible enterprises for adoption or subscription of digitalisation services under the following programmes:
โ–ธ SME Digitalisation Matching Grant totalling RM100 million, in partnership with telecommunication companies
โ–ธ SME Technology Transformation Fund totalling RM500 million loan (application opens from July 2020)
โ–ธ Smart Automation Grant totalling RM100 million, capped at up to RM1 million per company
๐ŸŒFurther information: www.mida.gov.myย โ€ขย https://mdec.myย โ€ขย https://smebank.com.my

4. MyAssist MSME One Stop Shop

๐Ÿ‘ซBeneficiaries: Micro enterprises and SMEs
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM5 million
๐Ÿ“Objective: To provide guidance and facilitate the recovery process for Micro enterprises and SMEs
๐Ÿ“ŒContent:
๐Ÿ‘‰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.
๐Ÿ‘‰The services offered include guidance for:
โ–ธ Funding facility
โ–ธ Trade facilitation
โ–ธ Branding and promotion
โ–ธ Technology support
โ–ธ Legal
๐ŸŒFurther information: www.smecorp.gov.my

5. PENJANA SME Financing (PSF)

๐Ÿ‘ซBeneficiaries: Businesses in the critically affected sectors
๐Ÿ—“Timeline: Mid June 2020
๐Ÿ’ฐQuantum: RM2 billion
๐Ÿ“Objective: To assist SMEs adversely impacted by COVID-19 in order to sustain business operations
๐Ÿ“ŒContent:
๐Ÿ‘‰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.

6. PENJANA Tourism Financing (PTF)

๐Ÿ‘ซBeneficiaries: Tourism sector
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ’ฐQuantum: RM1 billion
๐Ÿ“Objective: To finance transformation initiatives by SMEs in the tourism sector to remain viable and competitive in the new normal
๐Ÿ“ŒContent:
๐Ÿ‘‰ Will be announced in July 2020
๐ŸŒFurther information: www.bnm.gov.my

7. PENJANA Microfinancing

๐Ÿ‘ซBeneficiaries: Micro enterprises and SMEs
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM400 million
๐Ÿ“Objective: To support micro enterprises through funding programmes
๐Ÿ“ŒContent:
๐Ÿ‘‰ Dedicated funding support for micro enterprises via:
โ–ธ New funding program for SMEs and micro enterprises at a subsidised interest rate of 3.5%
โ–ธ Aggregated approved financing will be capped at RM50,000 per enterprise
โ–ธ RM50 million is earmarked for women entrepreneurs
๐Ÿ‘‰A dedicated amount of the funding will be carved out e.g. for women, youth entrepreneurs and social enterprises
๐ŸŒFurther information: https://www.tekun.gov.myย โ€ขย https://www.mybsn.com.my

8. Bumiputera Relief Financing

๐Ÿ‘ซBeneficiaries: Bumiputera businesses
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM500 million
๐Ÿ“Objective: To ensure sustainability of shariah compliant Bumiputera entrepreneurs through financial support
๐Ÿ“ŒContent:
๐Ÿ‘‰ PUNB will provide RM200 million dedicated financial assistance for Bumiputera owned shariah compliant businesses in the form of:
โ–ธ Working capital
โ–ธ Operational expenditure
โ–ธ System automation
โ–ธ Equipment and expenditure to implement social distancing practices (eg. on PPEs)
โ–ธ Financing of RM 100,000 โ€“ RM 1 million for up to 5 years at 3.5% p.a. profit rates. Moratorium of up to 6 months from disbursement
๐Ÿ‘‰Through MARA, the Government will also allocate:
โ–ธ RM300 million working capital loans to assist affected Bumiputera entrepreneurs including training colleges
โ–ธ Maximum loan amount of RM1 million with 3.5% p.a interest rate
๐ŸŒFurther information: https://www.punb.com.myย โ€ขย https://www.mara.gov.my/en/index/

