TAKE HOME EXAM – KOC3466

CORPORATE SPEECH

Bismillahirrahmanirrahim,

Assalamualaikum Warahmatullah and Salam Sejahtera,

My beloved fellow Malaysians.

How are all of you today? I hope you are all in good health.

On 27 March 2020, I have announced an Economic Stimulus Package Prihatin

Rakyat (PRIHATIN) worth RM250 billion. I know several days ago, Mak Cik Kiah,
Pak Mail, Mr. Lee, Mr. Muthu, Mr. Johnny, and many others are checking their
eligibility of Bantuan Prihatin Nasional on the LHDN website.

For those who are eligible, payments are made starting today.

For those who are eligible to receive assistance but their names are not in LHDN
records, you can apply. It is very simple. Just use your own handphone to apply
online on LHDN website.

Please fill in the required information honestly, press the send button and wait for
payment to be credited into your account.

For the elderly who are less familiar using smart phones, ask assistance from your
child or grand child to fill up the needed information.

As soon as the PRIHATIN was announced, I received a lot of feedback from the
public. Many agreed and supported the economic stimulus package announced by
the Government.

However, I have also received feedback from associations and chambers of

commerce representing the Small and Medium Enterprises (SMEs) who have
requested the Government to review the assistance they have received in the
economic stimulus package.

I have received letters, memorandums and views from many parties. These
include SME Association of Malaysia, Dewan Perniagaan Melayu Malaysia, Majlis
Tindakan Ekonomi Melayu, the Associated Chinese Chambers of Commerce and
Industry of Malaysia, USAHANITA and many more.

Most of them provided their views that their businesses are affected and they need
additional assistance from the Government.

I realise that SMEs are a key driver of the country's economy.

The SME sector contributes to more than two thirds of total employment in our
country and almost 40 percent to the economy.

Therefore, it is important for the sector to remain resilient in the face of economic
pressures that are affecting us all.

Among the challenges faced are business cash flow problems following the
Movement Control Order (MCO). In addition, SME enterprises are facing issues of
bureaucracies and administration which have hampered quick access of
assistance provided by the Government in the PRIHATIN package.

Therefore, I have instructed the Ministry of Finance to engage with SME

enterprises, the purpose of which was to find solutions to the problems that the
latter are facing. On the Government side, we will assist as best as we can.

As a result of all these engagements, I am happy to announce additional

measures for PRIHATIN or PRIHATIN PLUS. The additional package, valued at
RM10 billion, hopes to ease the financial burden of SMEs and subsequently
assure two thirds of the workforce will remain employed.

The additional measures are:

• First, the wage subsidy programme announced on 27 March will be expanded

from RM5.9 billion to RM13.8 billion, an increase of RM7.9 billion. Under this
additional initiative, all companies with local employees earning a monthly salary
each of RM4,000 and below will receive wage subsidies as follows:

- For companies with a workforce of more than 200 people, we will provide a wage
subsidy of RM600 per month for every retained worker. However, the maximum
number of workers that a company is eligible to claim for will be increased from
100 to 200 employees.

- For companies with employees between 75 to 200 people, they will receive a
wage subsidy of RM800 per month for every employee.

- Finally, for companies with employees of less than 75 people, we will provide a
wage subsidy of RM1,200 per month per employee. Through this improvement,
companies will receive more benefits and assistance.

- This assistance is for a 3-month period and is specifically for employers

registered with the Companies Commission of Malaysia (SSM) or local authorities
before 1 January 2020 and are registered with the Social Security Organisation
(SOCSO).

It is estimated that 4.8 million employees will benefit from this initiative.

- For employers opting to accept this assistance, they are required to retain their
employees at least for a period of 6 months, that is 3 months during the period
receiving the subsidies and 3 months thereafter.
• Secondly, a Special PRIHATIN Grant amounting to RM2.1 billion will be
established for eligible micro enterprises. A grant of RM3,000 will be provided to
each company, benefitting almost 700,000 micro enterprises. The micro SMEs will
have to register with LHDN to enjoy this assistance. The local authorities and SSM
will provide the list of eligible micro enterprises to Government.

