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BANK PEMBANGUNAN’S RESPONSE TO RM150 BILLION NATIONAL PEOPLE’S WELL-BEING AND ECONOMIC RECOVERY (“PEMULIH”) PACKAGE ANNOUNCEMENT

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BPMB lauds the Government’s announcement of the National People’s Well-being and Economic Recovery (“PEMULIH”) package, a comprehensive form of assistance to all groups affected by the COVID-19 pandemic. The PEMULIH package is much needed and well-timed as it reinforces the Government’s commitment to aid the Rakyat as the country remains under Phase One of the National Recovery Plan and will go through the subsequent phases until year end in efforts to curb the spread of COVID-19.

 

PEMULIH, totalling at RM150 billion with direct fiscal injection of RM10 billion will be an extension to the relief measures for the Rakyat and stimulus for the businesses. The three main thrusts, (i) Continuing the Prihatin Rakyat Agenda, (ii)Supporting Businesses and (iii) Increasing Vaccination Rate reflect the commitment by the Government to strike a balance between preventing a sharper economic slowdown and improving public health conditions.

 

Among the key relief measures for the Rakyat are the continuity of one-off cash assistances to low income groups, particularly the hardcore poor and the M40. At the same time, the Government has also reaffirmed its commitment to ensure that the retail fuel prices are to remain at the current level while the floor price for cooking oil will be capped by a price control mechanism tied to the CPO prices. On top of that, electricity bills will be given discounts between 5 to 40%. Together with the introduction of i-Citra and a 6-month blanket loan moratorium, these measures will support recovery in consumer spending in the second half of 2021.

 

We also applaud the latest relief packages for businesses. Apart from the blanket moratorium, the Government has unveiled the Prihatin Special Grant 4.0 which will benefit 1 million micro SMEs with a RM500 cash transfer in September and November 2021. The Government will also extend the Wage Subsidy Programme to help employers which will benefit 2.5 million workers including those with a salary above RM4,000 per month. At the same time, the Government pledges to increase local employment by lowering the minimum salary requirement to RM1,200 per month.

 

The introduction of the Program Pemerkasaan Pendigitalan Usahawan Kecil (“PUPUK”) to support digitalisation and cashless transactions among the SMEs and MSMEs is also well-timed. This will help the affected enterprises cope with losses caused by the lockdown as well as move forward to adopt technology and rebound stronger.

 

We believe the measures introduced under PEMULIH can be executed quickly to provide relief to the economy. Faster re-opening of non-essential economic sectors supported by the Government’s plan to increase budget allocation for vaccine purchases with more vaccination centres and various modes of inoculation programs will accelerate domestic economic activities further.

 

As a development financial institution, we understand that the impact of COVID-19 has been deeply felt by our communities within and beyond the Bank. Significant hardship has struck many, resulting in unemployment or reduction in business for Small and Medium Enterprises (“SMEs”). While we are hopeful for an economic rebound to occur in the near future, as a responsible corporate citizen, BPMB is cognisant of the need for all industry players to play a more active role in the meantime to help our community weather the storm. Thus, we hope that together with the government, we can all work hand-in-hand to revitalise Malaysia’s economic health and return to normalcy.

 

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About Bank Pembangunan Malaysia
Bank Pembangunan Malaysia Berhad (“BPMB”) was incorporated on 28 November 1973 as a development financial institution to assist small and medium-sized entrepreneurs. BPMB’s role includes the provision of various financing facilities, training and advisory services, particularly to Bumiputera entrepreneurs. Today, BPMB provides medium to long-term financing to the strategic sectors of the economy.

 

Owned by Minister of Finance (Incorporated), BPMB has been accorded the highest rating of ‘AAA’ by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002.

 

With a Group Total Assets value of RM25 billion (as at 31 December 2019), the BPMB Group is well-positioned to meet the financing and business development needs of Malaysian businesses.

 

For more information, please contact:

Anita Ramly
Head, Corporate Communications Bank Pembangunan Malaysia Berhad
Tel: (019) 332 4809
Email: anita.ramly@bpmb.com.my

Izzat Ratna
Senior Executive, Corporate Communications Bank Pembangunan Malaysia Berhad
HP: (012) 642 1889
Email: izzat@bpmb.com.my



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