PUTRAJAYA, Feb 27 — Tun Dr Mahathir Mohamad made his first official act as the interim prime minister by announcing today a RM20 billion stimulus package to brace the economy against the effects of the coronavirus disease (Covid-19) outbreak.
In a press conference that was delayed as he continued meeting politicians this afternoon, Dr Mahathir commended the country’s health workers for successfully containing Covid-19 in Malaysia.
However, he said the disease has already taken a toll on the economy, reducing visitors to the country during a crucial Visit Malaysia Year 2020.
“Therefore, the government will introduce 2020 Economic Stimulus Package to ensure economic risks associated with the outbreak is effectively addressed.
“Various strategies have been formulated to ensure that Malaysian economy remains on strong foundations,” he said.
The package will have three main thrusts: mitigating impact of Covid-19, spurring people-centric economic growth, and encouraging quality investments in the country.
Among key measures announced under the 2020 Stimulus Package are a one-off RM600 cash handout to public transport workers, a monthly special allowance of RM400 for medical doctors and health workers, and RM200 for immigration officers.
Sectors given focus are small-and-medium enterprises (SMEs) and tourism, those most impacted by the Covid-19 outbreak, which has claimed over 2,000 lives in China from were the novel coronavirus originated.
Dr Mahathir also announced a 15 per cent discount on the electricity bills for tourism agencies, hotels and carriers in a bid to boost tourism, among others, while hotels will be exempted from the new tourism tax and staff insurance contribution.
For SMEs, RM2 billion will be injected into a special assistance fund to provide low-interest rate loan while Bank Simpanan Nasional will provide RM200 million worth of microcredit at a 4 per cent interest rate.
Supply chains are among the worst hit by the pandemic as it takes a toll on exports, Dr Mahathir said.
He also expects tourist arrivals from China, one of the largest markets for Malaysia, to dip throughout the year with the virus outbreak seemingly showing no signs of abating.
Hotels and tourism agencies said the impact of the virus can be felt as early as December last year, when China first declared the outbreak a national emergency and began restricting travel.
Nearly three million Chinese tourists flew into Malaysia in 2018 alone, the third largest by country.
But Dr Mahathir said he believes the stimulus package would help the economy rebound.
Malaysia’s economy registered a healthy 6.5 per cent growth at the height of the Severe Acute Respiratory Syndrome outbreak in the third quarter of 2003, following a RM8 billion stimulus package that Dr Mahathir unveiled as then premier.