In addition, the Government would like to urge the registered money lenders who
offer credit facilities under the Money Lenders Act 1951, to provide moratoriums to
SMEs for loan repayments for 6 months beginning April 2020, similar to those
provided by banks.

I hope that these money lending organisations are equally sympathetic to the
hardship faced by their clients and together helping to ease their financial burden.

Furthermore, to ease the financial burden of SMEs, the Government has also
undertaken a number of initiatives to facilitate SMEs in deriving the full benefits
from all the assistances that have been announced. Among the improvements that
will be introduced are as follows:

• First: Abolish the 2% interest rate to 0% under the Micro Credit Scheme
amounting to RM500 million under Bank Simpanan Nasional (BSN). The soft loan
scheme for micro enterprises is also extended to TEKUN Nasional with a
maximum loan limit of RM10,000 at 0% for each enterprise. A total of RM200
million fund will be allocated for this purpose. Applicants are given an option to
choose either scheme to ensure more beneficiaries of this facility.

• Second: Waive or provide discounts for rentals to SMEs in the retail sector which
are operating on premises owned by Government-Linked Companies (GLCs). I
would like to thank GLCs such as MARA, PETRONAS, PNB, PLUS and UDA as
well as several State Governments who have agreed to give either discounts or
rental waivers on their premises to SME tenants. On the principle of burden
sharing, I would also like to urge owners of private premises to provide similar
assistance to their tenants to reduce their rental rates. Owners of buildings or
business spaces that provide rental reduction or waiver to tenants that consist of
SMEs are given a further tax deduction which is equivalent to the amount of rental
reduction for the months of April until June 2020. This further tax deduction is
subject to the condition that the rental reduction is at least 30% of the original
rental rate for that particular period.

• Third: To reduce the levy on foreign workers by 25% to all companies with work
permits that will expire in the period of 1 April to 31 December 2020. This reduction
is not applicable to the domestic help sector.

I understand the difficulties faced by employers in retaining their employees in

these trying times. In this regard, the Government encourages employers to
actively engage with their employees on employment terms including the options
of pay cuts and unpaid leave during the MCO period.

Employers and employees may refer to the Department of Labour to seek advice
on solutions for issues raised. Any negotiations should be subjected to
employment laws currently being enforced. What is important is that the rights and
welfare of both sides are taken care of.

I also understand the difficulties faced by companies in submitting statutory

documents as required by SSM during the MCO period. Thus, the Government
has agreed to grant an automatic 30-day moratorium from the date of MCO ends
for companies to lodge the statutory documents to SSM.

In addition, a 3-month extension will also be granted for the lodgement of financial
statements for companies with financial year ended 30 September to 31
December 2019. Companies are required to apply to SSM for this extension with
no fees imposed.

My dear brothers and sisters,

For SMEs to better understand the assistance provided, let me share some
examples:

The first example is Lee Beauty Saloon, a micro enterprise operating a hair salon.
This enterprise has 2 local employees who earn less than RM4,000 per month.
The owner, Madam Lee, wishes to re-invigorate her business after the MCO
period ends. With all the assistance announced by the Government, Madam Lee
can enjoy benefits through a wage subsidy of RM7,200 for 3 months and a micro
grant of RM3,000. The overall benefits that can be received by Madam Lee is
RM10,200.

The second example is Mi Kolok Haji Salleh restaurant in Kuching, Sarawak. Say
the restaurant employs 5 local workers earning RM4,000 and below, and 2 foreign
workers. To ensure the company is able to maintain its cash flow requirements
during the MCO period, the restaurant owner can apply for a micro credit loan from
BSN amounting to RM50,000 and wage subsidies of RM18,000 for 5 workers. In
addition, the company can also save from the deferment of EPF employer
contribution and exemption of HRDF contribution amounting to RM8,400, tax
deferment of RM5,200, discount on levy for foreign employees of RM2,300 and
discount on electricity bill of RM300. The overall benefits that can be received,
excluding the micro credit loan, is RM34,200 for 3 months.

