Second Stimulus Package Highlights

KUALA LUMPUR, March 10 (Bernama) -- Following are highlights of the second stimulus package tabled by Deputy Prime Minister and Finance Minister Datuk Seri Najib Tun Razak in the Dewan Rakyat today.

* Government unveils RM60 billion second stimulus package to insulate the economy from slipping into recession;

* Housebuyers given tax relief on interest paid on housing loans up to RM10,000 a year for three years;

* Additional RM200 million for pulic low-cost housing scheme for low-income earners;

* RM1.6 billion fund to promote investments;

* RM200 million to repair and maintain roads and drains;

* RM150 million for renovation, maintenance and repairs to welfare homes, fire and rescue stations, firemen living quarters and public toilets in mosques, suraus and tourist spots;

* Government to issue syariah-compliant Savings Bonds amounting to RM5 billion this year;

* RM1.95 billion to build and upgrade facilities in 752 schools, particularly in rural areas, Sabah and Sarawak of which RM300 million will be used to improve facilities in government-aided religious schools, Chinese and Tamil schools and mission schools;

* RM230 million allocated to increase electricity supply coverage and water supply in rural areas particularly in Sabah and Sarawak.

* RM350 million allocated for rural road construction.

* Government will provide RM500 million for maintenance of public infrastructure projects, with emphasis to Sabah and Sarawak;

* RM1.2 billion allocated for providing infrastructures and increasing economic activities in Sabah and Sarawak;

* RM300 million for micro-credit programme under AgroBank to assist farmers and agro-based businesses in rural areas and RM50 million for cottage industries.

* RM2 million Fishermen's Welfare Fund to be established and managed by the Malaysian Fisheries Development Authority;

* RM20 million will be provided to improve facilities of day-care centres for the elderly, improve management of women shelter homes and increase facilities for child care centres;

* Existing tax exemption under the retrenchment benefit will be increased to RM10,000 from RM6,000 for each completed year of service;

* Government to establish a Working Capital Guarantee Scheme totalling RM5 billion to provide working capital to companies with shareholder equity below RM20 million;

*Government to establish a Financial Guarantee Institution with an initial RM1 billion in paid-up capital to provide credit to companies intending to raise funds from the bond market. Bonds totalling RM15 billion will be raised under this facility;

* Rights issues by listed companies will no longer need approval from the Securities Commission;

* To encourage takeovers and mergers, the Code on it will no longer be applied to private limited companies;

* Only the Securities Commission has to be informed of any amendments to the terms and conditions of bonds and sukuk issuance;

* Convertible and exchangeable bonds will be exempted from mandatory rating requirements;

* Permanent resident status will be considered for high networth individuals bringing more than US$2 million for investment or savings in Malaysia as an effort to bring high networth and skilled individuals;

* High-skilled foreign professionals may also be considered for Permanent Resident status;

* Government to provide RM2 billion to assist implementation of projects through Private Finance Initiative and public-private partnerships. Private firms to be invited to bid for the funds;

* Government proposes to increase the number of scholarships for entry into local private universities;

* Government-linked Companies to set up 10 not-for-profit private schools;

* The services sector will be further liberalised to woo more investments, bring in more professionals and technology and strengthen competitiveness;

* Foreign Investment Committee to adopt a more liberal approach to bring positive changes and nurture a more investor-friendly environment to attract more investments including foreign direct investment;

* RTM to be allocated RM20 million to implement several projects to develop the local music industry;

* All government procurements will be made through open tenders or restricted tenders except for specific cases.