When world is dealing with Covid-19 pandemic, Malaysia felt this heat as well. The country shut down all its commercial and economic activities till the authority felt its safe for everyone to collaborate once again. The government of this country also equipped themselves to deal with this devastating crisis period. They realized very early that businesses will fall apart during this Covid pandemic.
To deal with such downfall and keeping up with the Malaysian business, the nation has come up with various compensations and stimulus package strategies. The core aim of all these is to recover the damaged economy right after Corona virus spread out goes under control in Malaysia. We through this article will get to know more about government initiatives during this COVID crisis and how introduction of such initiatives can help out Malaysia business.
Compensations packages to aid business in Malaysia
During Corona virus pandemic Malaysian social, political and economical condition went through critical point. The government of Malaysia took various humanitarian and business friendly strategies to deal with several shortcomings in businesses that are expected to occur in this country right after COVID-19 lockdown ends. Let us see what stimulus packages the government of this country kept for aiding the economy of Malaysia during this critical global pandemic period.
- Most of the adverse reaction of Covid-19 crisis falls on the small businesses in Malaysia. To keep that particular aspect in mind, the government of Malaysia has announced various stimulus packages especially to save small to mid size businesses and to keep up with the economic recovery of Malaysia.
- A RM250 billion stimulus package has been announced to fight against aftermath COVID-19 crises and save small to medium size companies in this country. It was announced in March 2020 by the Prime Minister of Malaysia.
- This compensation package has been made for one- off cash assistance, rebates and credit facilities for businesses and investors who are categorized under B40 or M40 groups.
- The aim of such stimulus package proposal is to deal with the expected adverse result of the B40 and M40 types of business groups due to the pandemic crisis.
- A direct fiscal injection of RM 25billion has also been included along with all other proposed government initiations to handle the economic jeopardy of this nation.
- There are several other additional packages that has been discussed out and finalized in government meetings to deal with aftermath unemployment rate that is expected to shoot up right after COVID-19 pandemic.
- The packages introduced by the government, however, can put a pause on sudden spike of job losses and business crisis during that time. The tourism Recovery Committee are also acting at this time and discussing their way to recover the downfall and thinking of subsidies for major damages and find fresh markets for flourishing this sector once again.
- To minimize unemployment and possible raw material shortage in the nation the government further allocated a fund of RM 1 billion on agricultural sectors to secure food supplies in nation.
Last but not the least, experts predict that Covid-19 will shrink down Malaysia’s GDP by 2.9% in 2020 and the rate will remain at the down graph throughout the year. The short out of Malaysia business after Covid-19 will expect to cause 2.4 million people lose their job. Such condition may raise food crisis due to import export shortage, lack of workforce in agricultural sectors and international trade collaborations.
Other than these a stimulus fund of RM50 billion has been kept aside for assisting bigger industries which also can fall short of capital due to the present scenario. It has been stated by the government that once, the crisis period is under control, this compensation package will be distributed as a mean of loan schemes, which may recover the economic recession in the country.
On the other hand, individual provinces of Malaysia have come up with their own economy rescue programs. They have publicly announced several effective stimulus packages to deal with the Covid-19 crisis. Province for instance; Sarawak announced a RM 1.15 billion stimulus package program. They have also come up with additional facilities and compensations to influence businesses after the pandemic and therefore can fight against the adverse downfall of COVID-19 Malaysia business.