The last example is Surjit Kaur Sdn. Bhd. It is a medium-sized company involved
in furniture manufacturing with 15 workers, of whom 5 are locals earning less than
RM4,000 a month and 10 are foreign. To ensure the company is able to maintain
its cash flow requirements during the MCO period, the company can apply for a
loan up to RM500,000 from the Special Relief Facility (SRF) and enjoy the wage
subsidy programme of RM18,000. In addition, the company can also save from the
deferment of EPF employer contribution1 and exemption of HRDF contribution
amounting to RM8,400, discount on levy for foreign employees of RM4,600, tax
deferment of RM32,700 and discount on electricity bill of RM100. The overall
benefits that can be received, excluding SRF, is RM63,800.

My beloved brothers and sisters,

To ensure that all PRIHATIN and PRIHATIN PLUS initiatives are implemented
promptly and smoothly, the unit LAKSANA has been established under the
Ministry of Finance. This unit will monitor and report the progress of
implementation of all initiatives to the Minister of Finance and me.

The IMSME.COM.MY, which is a portal managed by Credit Guarantee Corporation

(CGC) in collaboration with BNM, has been established to support the execution of
the PRIHATIN initiatives.

This portal is ready to accept applications from SMEs on all the initiatives
announced.

So, other than applying for loans directly from the banking institution, all SMEs
have an option to apply for loans through the IMSME portal. This portal provides
myKNP services, that is

financing advisory services for SMEs.

Among small and micro enterprises, the Government is also concerned about
start-ups, where investors have retreated during this period. Startups are the
enabling and push factors for the adoption of technology and advancements of
human potential to prepare the nation towards IR 4.0. Realising the importance of
startups, the Government is considering various initiatives to boost this sector
during this challenging time.

I hope this PRIHATIN PLUS will protect your jobs besides ensuring business
resilience. At the same time, the Government will continue a prudent financial
practice and good fiscal discipline to ensure the nation’s financial position remains
strong and manageable.

InsyaAllah, when the Parliament next convenes, the Government will table an
Additional Supply Bill for all the economic stimulus packages that have been
announced. I guarantee that the Government will continue to be transparent in its
spending and all actions taken are based on the provisions of the law and the
Federal Constitution.

Brothers and sisters,

I know all of you have been confined at home for 3 weeks, maybe some of you are
feeling the hardship and burdensome of this trial from God. These past 3 weeks,
we could not do all the things that we normally do. We had to leave our hobbies,
our jobs, we missed our friends and families. In short, our life now is different and
sometimes more burdensome.

I have seen in social media that some husbands are now beginning to wear their
wives’ caftans. Some are cycling in their houses. Some have turned my speeches
into songs. I hope this is not unusual behaviour or out of character. It is part of
your creativity to relieve your boredom being too much at home.

I think what is important is that you have your own way in dealing with difficulties
and trials.

And I believe that God will not test or burden us with something that we cannot
withstand.

As Allah has decreed in Surah Al-Baqarah verse 286:

Which means: “Allah will not burden any soul beyond what it can handle. It gets
every good that it earns, and it suffers every ills that it earns”

I’m confident that the trial brought by the Covid-19 pandemic is not something that
we cannot handle by all of us. Do continue to be steadfast, strong and
enthusiastic. Please believe that we can overcome this trial together.

To my fellow Malaysians, let us remember that we are inherently resilient,

individually capable and collectively strong to face these uncertain times.

Let us strengthen our resolve and stay committed to our fight against Covid-19. Let
us stay the course and follow all orders made under the MCO. It is difficult, but
certainly not impossible.

This is the sacrifice we are called to make in order to win this war against the
deadly virus.

Winning this war starts in our homes and with our families. We can stop the virus
from spreading by staying at home and maintaining physical distance.

Stay strong, stay healthy, insyaAllah we will succeed.

Remember, after the rain, comes the sun. And better days will be here again.

Finally, I wish to thank all the frontliners who continue to uphold the trust given with
full dedication. Thank you to all doctors, nurses, police personnel, military
personnel, immigration, RELA, firefighters, staff of the Welfare Department, NGO
volunteers and all who are involved at the frontline.

