Malaysia’s $36 billion Covid aid boost as lockdown is extended

The South-east nation’s Prime Minister promised the cash help as he warned the country that restrictions won’t be lifted until the numbers of new daily cases falls below 4,000

Malaysia is to pump more than $36 billion into its Covid-hit economy with Prime Minister Muhyiddin Yassin stating a national lockdown will now not be lifted until daily reported cases fall below 4,000.

The PM announced the 150 billion ringgit aid package on Monday, and it will include cash aid and wage subsidies.

Lockdown measures originally set to end on Monday will now not be eased until daily reported cases fall below the Prime Minister’s mark, following a reported 5,218 new infections, bringing total cases to 739,266, including 5,001 deaths.

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The latest aid package includes a fiscal injection of 10 billion ringgit from the government, Muhyiddin said in a televised address on Monday.

“What I can promise today is that, even within a narrow fiscal space… I will not compromise in the effort to protect the people’s welfare and to fight Covid-19,” he said.

The government will allocate an additional 3.8 billion ringgit for a wage subsidy programme, and roll out more cash aid, loan moratoriums, tax breaks, grants, subsidies and other measures, Muhyiddin said.

The South-east Asian nation will also spend an additional 1 billion ringgit to ramp up its inoculation programme, including 400 million ringgit to buy more vaccines, he added.

VACCINATIONS EXTENDED

The funds would ensure many more of the country’s 32 million population would be covered and would extend vaccinations to youths aged 12 to 18.

In addition to lower infection numbers, the government has said lockdown measures would only be eased when the country reached specific targets in vaccination rates and healthcare capacity.

As of Saturday, around 15.5% of the population had received at least one dose of a Covid-19 vaccine, while 6% have received two doses, Muhyiddin said.

Reporting by Reuters

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.