PKP 3.0: The government is urged to introduce a new stimulus package

Arabell Lawrence Anthony Soon

arabellaaa97@gmail.com

The latest movement control order (PKP) requires another stimulus package, said DAP secretary-general Lim Guan Eng.

Lim rejected Finance Minister Tengku Zafrul Abdul Aziz's claim that PKP 3.0 would not have a significant impact on economic growth.

“Try to say so to businesses in the tourism sector that are about to go bankrupt or those who suffer huge losses in the retail sector due to PKP.

"Did the National Alliance signal that no government assistance would be provided under PKP 3.0?" said Lim in a media statement today.

The former finance minister added that society and the economy now desperately need a “lifeline” and proposed a direct fiscal injection of RM45 billion to slow layoffs, job losses, business closures, and protect livelihoods.

Among others, Lim said the fiskan injection can be used as follows:

• RM12 billion for monthly welfare up to RM1,000

• Automatic moratorium on repayment of bank loans, except for the top 20 percent until the end of the vaccination program.

• RM6.5 billion to expand Malaysia@Work incentives for recruitment started in the Pakatan Harapan (PH) era

• RM3.5 billion to buy laptops for students to participate in e-learning activities

• RM23 billion for businesses affected by the recession and PKP in the form of grants, subsidies, guarantees, and credit.

On his proposal for a moratorium on loan payments, Lim said it had the potential to help eight million Malaysians.

He explained that it should be borne by banks that recorded a profit after tax of RM22 billion in 2020 and RM32.3 billion in 2019. Lim warned that without the new stimulus package, jobs and livelihoods would be affected, as would the projected 7.5 percent economic growth for the year.

PKP 3.0 nationwide was imposed on May 12 and will end on June 7. While most industries were allowed to operate as normal, schools remained closed and cross-state and district bans were enforced. Unlike the previous two PKPs across the country, this time the PKP is not included in the economic stimulus package.

Prime Minister Muhyiddin Yassin had earlier stated that the government had run out of money and Putrajaya had recently used funds from the National Trust Fund (Kwan).