What does everyone get in the 2020 Economic Stimulus Package by Malaysia Government?

Economic_Stimulus_Package_Malaysia_Government

To help Malaysians with their financial burden in light of the Covid-19 pandemic, the Malaysian government announced its 2020 Economic Stimulus Package. The intention was to help Malaysians from all walks of life in freeing up some cash since the MCO (Movement Control Order) came about.

The first package released before the MCO

In the first package which was announced by former Prime Minister Tun Dr Mahathir Mohamad, there were:

  • Personal income tax relief up to RM1,000 for domestic traveling
  • Digital vouchers of up to RM100 per person for travelers in domestic destinations
  • Reduction from 11% to 7% from EPF (Employees Provident Fund) from April 2020 to December 2020
  • Additional RM100 for Bantuan Sara Hidup recipients
  • One-off payment for public transportation like taxis and tourist guides of RM600
  • Additional allowance for those working in the frontlines like medical, immigration and law enforcement.

Second Phase during MCO

The Prime Minister Tan Sri Muhyiddin Yassin then announced a second package on March 27. This would cover:

  • Working Malaysians below the age of 55 can withdraw RM500 per month starting from April 2020 for 12 months.
  • Added RM200 as special monthly allowance for government medical personnel and law enforcers until the end of the MCO
  • One-off payments for households and single Malaysians under the Bantuan Prihatin Nasional (BPN) package. Further explanation below.
  • RM200 one-off for students in all higher education levels (both public and private)
  • Repayment of PTPTN to be delayed for 6 months.
  • RM500 one-off payment for e-hailing drivers
  • Discounts for electricity bills – 50% for usage below 200 kWh, 25% between 201 and 300 kWh and 15% between 301 kWh and 600 kWh.
  • Free internet plans for everyone from April 1
  • Wage Subsidy for Employers – Companies who suffer more than 50% decrease in income can get this subsidy where employees can get RM600 per month for 3 months
  • Delay of rent for 6 months for those living in PPR (Projek Perumahan Rendah), public homes and government premises
  • Withdrawal of up to RM1,500 from PRS (Private Retirement Scheme) with no penalty
  • RM250 one-off for pensioners

More on Bantuan Prihatin Nasional (BPN)

The Bantuan Prihatin Nasional package is one of the major highlights of the 2020 Economic Stimulus Package as mentioned above. It covers a one-off payment to eligible Malaysians in the following categories.

  • Households with income below RM4,000 per month – Eligible for RM1,600 to be paid in 2 payments (RM1,000 in April and RM600 in May 2020). Recipients who were previously under the BSH (Bantuan Sara Hidup) would enjoy this automatically
  • Households with income between RM4,001 and RM8,000 – Eligible for RM1,000 to be paid in 2 payments (RM500 in April and May 2020 respectively). Eligible recipients are those who paid tax through LHDN.
  • Single individuals above 21 years old earning less than RM2,000 per month – RM800 to be paid in 2payments (RM500 in April and RM300 in May 2020). This is applicable for individuals who are registered under the BSH.
  • Single individuals above 21 years old earning between RM2,001 and RM4,000 per month – RM500 to be paid in 2 payments (RM250 in April and May 2020 respectively. This is applicable to those registered as taxpayers with LHDN.

FAQs on Bantuan Prihatin Nasional (BPN) Aid

A lot of Malaysians have been affected by the Covid-19 pandemic. The government of Malaysia, therefore, announced the Bantuan Prihatin Nasional or BPM aid to provide financial assistance to Malaysians in various segments. The one-off payment (to be paid in 2 parts) raised a lot of questions among Malaysians and if case you are wondering if you are eligible, check them out below.

How do I know if I am eligible?

The fastest way to check is through the website http://bpn.hasil.gov.my. The only problem is that the website might experience high traffic and this can be quite difficult. Otherwise, you will be receiving a notification either through SMS or email. This has started since 1 April. Anyone who has received the SMS or email does not have to check further with LHDN. This is an automatic payment. If you are eligible, you will receive the aid.

Can I apply for the Bantuan Prihatin Nasional?

If you are one of the 4 groups who are eligible but have no record whatsoever, you can apply for the BPN. This can be done online through the LHDN’s website. You do NOT need to apply if you have:

  • paid tax to LHDN and has a record with them
  • received the Bantuan Sara Hidup (BSH) aid previously

How will I get my BPN payment?

If you are registered with LHDN as a taxpayer or as a recipient of the BSH, your records will be in their respective databases. This means that the government has your bank details and you do not need to take any further action. If you are neither one of the above, then you need to register and provide the information through LHDN.

When will I get my Bantuan Prihatin Nasional aid?

It was first announced that the payments will be made in 2 parts. The first to be at the end of April and the second at the end of May. This has since been updated. BPN payments will be made starting 6 April for the B40 category. Meanwhile, those in the M40 category (households and single individuals between RM4,001 and RM8,000) will be receiving their first payment starting 13 April. The second payment will be given out in May.

If I have just made my application, when will I get my BPN aid?

If you are a new application, then you will receive your BPN is one part in May 2020.

I have been blacklisted (bankrupt). Am I eligible for the BPN aid?

If you have been declared bankrupt or have been blacklisted, you can apply for the BPN through the LHDN website.

GKP FAQs

What is GKP?

GKP stands for Geran Khas Prihatin. It is one-off assistance provided by the government of Malaysia to ease the financial burden of SMEs to weather the difficulties faced during the COVID-19 pandemic.

How much is the GKP grant?

RM3,000 as of May 2020.

Am I eligible for the GKP?

You are eligible to receive the GKP if you are:

  • Malaysian citizen.
  • Micro SME company with less than RM300,000 revenue per year.
  • Do not have more than 5 employees (not including the owner).
  • Active business and registered company before 31 December 2019.

How do I apply for the GKP?

  • If you fulfill the requirements, you can make your applications online.
  • No manual (offline) applications are accepted.

Which agencies must I be registered with?

Your company should be registered with:

  • Inland Revenue Board (LHDN)
  • Commission of Companies Malaysia (SSM)
  • Pihak Berkuasa Tempatan (PBT) or Local Authorities

When can I apply for the GKP?

The applications for the GKP is open from 1 May 2020 to 15 May 2020. No late applications will be entertained.

When will I know if my application for the GKP is approved or rejected?

From the first week of June, you can check for your status of applications online.

When will the GKP payment be made?

If your application is successful, you will expect to receive your one-off payment in June 2020.

How will I receive my GKP payment?

To receive your payment, you will need to have a Malaysian bank account that must be provided. You are to ensure that this bank account is valid and active.

Will the GKP be paid in a few parts?

No. It is a one-off payment where RM3,000 will be paid in full and one-time only.

Where can I apply for the GKP?

You can submit your applications online through the portal https://gkp.hasil.gov.my

My company is registered with a government agency (SSM or the local authorities). However, it is not registered with LHDN. Am I still eligible to apply for the GKP?

Yes, you still can apply for the GKP. Please ensure that you have provided your company’s registration number during the online application process.

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