Pelan Jana Semula Ekonomi Negara (PENJANA)

Short-term National Economic Recovery Plan

Introduction

Things are starting to look up for our economy as businesses are opening up with more and more economic perks in place. The recently announced short-term economic recovery plan called “Pelan Jana Semula Ekonomi Negara” (PENJANA) – a RM35 billion stimulus package to relieve our economy of the Covid-19 pandemic, part of the RM295 billion economic boost to-date, is certainly spurring the momentum moving forward.

Total PENJANA allocation worth

RM35 billion

For the implementation of 40 Initiatives under 3 Thrusts

Full list available here (PENJANA booklet, page 5)

What are the 3 Thrusts?

Empower the People

Propel Businesses

Stimulate the Economy

Thrust 1

Empower the People

Selected initiatives

Full list available here (PENJANA booklet, page 5)

Thrust 2

Propel Businesses

Selected initiatives

Full list available here (PENJANA booklet, page 5)

Thrust 3

Stimulate the Economy

Selected initiatives

Full list available here (PENJANA booklet, page 5)

What are the key
beneficiary sectors?

Employers & Employees

Tourism

Automotive

Agriculture

Property

Key Examples of
SME Financing

  • PENJANA SME Financing

    RM2 billion

  • PENJANA Tourism Financing

    RM1 billion

  • SME Technology Transformation Fund

    RM500 million

  • Bumiputera Relief Financing

    RM500 million

  • PENJANA (Microfinancing)

    RM400 million

  • Agriculture & Food Sector Support (Microfinancing)

    RM350 million

  • SME Digitalization Matching Grant

    RM100 million

  • Smart Automation Grant

    RM100 million

9 KEY FEATURES

Wage subsidy programme

Allocation: RM5.3 billion

To promote employee retention and reduce layoffs by extending the wage subsidy programme

  • The wage subsidy programme will be extended for another 3 months with a subsidy of RM600 per employee for all eligible employers to support employees’ reduced work week and unpaid leave
  • Effective: 15 June – 30 September 2020

Further details available here (PENJANA booklet, page 8)

Reskilling and upskilling programmes

Allocation: RM2 billion

To equip youth and the unemployed with the necessary skills that meet the job market requirements plus job placement

  • Beneficiaries: Over 200,000 people

Further details available here (PENJANA booklet, page 11)

Real Estate Boost

Allocation: RM1 billion

To stimulate the property market and provide financial relief to homebuyers

  • Home Ownership Campaign (HOC) [throughout 2020]
  • Stamp Duty Exemption [1 June 2020 – 31 May 2021]
  • Real Property Gains Tax (RPGT) Exemption [1 June 2020 – 31 December 2021]
  • Financing above the 70% margin is now allowed for third housing loan onwards

Further details available here (PENJANA booklet, page 44)

MY30 public transport subsidy

Allocation: RM200 million

To reduce the cost of daily public transportation

  • Monthly RM30 commuter pass for unlimited rail and bus rides operated by Prasarana in the Klang Valley
  • Effective: 15 June – 31 December 2020

Further details available here (PENJANA booklet, page 16)

ePENJANA credits in e-wallet

Allocation: RM750 million

To encourage e-wallet usage for safe, contact-free payment experience and to boost consumer spending

  • In the form of RM50 direct credit, discount vouchers and cashbacks through e-wallet service companies.
  • Effective: July – September 2020

Further details available here (PENJANA booklet, page 43)

Free internet quota

Allocation: RM3 billion

To support e-learning and productivity activities (excluding gaming, social media and video streaming)

  • FREE daily 1GB mobile internet data from 8am to 6pm
  • Effective: 1 April – 31 December 2020; 31 August 2020
  • Telcos: Celcom, Maxis, Digi, U Mobile,and TM Unifi Mobile

Further details available here (PENJANA booklet, page 19)

Support for vulnerable groups

Allocation: RM108 million

To provide social assistance to vulnerable groups such as OKUs and single mothers

  • Beneficiaries: Qualified individuals such as OKUs, single mothers and volunteers of home help services on the database of Department of Social Welfare (for new registration, please do so by December 2020)
  • Distribution: RM300 one-off payment underway till Hari Raya Aidiladha (31 July 2020)

Further details available here (PENJANA booklet, page 17)

Automotive industry boost

Allocation: RM897 million

To stimulate the automotive sector and provide financial relief to car buyers

  • 100% sales tax exemption on locally assembled passenger cars including CKD models; 50% on imported cars including CBU models
  • Effective: 15 June – 31 December 2020

Further details available here (PENJANA booklet, page 45)

PENJANA SME financing

Allocation: RM2 billion

To assist SMEs adversely impacted by COVID-19 in order to sustain business operations

  • Banking sector will offer an additional RM2 billion of funding to assist SMEs especially new players, at a concession rate of 3.5% with a maximum loan size of RM500,000 per SME.
  • Effective: Beginning 15 June 2020

Further details available here (PENJANA booklet, page 27)

7 IMPORTANT
TAX INCENTIVES

  • Individual tax relief for IT products
  • Tax reliefs for home buyers, sellers and owners
  • Sales tax exemption on passenger cars
  • Tax relief and deferred tax submission for tourism sector
  • Tax incentives for new businesses
  • Tax incentives for businesses relocating to Malaysia
  • Export duty exemption for the commodity sector