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PM unveils RM40b Pemerkasa Plus financial aid package

KUALA LUMPUR: The government is rolling out a mammoth RM40 billion financial aid package to help the people as well as tackle the economic impact of the two-week total lockdown, which will come into effect tomorrow.

Prime Minister Tan Sri Muhyiddin Yassin said the package, named Pemerkasa Plus, will also see support rendered to the healthcare sector during the next phase of the Movement Control Order or MCO3.0, to effectively battle the Covid-19 pandemic and ensure that the nation's healthcare system remains intact.

Announcing the details via a televised address tonight, he said Pemerkasa Plus will see a RM5 billion direct injection from the government.

The aid, he said, comprises 12 initiatives carried out based on three main objectives, namely, enhancing public health capacity, the continuation of the Agenda Prihatin Rakyat and supporting business continuity.

Public health, he said, remains a government priority.

"As I have said previously, we will eventually shift to other phases of the MCO in stages based on risk assessments by the Health Ministry, taking into account, among others, the number of Covid-19 cases as well as the capacity of hospitals and the intensive care units.

"As such, the government has agreed to allocate an additional RM1 billion to boost the capacity and strength of the public healthcare system.

The additional allocation represents a commitment by the government towards ensuring that the healthcare system does not collapse and will continue to operate effectively," he said.

He said firstly, RM450 million will be allocated to increase the beds and ICU capacity for Covid-19 treatment, not only at Health Ministry hospitals but also university and teaching hospitals such as UiTM, UPM and UKM, as well as the Armed Forces' field hospitals like those in Sabah and Sarawak.

"Outsourcing (of patients' treatments) to private hospitals would also be done. This would also include the RM200 million allocation announced by the finance minister on May 22."

Secondly, RM550 million will be allocated to cover further operational and management costs incurred in tackling the Covid-19 health crisis including for medicine, reagents for screening purposes and hiring of officers on contractual basis.

Thirdly is the extension of the service tenure of the existing 14,000 medical officers and nurses on contract until 2022.

Muhyiddin said the government in addition would also re-appoint 500 healthcare staff who are due to retire this year, on a contractual basis.

"I have also instructed the Science, Technology and Innovation Minister (Khairy Jamaluddin) to expedite the vaccination process under the Covid-19 National Immunisation Programme (NIP). I was informed that the vaccination rate in May has reached 80,000 doses daily.

"Insya-Allah, we will be able to reach the targeted 150,000 doses daily by end of June through additional delivery of vaccine by producers, setting up of more vaccination centres, inoculation via drive-thru method and additional volunteers," he said.

The prime minister said projections based on the vaccination rate showed that the NIP would be completed by December.

He issued an appeal to those who have already received their vaccination dates to be present at their appointments.

"It is our collective responsibility to ensure that the country achieves herd immunity by the end of the year."

Muhyiddin also touched on mobility issues among senior citizens and those who face difficulties to go to vaccination centres. He said government would deploy its assets such as buses, vans and use carpooling to help them get vaccinated.

He also welcomed any cooperation by the private sector, non-governmental organisations (NGOs) and civil society for this purpose.

The prime minister also addressed the need for the total lockdown, saying that the "drastic measures", including the closure of social and economic sectors, were necessary due to the upward trend of Covid-19 cases in the country, which has also claimed many lives.

"If drastic actions are not taken immediately, it is feared that the healthcare system in the country will collapse and we will face a bigger catastrophe.

"As I have stressed previously, the closure of the economic sectors would have a huge hit to the country's economy and the people's livelihood. I have to be honest, the government has a limited fiscal space for expenditure at the moment."

However, he stressed that the government was working hard to ensure a balance between lives and livelihood.

He said since Covid-19 hit the country, the government has implemented various assistance and economic stimulus packages totalling RM340 billion, benefiting some 20 million households and over two million businesses with economic injections worth over RM200 billion.

Another RM100 billion from stimulus packages, he said, would be channelled this year, and that these complement the RM322.5 billion in initiatives for 2021.

He said the measures have shown results in terms of the country's economic recovery and its positive impact in further boosting economic growth, supporting businesses and providing assistance to those affected, namely the people and the economic sector.

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