MFPC welcomes the broad-based RM20 Billion economic stimulus plan to mitigate the economic pain of the rakyat. The very timely stimulus plan will help businesses and households manage aspects of personal finance and boost the sluggish economy. Key points that we wish to highlight include:-
Moratorium on Loans – We note that most financial institutions in the County have announced a moratorium period on affected businesses of individuals affected by the Covid-19 virus. We wish to remind Malaysians the importance of preparing for an individual emergency fund to avoid financial distress by having at least a 3-month buffer to tide over in times of trouble and difficulties. It is in our view that better managing temporary financial constraints should be part of an individuals and businesses longer-term financial plan.
Assistance for Affected Individuals – Malaysians will be pleased with the e-voucher for domestic travel made available through this stimulus. It would help the affected sectors tremendously, we are encouraged that it would promote local tourism and such rakyat-centric measures of personal income tax relief related to domestic tourism, should be utilised by Malaysians.
One must also retain all receipts, although the filing of taxes is done electronically through e-filing for 7 years in line with the policies set by Inland Revenue Board. As for the one-off financial assistance of RM600 and the addition Bantuan Sara Hidup (BSH), we have held to the view that it would always be better if could teach individuals to save rather than giving them cash-handouts. Poor knowledge of the management of personal finance must be corrected for the longer term for Malaysia’s economic growth. The circulation of money will be a booster for the economy and as such the RM10 Billion anticipated worth of private consumption is seen as a good measure.
Human Capital Development – The enlarged focus to further invest in raising the productivity of human capital, we call upon affected individuals and businesses to encourage adult learning especially in the management of cash flow and basic budgeting. This would help all sectors be better prepared for such eventualities in the future.
The Council has numerous free financial literacy programmes named, My Money & Me for members of the public. In line with the National Strategy for Financial Literacy through the Financial Education Network (FEN), the Council is heightening its public literacy series. The Council invites interested entities affected by the current scenario to engage with us as we attempt to make it possible for affected employees to be better equipped with financial planning knowledge.
President of MFPC, Vincent Kwo Shih Kang said, “The economic reliefs announced would help the viability of the economy in the long run”. All Malaysians must band together during this trying times so that the country’s economic path will be safeguarded as we hope for the virus to end soon. MFPC looks forward for Malaysia’s GDP for the year 2020 to be closer to the 4.0% mark and for heightening stability of our local bourse.