9. SME Go-scheme for Liquidity Support

๐Ÿ‘ซBeneficiaries: SME contractors
๐Ÿ—“Timeline: To begin in July 2020
๐Ÿ’ฐQuantum: RM1.6 billion
๐Ÿ“Objective: To provide liquidity for SME contractors to start delivering on Government projects
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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.
โ–ธ The scheme will benefit 16,000 G2 & G3 contractors
โ–ธ No deposits or collateral needed
โ–ธ SME Bank shall pay directly to the contractors and vendors based on the presentation of invoices/claims
๐ŸŒFurther information: https://www.smebank.com.my

10. Accelerated Payment Terms for GLC and Large Corporates Supply Chain

๐Ÿ‘ซBeneficiaries: Companies in supply chains of selected GLC and large
corporates
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ“Objective: To provide relief cashflow to SMEs who are part of the supply chain of GLCs and large corporates by accelerating payment terms
๐Ÿ“ŒContent:
๐Ÿ‘‰ To provide relief to SMEsโ€™ cash flows, the Government is encouraging GLCs and large corporations to accelerate their vendorsโ€™ payment terms.
๐Ÿ‘‰Selected GLCs and large companies have already committed to accelerate payment terms to their vendors:
โ–ธ Axiata and TM have reduced payment terms for selected vendors from 45 days to 14 days
โ–ธ TNB has a 7-days payment process
โ–ธ 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
๐ŸŒFurther information: www.penjana.treasury.gov.my

11. Tax Relief for COVID-19 Related Expenses

๐Ÿ‘ซBeneficiaries: All businesses
๐Ÿ—“Timeline: Immediately
๐Ÿ’ฐQuantum: RM600 million
๐Ÿ“Objective: To encourage businesses to adapt to new norms and adhere to SOPs through tax relief
๐Ÿ“ŒContent:
๐Ÿ‘‰ Extend the period and expand the scope of expenses allowed as tax deduction or capital allowance for COVID-19โ€™s prevention, including:
โ–ธ Covid-19 testing
โ–ธ Purchase of PPE and thermal scanners
๐ŸŒFurther information: www.hasil.gov.my

12. Financial Stress Support for Businesses

๐Ÿ‘ซBeneficiaries: All businesses
๐Ÿ—“Timeline: Beginning March 2020
๐Ÿ’ฐQuantum: RM2.4 billion
๐Ÿ“Objective: To ease financial stress on businesses through remissions of penalties related to late tax payments
๐Ÿ“ŒContent:
๐Ÿ‘‰ 50% remission of penalty for late payment of sales tax & service tax due and payable from 1st July 2020 to 30th September 2020
๐Ÿ‘‰ Extension of special tax deduction for renovation and refurbishment of business premises to 31st December 2021
๐Ÿ‘‰ Extension of Accelerated Capital Allowance on eligible capital expenses including ICT equipment to 31st December 2021
๐Ÿ‘‰ Extension of special deduction equivalent to 30% reduction in rental for SMEs to 30th September 2020
๐ŸŒFurther information: www.hasil.gov.my

13. Social Enterprises Elevation

๐Ÿ‘ซBeneficiaries: Relevant social enterprises
๐Ÿ—“Timeline: Beginning August 2020
๐Ÿ’ฐQuantum: RM10 million
๐Ÿ“Objective: To encourage social enterprise related activity through contribution matching
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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
๐ŸŒFurther information: https://mymagic.my/

14. Spur Set Up of New Businesses

๐Ÿ‘ซBeneficiaries: New businesses and SMEs involved in M&A
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ’ฐQuantum: RM300 million
๐Ÿ“Objective: To encourage the establishment of new businesses and transactions such as mergers and acquisitions
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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
๐Ÿ‘‰ 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
๐ŸŒFurther information: www.hasil.gov.my

