Rep claims PM's stimulus package fails to address Penang's woes

CORONAVIRUS | A PKR assemblyperson has claimed that Prime Minister Muhyiddin Yassin's RM250 billion stimulus package falls short in addressing Penang's needs.

Bukit Tengah's Gooi Hsiao Leung said more thought and planning should have been put into the package so that it can be holistic instead of benefitting only certain quarters.

"Penang is an opposition state and our resources are limited. It is hoped the prime minister can see beyond politics and be inclusive when dishing out financial aid in times like this.

"Be like our Chief Minister Chow Kon Yeow. He had no qualms when he invited opposition leader Muhammad Yusuf Mohd Noor (BN-Sungai Dua) to join the state security council to discuss how to better fight Covid-19," he told Malaysiakini.

In a statement later, Gooi said he supported the efforts to help all the "Makcik Kiahs" referring to the hypothetical pisang goreng seller used by Muhyiddin to illustrate the stimulus package.

However, he said the prime minister must not forget the other "Ahmads, Ah Hocks and Muthus, who are employed in the manufacturing and service sectors in Penang".

"I am sure Muhyiddin is aware that in Penang, the manufacturing and service sectors, which includes tourism, account for almost 70 percent of Penang’s workforce. They are the driving force behind the state's economic activities.

"The remaining 20 percent of the workforce is in the government sector and roughly 10 percent work in other sectors such as agriculture, mining and construction, among others," he added.

Gooi was referring to the movement control order, where all non-essential businesses and services have been ordered to close.

The assemblyperson pointed out that over 600,000 people employed in large and small factories, retail shops, restaurants, car workshops, hotels, real-estate in Penang are at risk of losing their livelihood if these businesses go under.

"The effect and economic cost should these people lose their jobs in Penang would be devastating," he added.

Gooi said Muhyiddin’s stimulus package does not go far enough to protect jobs and small businesses, especially in a state like Penang, which relies heavily on the manufacturing, tourism and services sectors.

He said the flat rate of RM600 wage subsidy for three months was insufficient to assist small and medium-sized enterprises (SMEs) in Penang to keep their employees if their businesses are not generating any income.

Gooi suggested that the government make the stimulus package incentives more effective by:

1. Excessive bureaucratic conditions requiring employers to show that their revenues have dropped by 50 percent for the wage subsidy should be done away.

2. Comprehensive wage subsidies must be targeted at assisting all affected by the MCO immediately, as well as after, to help sustain businesses and allow them to adjust and rebound.

3. The three months wage subsidy should be extended for a longer period and should be increased and adjusted according to the sectors most affected by the MCO and the Covid-19 outbreak.

4. In Singapore, the government is covering up to 75 percent of the employees’ monthly salaries for sectors most affected until the end of the year. Malaysia can learn from this.

5. Similarly, the government should also look into covering a percentage of wages for employees who have been asked to go on unpaid leave or where working hours/ shifts have been cut, especially in small and medium-sized factories. This would help avoid massive lay-offs.

6. The federal government should emulate the Penang government’s initiative to offer interest-free loans to SMEs under the stimulus package.

Meanwhile, Gooi said the government must clarify the source for funding the RM600 wage subsidy.

"According to the information given to employers, the payments will come from Socso. Are Socso funds being used to finance this scheme?" he asked.

Gooi said many small and medium-sized companies may not take up the federal loans offered with interests charged when there is no business income generated at this time.

"The working capital of these loans must be to assist small businesses to pay for rental, sundries and workers' salaries," he added.

In the US, Gooi noted, US$350 billion has been set aside to provide loans without interest for such a purpose and these loans would only need to be repaid in the proportion of staff laid off.

A company that keeps all its employees would owe nothing, he said.

"And what about the self-employed who do not have job and income security.

"Individual contract workers paid on contract or daily wages to support the entire ecosystem of manufacturers and service industries should be provided monthly financial assistance until the end of the year and not a one-off only cash payment.

"The one-off cash payments of RM1,600 and RM1,000 per household do not go far enough to assist these groups of people to sustain their livelihoods and jobs.

"The mantra, desperate times require desperate measures cannot be overstated during this time of crisis," he added.

As it stands, Gooi said, the stimulus package announced by Muhyiddin required re-tuning to address the livelihoods and job security of Penangites.

"In this regard, I wholly support PKR president Anwar Ibrahim's call for Parliament to sit urgently to debate the stimulus package to ensure not just all the 'Makcik Kiahs' but everyone is covered and assisted by the government," he added.

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