KUALA LUMPUR, March 16 — Senior minister Datuk Seri Azmin Ali said the Economic Action Council (EAC) may introduce two economic measures weekly in order to help the economy and those affected by the Covid-19 outbreak.
The EAC are meeting for the first time today, together with prime minister Tan Sri Muhyiddin Yassin, and will do so every week on Monday to address economic woes, namely the drop in global oil prices.
He said Prime Minister Tan Sri Muhyiddin Yassin would decide whether the announcement of the measures had to go through Cabinet, as per standard operating procedure.
“In my ministry, which overlooks the ministries of finance, economic affairs and international trade and industry, we were told to recalibrate the economic stimulus packages to properly address the Covid-19 crisis.
“The EAC will meet for the first time (today) and from now on we hope to announce at least two economic measures weekly (every Monday) to contain the pandemic, “ Azmin told The Star.
Just before he was ousted, former prime minister Tun Dr Mahathir Mohamad, announced a RM20 billion economic stimulus package to cushion the impact of Covid-19. This includes a 15 per cent discount on electricity bills for airline companies, shopping malls and exhibition malls.
To stimulate the tourism industry, taxes for hotels will be reduced and the levy imposed for training will be removed temporarily.
The employers’ contribution to the Employees Provident Fund will also be reduced from 11 per cent to 7 per cent, allowing employers to have more money in hand.
This will take effect from April 1 to December 31. It will potentially unlock up to RM10 billion worth of private consumption.
Mahathir also introduced a slew of other incentives for the Malaysian economy, including for those who lose their jobs and for the manufacturing and the transport sectors.
Then on March 13, Muhyiddin said that the government estimates that the gross domestic product will decline between 0.8 and 1.2 per cent, which is between RM10.8 billion and RM17.3 billion.
The EAC will be chaired by Muhyiddin and comprise Finance Minister Tengku Zafrul Aziz, Azmin, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, Bank Negara Governor Datuk Nor Shamsiah Mohd Yunus and other experts.