Stimulate the Economy

1. Dana Penjana Nasional

๐Ÿ‘ซBeneficiaries: Start-ups and Local private sector Venture Capital funds
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ’ฐQuantum: RM1.2 billion (RM600 million from domestic source)
๐Ÿ“Objective: To support digitalisation of Malaysian businesses by channelling funding from international investors into the local venture capital space
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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:
โ–ธ Seed Stage / Co-creation Funds
โ–ธ Series A/B Funds
โ–ธ Growth Stage Tech Funds
โ–ธ Venture Debt Funds
โ–ธ Opportunistic Funds (e.g. e-sports, healthcare)
๐Ÿ‘‰ 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.
๐ŸŒFurther information: https://www.treasury.gov.my/

2. Technology Innovation Sandbox

๐Ÿ‘ซBeneficiaries: Start-ups
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM80 million
๐Ÿ“Objective: To encourage innovation and creativity that can propel the digitalisation of service delivery
๐Ÿ“ŒContent:
๐Ÿ‘‰ An innovation sandbox will be developed to :
โ–ธ Pilot new technology solutions
โ–ธ Provide relaxation of regulations in order to text new technology solutions (e.g. drone delivery, autonomous vehicles)
๐ŸŒFurther information:https://www.mosti.gov.my/web/en/

3. Digitalisation of Government Service Delivery

๐Ÿ‘ซBeneficiaries: Public
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM20 million
๐Ÿ“Objective: To enhance efficiency of government services delivery in light of new social distancing norms
๐Ÿ“ŒContent:
๐Ÿ‘‰ Accelerate the digitalisation of government services to reduce face-to-face transactions. This includes, but not limited to:
โ–ธ Stamp assessment & stamp duties
โ–ธ Unclaimed money
โ–ธ Online interviews for Government scholarships
๐Ÿ‘‰ Hackathons to crowdsource solutions for future digitalisations
๐ŸŒFurther information: https://www.treasury.gov.my/ย โ€ขย https://www.jpa.gov.my/ย โ€ขย http://www.hasil.gov.my/ย โ€ขย https://www.audit.gov.my/

4. National “Buy Malaysia” Campaign

๐Ÿ‘ซBeneficiaries: Local businesses
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM20 million
๐Ÿ“Objective: To encourage the consumption of Malaysian-made products and services
๐Ÿ“ŒContent:
๐Ÿ‘‰ Push for consumption of local products and services through:
โ–ธ Promoting the โ€œBuy Malaysiaโ€ campaign by the Government and relevant agencies
โ–ธ Ensuring local product tagging or identification is compulsory for big supermarket
chains
โ–ธ Create dedicated Malaysian products channels on major digital platforms
๐ŸŒFurther information: https://www.kpdnhep.gov.my/en/

5. ePenjana Credits in e-wallet

๐Ÿ‘ซBeneficiaries: Approximately 15 million Malaysians
๐Ÿ—“Timeline: July to September 2020
๐Ÿ’ฐQuantum: RM750 million
๐Ÿ“Objective: To encourage e-wallet usage for safe, contact-free payment experience and to boost consumer spending
๐Ÿ“ŒContent:
๐Ÿ‘‰ Encourage contact-free payment through the provision of:
โ–ธ RM 50 worth of e-wallet credits
โ–ธ Additional RM50 in value through vouchers, cashback and discounts by e-wallets
โ–ธ Only for offline/physical purchases
๐Ÿ‘‰ This is applicable to all Malaysians aged 18 and above; and earning less than RM100,000 annually
๐ŸŒFurther information: https://www.treasury.gov.my/

6. Incentives for Property Sector

๐Ÿ‘ซBeneficiaries: Homeowners, Prospective homebuyers
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM1 billion
๐Ÿ“Objective: To stimulate the property market and provide financial relief to home buyers
๐Ÿ“ŒContent:
๐Ÿ‘‰ Home Ownership Campaign (HOC) to be reintroduced:
โ€ข 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.
๐Ÿ‘‰ 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)
๐Ÿ‘‰ 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.
๐ŸŒFurther information: https://www.kpkt.gov.my/ย โ€ขย https://www.bnm.gov.my/ย โ€ขย http://www.hasil.gov.my/

