2020††† |†††† Issue 6

 

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PRIHATIN RAKYAT ECONOMIC STIMULUS
PACKAGE 2020

 

On 27 March 2020, a substantial RM250 billion Prihatin Rakyat Economic Stimulus Package (ESP) was announced by the Prime Minister of MalaysiaThe ESP aims to provide support to everyone amid the COVID-19 crisis and comprises of:

†††††††††††

         RM128 billion: To protect the welfare of the people

         RM100 billion: To support small and medium enterprises (SMEs)

         RM20 billion: ESP announced on 27 February 2020 (refer to Axcelasia Insights, Issue 4)

         RM2 billion: To strengthen the nationís economy

 

The key cash handouts / cash flow reliefs, allocations and tax measures that can benefit people from all walks of life are summarised below:††

 

 

 

 

MCO and Other Tax Measures

 

We make reference to our Insights 2020, Issue 5 issued on 20 March 2020.

 

The IRB has issued various media releases, announcements and clarifications to facilitate taxpayers in managing their tax matters during the MCO period.

 

Key observations

 

         Overall, the Government is cognisant of the plight of the people and the hardship caused by the COVID-19 outbreak and this is obvious from the cash assistance and cash-flow reliefs given. The stimulus package involves a direct fiscal injection of funds amounting to RM25 billion whereas the other forms of support such as the deferment, moratorium and guarantee schemes for loan financing are provided by other agencies and financial institutions. Similar stimulus packages have been introduced in other countries as well.

 

         It is envisaged that these measures would boost domestic consumption and create a multiplier effect for the economy which has been significantly impacted by COVID-19. Notwithstanding this, the fiscal deficit will widen and this is acceptable under the current circumstances.

 

         We cannot discount an additional package later on which may well be part of the 2021 Budget expected to be announced on 2 October 2020.

 


If you require further information on the above matter, please contact our team: -

 

 Contacts Us

 

Corporate Tax and Advisory

Thang Mee Lee

mlee@axcelasia.com

 

Lim Kah Fan

lkf@axcelasia.com

Transfer Pricing

Leow Mui Lee

lml@axcelasia.com

 

Vivian New

vnlw@axcelasia.com

 

Sarah Chew

chl@axcelasia.com

Indirect Taxes

Dato Peter Tang

dpt@axcelasia.com

 

Brynner Chiam

bczh@axcelasia.com

Individual Tax

Thang Mee Lee

mlee@axcelasia.com

 

Brynner Chiam

bczh@axcelasia.com

Tax Audit and Investigation

Lim Kah Fan

lkf@axcelasia.com

 

Thisha Gunasilan

tg@axcelasia.com

Knowledge Management

Vivian New

vnlw@axcelasia.com

 

Shiranee Niles

smn@axcelasia.com



Group Key Contacts

 

 

Head of Business Entities

Entity

Email

MALAYSIA††††††††

Leow Mui Lee

Axcelasia Taxand

lml@axcelasia.com

Derek Lee

Axcelasia Columbus

dl@axcelasia.com

Suresh Muniandy

Axcelasia Softnex

sm@axcelasia.com

Sylvia Anita Rockey

Axcelasia HR Consulting

sar@axcelasia.com

Datin Chai Seow Lin

Axcelasia Corporate Services

Axcelasia Global Business Services

csl@axcelasia.com

SINGAPORE

Ong Su Faye

Axcelasia Singapore

osf@axcelasia.com

VIETNAM & LAOS

Ranjit Singh

Axcelasia Vietnam

Axcelasia Laos

rs@axcelasia.com

 


Disclaimer: This newsletter contains general information only, all of which may be subject to change.
Independent professional advice should be obtained where necessary.

 

Tax Advisory | Business Consultancy | Technology Tools & Advisory | Business Support Services

 

Axcelasia is an integrated professional services group providing tax advisory, business consulting, technology tools and advisory, and business process outsourcing services to public listed companies, private companies, multinational corporations and government-linked entities.

 

We are pleased to provide our latest newsletter. We will continue to provide updates on areas within our expertise from time to time.


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