Prime Minister Tun Dr Mahathir Mohamad will announce an economic stimulus package on 27 February to mitigate the adverse external economic impacts of the COVID-19 outbreak on Malaysia. Finance Minister, Lim Guan Eng said in a media release today that the economic stimulus package is neither a new budget nor part of Budget 2020 measures. Instead, assistance will be given to the affected sectors to allow the economy to emerge as whole as possible and benefit from the expected economic rebound post-COVID-19.

The statement added that cashflow is the principal concern and the affected companies must ensure that they remain viable, operational and capable of reaping the benefits when the economic rebound takes place. “The Government will adopt measures to assist these companies, but emphasis should also be placed on exploring alternative revenues such as shifting towards encouraging domestic tourism, and sourcing from other markets. This also involves keeping the domestic labour market resilient while ensuring our soft and physical infrastructure remain in place amid the short-term weakened demand.”

Lim added that the Ministry of Finance is preparing the economic stimulus programme and is working together with the Ministry of Economic Affairs, Ministry of Transport, the Ministry of Tourism, Arts and Culture, Ministry of Entrepreneur Development and Cooperatives and various agencies. The Government has also engaged in consultations with principal players in the tourism, logistics and finance sectors. The ministries have also held meetings with small and medium enterprises, as well as government-linked funds and companies, he added.

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