Gov't will struggle to fulfill RM600 aid to unpaid leave workers, says ex-minister
CORONAVIRUS | The government will be hard-pressed financially to fulfil its plan to pay RM600 a month to workers forced to go on unpaid leave, said former domestic trade minister Saifuddin Nasution Ismail.
He said this is because oil prices have fallen to around US$30 per barrel, which is half of what was projected when Budget 2020 was crafted last October.
"This will see a huge drop in government revenue, maybe around an estimated RM10 billion loss of revenue if prices remain in this current range...
CORONAVIRUS | The government will be hard-pressed financially to fulfil its plan to pay RM600 a month to workers forced to go on unpaid leave, said former domestic trade minister Saifuddin Nasution Ismail.
He said this is because oil prices have fallen to around US$30 per barrel, which is half of what was projected when Budget 2020 was crafted last October.
"This will see a huge drop in government revenue, maybe around an estimated RM10 billion loss of revenue if prices remain in this current range," he said at a Pakatan Harapan secretariat press conference today.
Saifuddin was asked to comment on the government's capability to fulfil its promise based on what they knew about Putrajaya's financial status before the change of government.
The government said it would pay RM600 per month for six months to those on unpaid leave earning less than RM4,000 per month.
However, when this was announced, the government only budgeted RM120 million for this to cover about 33,000 workers.
This is after airline and tourism workers were forced to go on unpaid leave amid a slump in tourism due to Covid-19.
More workers are expected to go on unpaid leave when the two-week movement control order comes into force tomorrow.
The order will see non-essential public and private venues closed, meaning many offices will not be open.
While some companies have decided to work from home, this flexibility is not available to all workers.
In light of the current situation with the Covid-19 outbreak, the press conference was streamed live with the media asking questions remotely.
