Sin Chew Daily

On Monday, prime minister Tan Sri Muhyiddin Yassin unveiled the RM15 billion PERMAI aid package, the fifth stimulus package introduced by the government since the onset of the coronavirus outbreak in the country.

Under the new package, the government will implement 22 initiatives aimed at lessening the burden of the people as well as affected local businesses, anchored on three main objectives of combating the virus, safeguarding the welfare of the people and supporting business continuity.

The PERMAI package launched in conjunction with MCO 2.0 is more broad-based and benefiting a much larger segment of the Malaysian society compared to earlier packages, and is therefore widely approved by thel public as well as the business community, in particular the improved wage subsidy program. Eligible employers in MCO states will receive a wage subsidy of RM600 for each of their employees earning less than RM4,000 a month, for the period of one month. In addition, the wage subsidy limit of 200 employees for each employer will now be increased to 500 employees.

To SME employers and employees alike, having experienced the tremendous blow from the economic fallout last year, and now a second round of MCO just as they are about to be back on their own feet again, this PERMAI package comes as a timely relief.

Economists opine that employers who have planned to trim their manpower may put that plan on hold for the time being. Nevertheless, some feel that the one-month wage subsidy period is too short and have urged the government to review the scheme, say, by extending the scheme for three months for more pronounced effects.

Another big news for the employees is the more relaxed application criteria for the employment insurance system (EIS) program. Employees not meeting the minimum contribution conditions can now apply for EIS of 30% of their monthly salaries for a period of three months. This will help those affected by the pandemic by offering temporary financial support before they they find their next job.

The government has the duty to make sure that every single cent set aside for the PERMAI package is effectively used to benefit the targeted groups without delay or omission. While some may find the latest package irrelevant to them, but bear in mind that there are still many in our society who urgently require a helping hand from the government. Those with the financial capability should also do their best within their own means to help the underprivileged in our midst in erecting a caring society as we fight the virus together in unity.

Given the severity of the situation, there is a strong likelihood the MCO will be further extended, with many low-income households and individuals continuing to take the brunt. As such, an effective COVID-19 combat plan must also be complemented with a comprehensive economic stimulus package so that Malaysians can wholeheartedly fight the virus without having to worry about their livelihoods, and so that neither our national economy and healthcare system will collapse concurrently.

To achieve its desired goals, it is imperative that the government closely monitor its execution and cut back unnecessary red tape to ensure that the targeted groups will truly benefit from it.

Experts have reminded that the versatility and dynamism of post-MCO or post-pandemic recovery will very much depend on the effects of government stimulus.

The government may have to expand the allocations to support the economy if the MCO is extended, and may have to adopt a more relaxed approach in implementing the fiscal budget. Under such circumstances, public debts will invariably rise and could further burden the national coffers. All this sums up to the cost of fighting the virus and the government should have prepared for it.