A Summary Of PENJANA: Hiring Incentive Scheme, RM50 E-Wallet Credits, Free Internet, Public Transport Subsidy, And More

Eunis Ong

Last updated 10 Jun 2020

Blogheader - PENJANA malaysia short term economy recovery plan

A RM35 Billion Short-Term Economic Recovery Plan

Prime Minister Tan Sri Muhyiddin Yassin addressed the nation at 3PM today, sharing details of the government's RM35 billion stimulas package. The Short-Term Economic Recovery Plan called PENJANA (Pelan Jana Semula Ekonomi Negara) will address 40 different initiatives and is put in place to help Malaysians and our economy tide through the Covid-19 pandemic.

The 40 initiatives were formed based on multiple goals, and emphasis is given to support unemployed Malaysians, employees and employers of small and medium-sized enterprises (SMEs), vulnerable communities such as individuals with special needs, as well as industries severely impacted by the outbreak and MCO.

Though the list is not exhaustive, we've summarized some of the pointers mentioned during the announcement and will update this piece once more confirmed details have been released!

Summary Of Announcement

To ease the financial burden of public transport users, the government has introduced the MY30 public transport subsidy - public transport users of all nationalities can obtain an unlimited travel pass for only RM30 per month (which means you'll only need to pay a mere RM1 per day).

Over 300,000 special needs individuals and single mothers who qualify for aid under the welfare department will receive a one-off aid of RM300.

1GB free internet will be provided to all Malaysians daily up till 31st December 2020 - available for use from 8am - 6pm for news, education, and the consumption of Covid-19 related news.

A Shop Malaysia Online initiative will be launched to encourage online shopping and to support local businesses of all sizes. Promotional codes and discount vouchers will be distributed on various e-commerce platforms such as Grab, Touch N Go E-Wallet, Shopee, Lazada, Boost, FashionValet, and more.

RM700 million will be allocated to help businesses digitalize their operations.

To encourage cashless payments, Malaysians aged 18 and above earning less than RM100,000 a year will receive RM50 e-wallet credits that will be matched with RM50 worth of discounts vouchers and cashback. These credits can be used for physical purchases paid with e-wallets.

The government will be providing more online services including stamping and e-interviews for government scholarships.

To encourage the hiring of youth, an incentive of RM600 per month will be given to employers who provide job opportunities and apprenticeships to fresh graduates.

Under the Hiring Incentive Scheme, companies that employ Malaysians aged below 40 will receive an incentive of RM800 per month per staff for 6 months, while those that employ staff aged above 40 or employees with special needs will receive RM1,000 per month for 6 months.

An allocation of RM2 billion for upskilling programmes such as short courses at specialized institutions, Train & Place Program, training subsidies, learning incentives, and more - targeted to boost employability and is expected to benefit over 200,000 people.

The Wage Subsidy Programme (WSP) will be extended by another three months and an additional RM5 billion has been allocated to the programme. Under the scheme, eligible employers may receive a subsidy of RM600 per month per employee. Employers who are unable to operate during the Conditional Movement Control Order (MCO) period are allowed to apply for the programme.

Employers that provide staff with benefits like mobile phones and laptops can enjoy income tax exemption of up to RM5,000. Employers can also benefit from incentives on taxes and staff insurance.