Six-month moratorium for all, RM250 – here’s what the M40 needs to know

Those servicing loans, regardless of social status, will now be offered a six-month moratorium as the government unveiled its latest economic stimulus package worth RM150 billion.

Prime Minister Tan Sri Muhyiddin Yassin, in his special address this evening, said the People’s Protection and Economic Recovery Package (Pemulih) would ensure that no one is left behind as the nation undergoes a lockdown.

While most of the previous stimulus packages targeted the hardcore poor, Muhyiddin, this time around, conceded that even the M40 group were suffering.

As such, M40 households (median household income of between RM4,850 and RM10,959), would receive RM250 while M40 singles would get RM100 in August.

Muhyiddin also said that those servicing loans – regardless of B40, M40, T20 and even micro-entrepreneurs – would be given a six-month moratorium.

“There will not be any conditions set, like a drop in salary or loss of job. One just has to apply to receive an automatic approval,” Muhyiddin said.

This was the second time such a moratorium was offered since the pandemic hit Malaysia last year.

“It is hoped that this will help the borrowers and SMEs in managing their cash flow during this challenging period,” said Muhyiddin.

“However, I would like to remind the people not to add on to their commitments.”

The prime minister also said discounts of between 5 and 40 per cent on electricity bills (up to a maximum of 900 kilowatt-hours (kWh) a month) would be offered to users. Those who use below 200kWh will enjoy a 40 per cent discount, while there would be a 15 per cent discount for usage of between 201kWh and 300kWh.

Meanwhile, telecommunications companies have agreed to extend the 1GB of daily free data until Dec 31. This will benefit some 44 million registered users.

Other highlights include:

  • MPs to receive RM300,000 each for the food basket programme, to be distributed to their constituents in need.
  • The hardcore poor will receive RM500 in August, RM500 in November, and RM300 in December. Singles from this category will receive RM200 in August and RM300 in November. B40 households will receive RM500 in August and RM300 in December while singles from this category will receive RM200 in August.
  • Additional payments of RM500 under the Prihatin Special Grant (GKP) 4.0 to eligible recipients in September, and another RM500 in November this year.
  • The Wage Subsidy Scheme will continue, this time with an allocation of RM3.8 billion. The government will support up to 500 workers per employer with an assistance of RM600 per worker for four months. There will not be any salary limit conditions, and employers can apply even if their employees earn more than RM4,000 a month.