KUALA LUMPUR, July 17 ― DAP has proposed to the Ministry of Finance (MoF) an RM45 billion recovery and stimulus plan in order to lift Malaysia’s economy out of the doldrums and help those in dire need of aid.
A minimum of RM4 billion should go to the Ministry of Health (MoH), RM30 billion in financial grants and subsidies for the economic sector, RM6 billion in work hiring incentives and RM5 billion for households.
In addition, they also asked for an interest-free bank loan moratorium to be applicable to all except the top 20 per cent, which they said would help approximately eight million individuals and companies.
“The cost should be borne by the banking industry, which recorded a healthy profit after tax of nearly RM23 billion for 2020 as compared to RM32.3 billion in 2019,” they said in a statement today.
A delegation comprising DAP secretary-general Lim Guan Eng, Damansara MP Tony Pua and Batu Gajah MP V. Sivakuamar were invited to MoF to discuss the National Recovery Plan (NRP) with Finance Minister and also NRP coordinating Minister Datuk Seri Tengku Zafrul Abdul Aziz on Thursday, July 15.
They spoke about how MoH needs to ramp up testings, enhance the quarantine process, increase manpower in hospitals and upgrade the capacities of hospitals.
As part of the financial grants and subsidies, RM15 billion should go to investments in pandemic proof grants and soft loans with these grants aimed at targeting small businesses struggling to stay afloat.
They proposed wage incentives of RM500 a month to local employees and hiring incentives of RM300 per month to employers adding that this would help the youths as unemployment rate is at 13.4 per cent since March 2021.
They also proposed to fix the government aid package to the M40 groups from RM250 to RM1,100. For the hardcore poor from RM1,300 to RM2,500 and for the B40 group an increase from RM800 to RM1,900.
“This proposal acknowledges the difficulties M40 families (as well as the overall middle class that transcends the M40 classification) face, and will require upgrading payments announced in the recent Pakej Perlindungan Rakyat Dan Pemulihan Ekonomi.
“Additionally, we propose that the Covid-19 fund be extended well after 2022 to reduce a severe negative shock to a recovering economy. The extended expiry date should be aligned with the 10-year period of looser debt-GDP and debt service ratios,” they said.
“It is clear that the time to strike and make substantial cash injections into the economy is now. Any delay will result in more jobs lost, leading to more Malaysians requiring economic support to survive. The government will then have to fork out even more money to cushion the impact, or face further decrease of economic growth.”