This alert follows our earlier client alert on the Restriction of Movement Order - Guidelines as at 24 March 2020. In view of the unprecedented outbreak of COVID-19 and its impact on the Malaysian economy, on 27 March 2020, the Prime Minister of Malaysia announced the details of the PRIHATIN Rakyat Economic Stimulus Package (PRIHATIN Package) with a focus on preserving the welfare of Malaysian citizens, supporting businesses and strengthening the economy. The PRIHATIN Package is an extension of the:
(a) Economic Stimulus Package (February ESP) announced by the then Prime Minister of Malaysia, Tun Dr Mahathir, on 27 February 2020; and
(b) additional measures for the Economic Stimulus Package announced by the Prime Minister of Malaysia on 16 March 2020 and 23 March 2020 (Additional Measures).
In aggregate, the PRIHATIN Package announced by the Government of Malaysia (Government) is valued at RM250 billion (compared to the Economic Stimulus Package for the global financial crisis of 2007 - 2008 valued at RM67 billion). This represents approximately 18% of Malaysia's gross domestic product in 20192. The Ministry of Finance will implement the PRIHATIN Package through the Unit for the Implementation and Coordination of National Agencies on the Economic Stimulus Package (Laksana).