Opposition urges govt to double Covid-19 stimulus package

Opposition urges govt to double Covid-19 stimulus package

PH MPs say the proposed RM45 billion allocation under the stimulus package is inadequate.

The proposed Covid-19 bill aims to increase expenditure of up to RM45 billion to cushion the economic impact of the pandemic
KUALA LUMPUR:
Opposition MPs have asked the government to double up funds under the Covid-19 stimulus package to reduce the impact of the Covid-19 pandemic and movement restrictions on the economy.

Mohamad Sabu (PH-Kota Raja) said KLIA looked like a “ghost town” as people were not travelling.

He also said a number of e-hailing drivers were professionals who had lost their jobs. Five-star hotels and high-end restaurants had also closed down, he added.

“Some say it’s okay. The owner has a lot of money. But what about the staff? They are left jobless,” he said when debating on the Temporary Measures for Reducing The Impact of Coronavirus Disease 2019 (Covid-19) Bill 2020.

He said more people were opening food stalls to make ends meet after failing to find a job. Due to these situations and the hardship faced, more funds were needed to help people on the ground.

Charles Santiago interjected stating that there was a family of four in Klang who had been living in their car after failing to pay the house rent.

He noted that the Small and Medium Enterprises Association had said that 300,000 to 400,000 SMEs might close down if they failed to cope with operating costs.

Earlier, Lim Guan Eng (PH-Bagan) asked the government to double the funds under the bill to RM90 billion.

“We need to help the rakyat, and not only cronies and big companies. We need to make sure there are open tenders for all we do,” he told the Dewan Rakyat.

He said the tourism industry was struggling as consumers were still keeping away from restaurants and hotels.

Lim also asked Putrajaya to extend the moratorium on home and vehicle loans for another six months to March 31, next year.

He said this was necessary as the Statistics Department had said in April this year that 84% of the workforce in the private sector was facing pay cuts.

But Tajuddin Abdul Rahman (BN-Pasir Salak) said the government could add more in the future if the present RM45 billion was not enough.

“What is the problem?” he said, adding that Malaysia was handling the Covid-19 crisis a lot better than many countries.

The bill seeks to increase expenditure of up to RM45 billion in programmes to cushion the economic impact of the pandemic.

It also provides for a temporary increase in the national debt ratio from 55% to 60% of the gross domestic product. Under the current law, the government cannot raise loans to amounts beyond 55% of the GDP.

If the bill is passed, the debt limit will return to 55% on Jan 1, 2023.

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