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The COVID-19 pandemic is taking a toll on the Malaysian economy as well as many other countries around the world. Industries such as travel, leisure & hospitality, tourism, airline, retail and many more are severely affected by the pandemic.
Grant Thornton in Malaysia will constantly update relevant information including the advice to businesses to help you navigate through these difficult times.
To help the people and businesses during lockdowns, the Malaysian government had introduced several stimulus packages.
On 27 February 2020, the Malaysian government had introduced the Economic Stimulus Package 2020 worth RM20 billion to ensure the economic risks associated with the outbreak is effectively addressed. On 16 March 2020, the Prime Minister had announced additional measures to enhance the Economic Stimulus Package 2020.
A second economic stimulus package worth RM250 billion was announced by on 27 March 2020 to strengthen the economy, as well as necessary measures to provide assistance to all Malaysians who are affected by the COVID-19 outbreak.
Further to the earlier Prihatin Rakyat Economic Stimulus Package, the Malaysian government announced additional measures valued at RM10 billion on 6 April 2020, aimed at helping businesses in particular SMEs to pull through this challenging period.
On June 9, 2020, Malaysia issued its fourth economic stimulus package, named the PENJANA, which is primarily aimed at helping businesses recover from the impact of the coronavirus pandemic. The package is valued at 35 billion ringgit. Some of the measures issued in PENJANA include new tax incentives, financial assistance for small and medium-sized businesses (SMEs), and job protection initiatives.
On January 18, 2021, Malaysia’s government launched PERMAI, a stimulus package valued at 15 billion ringgit aimed at providing vital support to businesses through various incentives in addition to strengthening the country’s welfare programs.
PEMERKASA+ is a response to the national lockdown measures, which were enforced from June 1, 2021, focused on three aspects: increase public healthcare capacity, continuing welfare programs, and supporting businesses. This includes 2.1 billion ringgit in grants to small businesses, loan moratoriums, and wage subsidies. The country has rolled out over 340 billion ringgit in stimulus measures to cushion the economic impact caused by the pandemic.
On June 28, 2021, Malaysia announced its latest economic stimulus package, named PEMULIH, in response to the indefinite extension of the national lockdown. The 150 billion-ringgit package includes 10 billion ringgit in direct- fiscal spending by the government in the form of wage subsidies, unemployment assistance, and cash aid.
While there may be some industries that are more directly impacted by the virus – including health and aged care, education and tourism – and no way to predict how many people may contract the virus, all industries will face issues around supply chain, workforce and cash flow.
With specialists across business risk, business continuity, workforce, tax, compliance, supply chain and restructuring, we are here to help. This may be an assessment of your risk and cash flow, identifying alternative suppliers, or preparation for meetings with suppliers, banks or the related government agency to access additional support or extensions.
Keep up to date with the latest alerts
The current situation continues to evolve and businesses will need to remain agile and alert. A good starting point on creating a response to COVID-19 is the World Health Organisation’s technical guidance and the Department of Disease Control which has released guidelines on how to mitigate the spread of COVID-19.