7. Tax Incentives for Purchase of Passenger Cars

๐Ÿ‘ซBeneficiaries: Automotive Sector, Consumer
๐Ÿ—“Timeline: Mid June to end December 2020
๐Ÿ’ฐQuantum: RM897 million
๐Ÿ“Objective: To stimulate the automotive sector and provide financial relief to car buyers
๐Ÿ“ŒContent:
๐Ÿ‘‰ Full sales tax exemption on locally assembled cars
๐Ÿ‘‰ 50% sales tax exemption on imported cars
๐ŸŒFurther information: ย http://www.customs.gov.my/en

8. Extended Service Hours in the New Normal

๐Ÿ‘ซBeneficiaries: Public
๐Ÿ—“Timeline: Beginning mid June 2020
๐Ÿ’ฐQuantum: RM20 million
๐Ÿ“Objective: To maximise productive capacity while maintaining SOPs & new normal workplace best practices
๐Ÿ“ŒContent:
๐Ÿ‘‰ UTCs new operating hours:
โ€ข Peninsular
Weekday: 8 am – 9 pm
Weekend: 8 am – 5 pm
โ€ข Sabah/Sarawak
Weekday: 8 am – 5 pm
Weekend: 10 am – 7 pm
๐ŸŒFurther information: https://www.utc.my/

9. Malaysia as Attractive Horizon for Businesses

๐Ÿ‘ซBeneficiaries: Foreign Direct Investments
๐Ÿ—“Timeline: July 2020 to December 2021
๐Ÿ’ฐQuantum: RM50 million
๐Ÿ“Objective: To attract foreign companies to relocate their business into Malaysia by addressing the risk of re-shoring
๐Ÿ“ŒContent:
๐Ÿ‘‰ Tax incentives for company relocating into Malaysia:
โ–ธ 0% tax rate for 10 years for new investment in manufacturing sectors with capital investment between RM300 – RM500 million
โ–ธ 0% tax rate for 15 years for new investment in manufacturing sectors with capital investment above RM500 million
โ–ธ 100% Investment Tax Allowance for 5 years for existing company in Malaysia relocating overseas facilities into Malaysia with capital investment above RM300 million
โ–ธ Special Reinvestment Allowance for manufacturing and selected agriculture activity, from YA 2020 to YA 2021.
โ–ธ Additional operating expenditure for Malaysian Investment Development Authority (MIDA) to undertake marketing and promotional activities
โ–ธ Establishment of Project Acceleration & Coordination Unit (PACU) at MIDA
โ–ธ Enhancement of Domestic Investment Strategic Fund
โ–ธ Manufacturing License approval for non-sensitive industry within 2 working days
๐ŸŒFurther information: https://www.mida.gov.my/ย โ€ขย http://www.hasil.gov.my/

10. Tourism Sector Support

๐Ÿ‘ซBeneficiaries: Tourism sector
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ’ฐQuantum: RM1.8 billion
๐Ÿ“Objective: To support the tourism sector during the COVID-19 period through tax incentives
๐Ÿ“ŒContent:
๐Ÿ‘‰ Tax incentives for the tourism sector:
โ–ธ Tourism tax exemption from 1st July 2020 to 30th June 2021
โ–ธ Extension of service tax exemption for hotels to 30th June 2021
โ–ธ Extension of period for income tax relief of RM1,000 for tourism expenses to 31st December 2021
โ–ธ Extension of period for deferment of tax instalment payment for tourism industry to 31st December 2020
๐ŸŒFurther information: https://www.treasury.gov.my/ย โ€ขย http://www.moh.gov.my/ย โ€ขย http://www.motac.gov.my/ย โ€ขย http://www.customs.gov.my/enย โ€ขย http://www.hasil.gov.my/

