COMMENT | Will the Pemulih package restore recovery?

COMMENT | The RM150 billion announced by Prime Minister Muhyiddin Yassin in the new Pemulih stimulus package is certainly a headline-grabbing figure and close to our estimated cost for the lockdown, which is just shy of RM170 billion.

It is very unclear how the government got to the RM150 billion total based on the list of initiatives announced but what is clear is that just like before, the direct injections are small relative to the total at only around 6.7 percent of the headline figure.

The details show about RM10 billion in direct cash transfers with RM4.6 billion for the Bantuan Khas Covid-19 (BKC) scheme and RM3.8 billion for the extended wage subsidy programme. This will help the poorest but only with small, delayed and sporadic assistance.

The wealthy will have to rely on their own resources in the EPF withdrawals, estimated to be worth RM30 billion under the new i-Citra scheme. At RM5,000 maximum per person, this suggests only six million of the 15 million EPF account holders have enough left to use this scheme or put another way, that nine million don't have enough anymore...