Also, my appreciation to all of you who have obeyed the Movement Control Order.
Please continue to be patient, keep calm and remain steadfast. God willing, we will
rise again.

Wabillahi al-taufik walhidayah wassalamu’alaikum wa rahmatullahi wa

barakatuh.

Source : https://www.nst.com.my/news/nation/2020/04/581935/full-text-pms-speech-
additional-prihatin-sme-economic-stimulus-package
THE ANALYSIS

The matter emphasized by the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin is
about PRIHATIN assistance. An initial financial stimulus amounting to RM 20.0 billion was
released in February 2020, before the highlighted PRIHATIN Package, amounting to RM 250
billion, was announced. The PRIHATIN Package has provided governmental support to
society, covering people of various backgrounds from students and families to business
owners.

It seems that everyone already knows about the RM250 billion People's Concerned Economic
Stimulus Package (PRIHATIN) announced by the Prime Minister at the end of March.

The financial assistance provided by this government is to help Malaysians who are facing
financial problems during the Movement Control Order (PKP) period, as well as those who
are affected by the COVID-19 situation that is currently plaguing the world.

To control the rate of infection cases from continuing to increase, citizens are encouraged to
sit at home, and reduce interactions with others outside.

This results in many companies from various industries not being able to do business, and
suffering losses.

In addition, there are sectors that need to be closed temporarily, resulting in job losses and
income. There are even businesses that have to go bankrupt.

To save the country's economy, the government has given flexibility to withdraw EPF
Account 2 money, postpone the repayment of bank loans through a moratorium for 6 months,
and also introduced the National Caring Assistance (BPN).

BPN is one of the initiatives to alleviate the financial burden of the people and consists of 2
phases - BPN 1.0 which was announced in March 2020, and BPN 2.0 which was announced
in September 2020.

The Government is sensitive to the difficulties experienced by the People during this
COVID-19 pandemic. In this regard, Bantuan Prihatin Nasional (BPN) 2.0 is part of the
Additional Initiative Framework, People's Concerned Economic Stimulus Package (KITA
PRIHATIN) worth RM10 billion which was announced by the YAB Prime Minister on 23
September 2020.
The BPN 2.0 initiative, a total of RM7.0 billion, will be channeled through two phases of
payment, namely in October 2020 and January 2021. For those who have never received BPN
before, new applications can be made from 15 October 2020.

The new BPN 2.0 application is open from October 15 to November 15, 2020, to help those
groups that have never received BPN before, including newly vulnerable groups who are
eligible to apply due to changes in their income status due to the impact of COVID-19
transmission.

The new BPN 2.0 application period is open from 15 October 2020 until 15 November 2020.
To ensure that BPN reaches those who are truly eligible, the review process for new
applications will be made immediately. For those approved, payment will be made in one
lump sum in January 2021.

Apart from that, the PRIHATIN package also includes the improvements that will be
introduced to facilitate SMEs in deriving the full benefits are as follows:

• First: Abolish the 2% interest rate to 0% under the Micro Credit Scheme amounting to
RM500 million under Bank Simpanan Nasional (BSN). The soft loan scheme for micro
enterprises is also extended to TEKUN Nasional with a maximum loan limit of RM10,000 at
0% for each enterprise. A total of RM200 million fund will be allocated for this purpose.
Applicants are given an option to choose either scheme to ensure more beneficiaries of this
facility.

• Second: Waive or provide discounts for rentals to SMEs in the retail sector which are
operating on premises owned by Government-Linked Companies (GLCs). I would like to
thank GLCs such as MARA, PETRONAS, PNB, PLUS and UDA as well as several State
Governments who have agreed to give either discounts or rental waivers on their premises to
SME tenants. On the principle of burden sharing, I would also like to urge owners of private
premises to provide similar assistance to their tenants to reduce their rental rates. Owners of
buildings or business spaces that provide rental reduction or waiver to tenants that consist of
SMEs are given a further tax deduction which is equivalent to the amount of rental reduction
for the months of April until June 2020. This further tax deduction is subject to the condition
that the rental reduction is at least 30% of the original rental rate for that particular period.
• Third: To reduce the levy on foreign workers by 25% to all companies with work permits
that will expire in the period of 1 April to 31 December 2020. This reduction is not applicable
to the domestic help sector.

