By Xavier Kong
EMPLOYEES Provident Fund (EPF) members under the age of 55 can make withdrawals from Account 2 at a rate of RM500 per month for the next 12 months, with applications starting from April 1.
“This is expected to benefit 12 million people, with an estimated withdrawn amount of RM40 bil. I hope this initiative, along with the reduced deduction rate of 4% for employee EPF that will take effect from April, will help to put more money in the pockets of the workers for daily essentials,” said Prime Minister Tan Sri Muhyiddin Yassin.
In an address to the nation today (March 23), he advised the people to use this money for essential goods, utility bills or rental payments, and to ensure that there is food on the table for the whole family. He added that there will be an announcement for a new economic package on March 30, for the medium-term strengthening of the Malaysian economy.
“While it may be a small amount, and meant to be saved for old age, this will be allowed by the government as there are those who need it,” he added.
The second initiative is for a further allocation of RM500 mil to the Ministry of Health to support the efforts against Covid-19, with the allocation to go towards the purchase of more equipment such as ventilators and intensive care unit equipment, additional personal protective equipment for medical staff in the public sector, as well as laboratory needs for the screening of Covid-19.
“To expedite the process of purchasing critical items, the government has approved the protocols of procurement from the state of emergency,” said Muhyiddin.
A further RM100 mil will also be allocated to the Ministry of Health to appoint a further 2,000 contract staff, especially nursing staff, to ensure sufficient staff at all hospitals to handle the Covid-19 epidemic.
The third initiative is for RM130 mil to be allocated for the governments of each state, “with an equal allocation regardless of political party,” to aid in handling the Covid-19 crisis. The allocation is meant for hawkers and small business owners that are affected by the crisis, as aid for Covid-19 patients and their families, as well as to prepare the necessary for state government staff that are involved in handling the crisis.
The fourth initiative involves the deferment of between three and six months for the repayment to the National Higher Education Fund Corporation (Perbadanan Tabung Pendidikan Tinggi Nasional – PTPTN), which would put an estimated RM750 mil in the hands of the approximately 1.5 million people who are currently repaying their PTPTN loans.
Besides these initiatives, the government is also considering additional measures to aid the people, which will form the rest of the economic stimulus and aid package that will be announced on March 30.
He also shared that the government is aware of the difficulties being faced by the low-income segment, as well as small business owners and gig economy workers, especially those that provide a face-to-face service such as taxi and e-hailing drivers.
“There are many that have lost their source of income. Small business owners that have had to close their businesses. Grab and taxi drivers that have lost customers. Daily-rate workers who have not received any pay, as well as the employers who have to bear losses due to their businesses being shut down for the time being,” said Muhyiddin.
Following his address, the prime minister also shared that almost 90% of the nation is in accord with the Movement Control Order (MCO) according to reports from the police and the armed forces, but there are still people flouting the order. He hoped that it will reach a 100% compliance rate.
He has also guided that there will be discussions between the government and mask manufacturers, to lower the pinned price of face masks to a reasonable price and to ensure a sufficient supply.
However, there is an issue with supplies for the manufacturing of face masks, as there are delays with obtaining the materials, which are imported. There is also a ban on the export of face masks in Malaysia, to ensure that there is a sufficient supply in Malaysia, as well as to import 10 million masks from China, with each mask priced at more than RM1.18. The masks will be distributed for free to the people in need, as a contribution from the government.
As for the question of whether or not the MCO will be extended, it will depend on the number of patients, which will be scrutinised again at the end of the MCO. Should the numbers not be satisfactory, the MCO may be extended by “a week, perhaps two, depending on the situation.”
Muhyiddin also called for all who reside in Malaysia, whether or not they are nationals, to step forward for testing and screening should they exhibit symptoms, as this is a matter of safety. He urged employers to advise their workers to step forward for treatment if necessary, or to stay at their residences until the end of the MCO. He shared that there will be a reduction in cost for those who head to the hospital.
He also reminded the private healthcare sector to set a reasonable rate for the Covid-19 screening, as it is part of their social responsibility to the people.
At the time of writing, Malaysia has 1,306 confirmed cases for Covid-19, with 139 recoveries and 11 deaths. – March 23, 2020
