Here’s How M’sian Employees Will Benefit From The COVID-19 Economic Stimulus Package

In his announcement about Pakej Rangsangan Ekonomi Prihatin Rakyat (PRIHATIN) that totals to RM250 billion, Muhyiddin assured us that all Malaysians will reap benefits.

RM128 billion will be allocated for the welfare of the people, RM100 billion will be used to support SMEs, and RM2 billion will be used to strengthen the country’s economy.

For employees, here are the initiatives that were announced.

1. For Employees In The Medical Sector

RM500 million will be given to Kementerian Kesihatan
Malaysia (KKM). The government will further allocate an additional RM1
for the purchase of equipment and services to combat COVID-19,
including obtaining medical specialist services from private health services.

In the first economic stimulus package, the government had agreed to give a special allowance to doctors, nurses and other medical personnel involved in fighting the pandemic.

Now, the government
will increase the special allowance received from RM400 to RM600 a month
from April 1, 2020 until the outbreak subsides.

2. For Employees In The Security Forces

The government will
extend a special allowance of RM200 a month to members of the military,
police, customs, immigration, members of the Civil Defense Force and members of
RELA who are directly involved in the implementation of the Movement Control
Command (MCO).

This allowance will
also be paid from April 1, 2020 until the COVID-19 outbreak subsides. An
estimated 169,000 additional employees will benefit from this.

3. For Employees In Other Sectors

The government will prepare
Bantuan Prihatin Nasional, a one-off cash allocation of nearly RM10
, which for the first time will also be channelled to the M40

These include employees
in the private sector, FELDA settlers, farmers, fishermen, small traders, and
all those belonging to the M40 groups and below.

The total payment can
be broken down into:

  • RM1,600 to nearly 4 million households earning a monthly income of RM4,000
    and below
    . Payment of RM1,000 will be paid in April 2020, and RM600 in May
  • RM1,000 to almost 1.1 million households earning over RM4,000 to RM8,000.
    RM500 will be paid in April 2020, and the remaining RM500 in May.
  • RM800 to 3 million single individuals 21 years old and above with a monthly
    income of RM2,000 and below
    . The RM500 payment will be paid in April 2020,
    and the remaining RM300 in May 2020.
  • RM500 to 400,000 single individuals aged 21 years and over with monthly
    income of RM2,000 to RM4,000
    . A payment of RM250 will be made in April 2020
    and the remaining RM250 in May.

4. For Civil Servants Specifically

In recognition of civil
servants’ contributions, the government will provide one-off cash assistance
of RM500
to over 1.5 million civil servants in grades 56 and under,
including contract workers
. The payment will be made by April 2020.

5. For Employees In Service Contracts

This includes
employees in cleaning services and food supply in schools, public schools,
public training institutions, and other government agencies including statutory

The government has
agreed to pay salaries incurred by involved contractors during the duration of
the MCO even when employees are absent from work.

It is estimated that more
than 80,000 employees will benefit from this initiative that involves an allocation
RM110 million.

Additionally, the government
has also agreed to extend the terms of the relevant service contract by 1
as a trade-off with the duration of the MCO.

6. To Protect Employees

The government will be
introducing a wage subsidy programme to help employers retain workers.

This is so that
employers can retain their employees and ensure that they still receive their

Through this programme,
the government will provide a wage of RM600/month for 3 months.

It is aimed at employees
earning less than RM4,000
and employers experiencing a 50% decrease in
income since January 1, 2020

Muhyiddin also
announced that employers must ensure that they do not dismiss employees
or direct them to take unpaid leave for 3 months after the program is

Also, employers are
not allowed to deduct an employee’s existing pay

With an allocation of RM5.9 billion, the move is expected to benefit 3.3 million workers.


While employees will be cared for during this time, employers seem to have gotten the short end of the stick.

Yes, there’s the wage subsidy programme, but that’s about it.

Compare this to Singapore’s measures in their recently announced Resilience Budget.

In summary, their government announced some special packages for HR leaders and employers.

A few of them include:

  • Job Support Scheme, where the government will offset 8% of wages for every local employee, up to a monthly wage cap of S$3,600, for three months.
  • Wage Credit Scheme, to co-fund wage increases for Singaporean workers earning a gross monthly wage of up to S$4,000.
  • Corporate Income Tax Rebate for Year of Assessment 2020, at a rate of 25% of tax payable, capped at S$15,000 per company.

With such examples, perhaps more could actually be done by the government to alleviate the burdens of employers apart from a wage subsidy.

Featured Image Credit: Muhyiddin Yassin FB

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