Malaysian Government’s Bill on Temporary Financing Measures to Mitigate COVID-19 Impact Approved at Policy Stage

The Temporary Measures for Government Financing Coronavirus Disease 2019 (COVID-19) Bill 2020 (Bill), tabled by the Malaysian Finance Minister, Tengku Datuk Seri Zafrul Abdul Aziz, was passed at the policy level at the Dewan Rakyat on the 24th of August 2020.

The Bill, which enables Government financing for economic stimulus packages and COVID-19 recovery plans, has an overall amount of MYR 295 billion or 20% of gross domestic product (GDP), and includes a direct fiscal injection of MYR 45 billion from the Consolidated Fund. Zafrul added that if there was a further requirement for fiscal injections, the Government would increase the stimulus amount. The Bill also includes an increase in the national debt ceiling, which...