11. Arts, Culture, Entertainment, Events and Exhibitions Sector Support

๐Ÿ‘ซBeneficiaries: Arts, culture, entertainment, events and exhibitions sector
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM225 million
๐Ÿ“Objective: To support the arts, culture, entertainment and event industries adapt to the new normal
๐Ÿ“ŒContent:
๐Ÿ‘‰ Dedicated funding and support for the arts, culture, entertainment, events and exhibitions sector as follows:
โ–ธ 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
โ–ธ 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
โ–ธ RM35 million Dana Kandungan Digital under MDEC for projects in the creative sector with a focus on animation and visual effects
โ–ธ 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
๐ŸŒFurther information: https://www.kkmm.gov.my/

12. Agriculture and Food Sector Support

๐Ÿ‘ซBeneficiaries: Agriculture and food sector
๐Ÿ—“Timeline: Beginning June 2020
๐Ÿ’ฐQuantum: RM400 million
๐Ÿ“Objective: To provide financial relief for agriculture and food players affected by COVID-19 and MCO
๐Ÿ“ŒContent:
๐Ÿ‘‰ Dedicated support for the Agriculture and Food sector as follows:
โ–ธ Micro credit financing under Agrobank for agropreneurs totalling of RM350 million with interest rate of 3.5%
โ€ข Maximum loan size: RM50,000
โ€ข Tenure of loan: 5 years
โ–ธ Agrofood workforce mobility via incentives for pioneer companies to train and educate workforce
โ–ธ 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
๐ŸŒFurther information: http://www.moa.gov.my/ย โ€ขย https://www.agrobank.com.my/

13. Commodity Sector Support

๐Ÿ‘ซBeneficiaries: Commodity sector
๐Ÿ—“Timeline: Beginning July 2020
๐Ÿ’ฐQuantum: RM200 million
๐Ÿ“Objective: To provide financial relief for commodity players
๐Ÿ“ŒContent:
๐Ÿ‘‰ Support the commodity sector through 100% export duty exemption from 1 July 2020 to 31 December 2020:
โ–ธ Crude Palm Oil
โ–ธ Crude Palm Kernel Oil
โ–ธ Refined Bleached Deodorized Palm Kernel Oil
๐ŸŒFurther information: http://www.customs.gov.my/en

14. Proposed COVID-19 Temporary Measures Act

๐Ÿ‘ซBeneficiaries: Relevant parties such a manufacturer, renters etc
๐Ÿ—“Timeline: To be tabled during July 2020 Parliament session
๐Ÿ“Objective: To mitigate potential negative impact to economic activities caused by contractual breaches and enforcement of insolvency actions on groups affected by COVID-19 and MCO
๐Ÿ“ŒContent:
๐Ÿ‘‰ Introduction of COVID-19 Temporary Measures Act to minimise disruption to social and economic well-being:
โ–ธ Temporary legislative measure to minimise the impact of this pandemic
โ–ธ 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
๐ŸŒFurther information: http://www.bheuu.gov.my/

15. Sukuk Prihatin

๐Ÿ‘ซBeneficiaries: Connectivity in schools, eligible micro enterprises (focusing
on women entrepreneurs) and sectors such as healthcare sectors
๐Ÿ—“Timeline: To be determined upon issuance
๐Ÿ’ฐQuantum: Issuance in Quarter 3 2020
๐Ÿ“Objective: To facilitate the Rakyatโ€™s participation in supporting post-recovery economic measures
๐Ÿ“ŒContent:
๐Ÿ‘‰ 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:
โ–ธ Scheduled to be issued in Quarter 3, 2020 with a fully digital subscription process
โ–ธ 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
๐ŸŒFurther information: https://www.penjana.treasury.gov.my/ย โ€ขย https://www.bnm.gov.my/

For further information, please refer to PENJANA outlines bookletย .