Dato Richard Wee.
KUCHING (Mar 18): The Sarawak Federation of Chinese Associations has found Putrajaya’s latest economic aid, Pemerkasa, narrower in scope and less beneficial for the people compared to the previous Prihatin packages.
Its president Dato Richard Wee said the initial Prihatin packages had more positive economic impact with more assistance for small and medium enterprises (SMEs) and individuals affected by the Covid-19 pandemic.
“Previous ones were more focused on the overall assistance to SMEs and individuals. The recent one is more on certain specific sectors though more focus but less far reaching,” he said when asked to comment on the programme announced by Prime Minister Tan Sri Muhyiddin Yassin yesterday.
Wee said the new Pemerkasa, which is short for Strategic Programme to Empower the People and Economy, seems to focus on assisting the tourism and hospitality sectors.
Worth RM20 billion, Pemerkasa aims at curtailing the spread of COvid-19, drive economic recovery, strengthen national competitiveness, ensure a regional and community inclusion agenda, and transform the economy.
The new programme also included targeted tax deductions, moratoriums and deferments, besides micro-credit financing and other schemes to help the people generate more income.
Since the Covid-19 pandemic hit the country, the federal government had announced five assistance packages, namely Prihatin worth RM250 billion, Prihatin SMEs (RM10 billion), Penjana (RM35 billion), Kita Prihatin (RM10 billion), and Permai (RM15 billion).
Wee pointed out that the main issue arising from the pandemic currently is the huge decline in revenue in most business sectors, adding that even a reduction or exemption of sales and service tax would not have any positive impact on the industries as the tax was basically a consumption tax.
“Any indirect assistance such as lowering the direct and indirect taxes will only be felt in the future,” he said.
He added that all incentives or assistance packages were only as good as its implementation and fast delivery, and if they reach the sectors that needed them most.
Hence, the monitoring of the schemes and packages must be done to ensure that it has its intended impact, he said.
Wee, nonetheless, said all aid packages and assistance from the government were welcomed.
“The important question is whether they will yield the intended effect,” he said.