Apart from that, Prime Minister Tan Sri Muhyiddin Yassin also emphasized on the way we
all work together to address the issue of the Covid-19 pandemic. Malaysian citizens did not
initially realize how deadly the virus is. On January 25, 2020, Malaysia showed no intention
of banning travelers from China, although China had already quarantined the entire
population of 11 million in Wuhan due to the deadly virus. Malaysians were also not well
prepared to fight the pandemic, mainly because of the political crisis that was happening at
the same time and also because they were assured that the virus would not spread easily in
Malaysia. However, with the number of positive COVID-19 cases in Malaysia increasing in
less than a week from 99 on March 8 to 200, with the first two deaths reported in mid-March,
Malaysians began to panic (Majid, 2020). Consequently, the government took many steps to
alleviate the mass panic and protect the health of Malaysian citizens.

The MoH played a crucial role in ensuring maximum readiness to contain the spread of the
virus. Among the earliest efforts taken by the MoH to prevent disease transmission was the
enforcement of health screening at all points of entry. According to the Director-General of
the MoH Datuk Dr. Noor Hisham Abdullah, one of the strategies was the placement of
thermal scanners. This was done to further enhance the detection of fever amongst tourists
and / or locals returning from abroad. Malaysians who returned from Wuhan were screened,
identified, and isolated in special quarantine areas for COVID-19. This measure also involved
airline crews as well as the staff of the MoH

Preparedness and Response Centre (CRPC), Kementerian Kesihatan Malaysia (KKM), and
CRPC KKM Telegram. The Ministry has provided awareness programmes on basic
protective and hygiene measures to minimize transmission of SARS-CoV-2 in simple
diagram form to reach the public easily. This includes hand-washing techniques and the use
of hand sanitizers and face masks. In addition, various infographics associated with COVID-
19 have frequently been prepared and uploaded onto the website. The MoH has also
conducted daily press briefings, conference recordings, and has published relevant news on
COVID-19 to increase public engagement and ensure public awareness and access to
accurate information.

Actions taken by the media, NGOs, and public institutions

Malaysia was one of the first countries to come out with various quick responses to protect its
citizens from COVID-19. The main aim was to minimize economic and social impacts, limit
its spread, and provide care for its citizens. Many contributions were made by the citizens to
overcome this pandemic, and this section discusses the responses from other organizations
and communities.

COVID-19 has caused fear, anxiety, and confusion. The media, celebrities, and other
influencers have appealed to the public to stay at home and avoid mass gatherings. The media
has started to use the hashtag #stayhome. This hashtag has been used widely in the media,
and it is hoped that important messages to stop the spread of COVID-19 can reach all levels
of society.

The MCO has affected Malaysia's economy. Most companies have their employees working
from home, and some workers have had to stop working. NGOs have been actively helping
those who are affected by this pandemic. They have been providing food, shelter for the
homeless, and have even given out money to help those in need. Some NGOs have helped by
providing protective masks, disinfection chambers and helping to educate citizens on
COVID-19. All frontliners are required to wear PPE. However, due to the rapid increase in
COVID-19 cases, there have been shortages in PPE equipment. This shortage could have
endangered the health of frontliners. Therefore, several NGOs and public figures have helped
to sew PPE for medical frontliners.

Educational institutions, schools, and higher education institutions have had to close due to
COVID-19. However, this has not stopped researchers from various universities from helping
citizens in fighting COVID-19.

Finally, he emphasized on the role of Malaysians themselves in helping to address this issue.
Malaysians have even stated a preference to stay at home for future protection from germs
and viruses, due to fear and anxiety when going to the supermarket, on public transport, or
traveling. They have also practiced wearing protective masks when out in public, frequent
hand-washing, and avoiding mass gatherings. As stated earlier, this virus can spread easily by
direct transmission from symptomatic individuals to someone who is in close contact via
respiratory droplets, by direct contact with infected individuals, or through contact with
contaminated objects and surfaces.