KUALA LUMPUR: The RM3 billion to extend the free 1GB Internet data offer until Dec 31 as part of the government's short-term Economic Recovery Plan (Penjana) will benefit the people without any extra cost to telco providers.
Rakuten Trade Sdn Bhd vice-president of research Vincent Lau said the move would help Malaysians access education, news, and video conferencing services.
"I do not think telcos' profitability will be affected by these measures.
"It is a good move as people are spending their time more now going online during the Movement Control Order (MCO)," he said.
When it was first announced in the Prihatin Rakyat Economic Stimulus Package, the government allocated RM600 million for the initiative.
The free 1GB data is currently offered by Maxis, Celcom, Digi, Telekom Malaysia (TM), U Mobile, Tune Talk and Yoodoo.
Prior to this, TM had announced an extension of free data offer for unifi mobile customers until Aug 31.
An additional RM400 million was also announced to be invested to improve network coverage and capabilities to provide quality telecommunications networks.
Malaysia Retailers Chain Association (MRCA) lauded the recovery plan that emphasised stronger digitalisation initiatives.
Its president, Datuk Seri Garry Chua, said the move proved that the government was encouraging digitalisation, which was the way forward.
"Looking at the current situation, many have no choice but to move away from the traditional way of doing business to stay relevant and thrive.
"They must have both online and offline for the long term, to ensure the sustainability of their business," he said.
Under Penjana, Malaysians will receive RM50 worth of e-wallet credit to encourage safe and contact-free payment. The initiative worth RM750 million would benefit about 15 million Malaysians, starting next month.
Chua said the additional RM50 in value, which would be provided through vouchers5, cashbacks, and discounts by e-wallet platforms, would encourage greater online spending.
He said although many retailers have resumed their businesses after the implementation of the Conditional Movement Control Order (CMCO), which commenced on May 4, most of them only managed to achieve between 20 and 30 per cent of sales.
"The problem is that people are not spending their money, therefore there is not much business."
On the wage subsidy that will continue for another three months, Chua said the move would promote employee retention and reduce layoffs.
The wage subsidy, set at RM600 per month per employee, was first introduced in the stimulus package in March and April.
Prime Minister Tan Sri Muhyiddin Yassin, in his special televised address yesterday, said the earlier three-month programme had saved 2.2 million jobs.
He had said the unemployment rate was projected to rise from 3.9 per cent in March to 5.5 per cent in May, resulting in around 860,000 jobless Malaysians.