Pelan Jana Semula Ekonomi Negara (PENJANA)

Short-term National Economic Recovery Plan

Visualising PENJANA

CHARTS & ANALYSES

What’s in it for you?

INTERACTIVE QUIZ

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

    Individuals will enjoy a special income tax relief up to RM2,500 on the purchase of smartphones, tablets or laptops, effective from 1 June 2020, to promote remote productivity.

  • Tax reliefs for home buyers, sellers and owners

    Stamp Duty

    Stamp duty exemption on the instrument of transfer (capped at the first RM1 million) and loan agreement (full exemption) for the purchase of residential homes priced between RM300,000 and RM2.5 million subject to at least a 10% discount by participating developers, effective from 1 June 2020 to 31 May 2021.

    RPGT

    Real Property Gains Tax (RPGT) exemption for disposal of residential homes (capped at 3 units of residential homes per individual) from 1 June 2020 to 31 December 2021.

    Rental tax deduction

    Landlords are eligible for a tax deduction equivalent to the 30% reduction in rental (only applicable to premises rented to SME tenants) from April to September 2020.

  • Sales tax exemption on passenger cars

    100% sales tax exemption on locally assembled passenger cars including CKD models; 50% on imported cars including CBU models from 15 June to 31 December 2020.

  • Tax relief and deferred tax submission for tourism sector

    Deferred income tax submission

    Deferred income tax submission (instalment allowed) until 31 December 2020 for tourism industry stakeholders such as tour agencies, hotels and airlines.

    Domestic travelers

    Domestic travelers will be relieved from paying income tax up to RM1,000 for travels between 1 March and 31 December 2021, from expenses such as accommodation and tourist attraction entrance fees, under the purview of the Ministry of Tourism, Arts and Culture (MoTAC).

    Accommodation tax waiver

    100% tourism tax exemption for accommodation from 1 July 2020 to 30 June 2021.

  • Tax incentives for new businesses

    Income tax rebate

    SMEs are entitled to an income tax rebate up to RM20,000 for the first 3 tax assessment years, applicable to new businesses register and start operating by 31 December 2021.

    Stamp duty waiver

    Stamp duty exemptions for SMEs on Mergers and Acquisition documents completed between 1 July 2020 and 30 June 2021.

    Tax deduction on renovation and refurbishment

    Existing businesses are entitled to a special tax deduction on renovation and refurbishment expenditure up to a limit of RM300,000 incurred between 1 March and 31 December 2021.

  • Tax incentives for businesses relocating to Malaysia

    New investors with investment of RM300 – RM500 million

    0% tax rate for 10 years for new investors in the manufacturing sector with a capital investment of RM300 – RM500 million.

    New investors with investment above RM500 million

    0% tax rate for 15 years for new investors in the manufacturing sector with a capital investment above RM500 million.

    Existing Malaysian companies with investment above RM300 million

    100% Investment Tax Allowance for 3 years for existing Malaysian companies relocating from abroad to Malaysia with a capital investment above RM300 million.

  • Export duty exemption for the commodity sector

    100% export duty exemption for crude palm oil, crude palm kernel oil and refined bleached deodorised palm kernel oil, effective from 1 July 2020 to 31 December 2020.

Visualising PENJANA

CHARTS & ANALYSES

What’s in it for you?

INTERACTIVE QUIZ