By Jamari Mohtar

A mercy-for-all stimulus to save lives, and restart the economy that is not only inclusive but unparalleled in the history of Malaysia. A whopping RM250 billion for all, not just a few! An unprecedented concern (keprihatinan — and that's why the off-budget stimulus is named as such) for the most vulnerable segments of our nation.

That in sum describes the most generous stimulus ever made by a Malaysian prime minister.

Herein lies the sincerity of PM Muhyiddin Yassin and his big heart in having empathy for the most vulnerable segments of our society who will be the most hard hit by the COVID-19 pandemic.

Out of the RM230 billion dished out in the announcement (plus a meagre RM20 billion from the previous government that was announced by then interim Prime Minister Mahathir Mohamed), the biggest chunk of RM128 billion goes to the ordinary rakyat.

A recent study by Khazanah Research Institute shows that the impact of COVID-19 on the urban poor comprises three major threats — money, food and living conditions. To this, I would like to add livelihood, and the fact that these four threats would also be faced by the rural poor.

In the case of the threat of their livelihood being cut off either because they were retrenched or given no pay leave — especially during the movement control order (MCO) because they have to stay at home — there won't be any money or food for them and their living conditions will turn for the worst. All these are addressed by the PM.

In introducing wage subsidy to help employers affected by COVID-19, especially employers of small businesses, he made an earnest plea to them that with the subsidy programme in place, such employers must not retrench their low-pay workers or put them on no pay leave during the entire duration of the subsidy, especially during MCO.

Even for existing employees who are not of a low-pay category, he appealed to all employers not to retrench them.

Those unfortunate vagabonds are also not forgotten. They would be cleared from the streets and given food and shelter to minimise the rate of infections through allocation that the government is giving to the non-governmental organisations "specialising" in handling people who roams the street. Some RM25 million is allocated for this.

Also notable is the inclusion of the M40 group for the first time in a stimulus package where the RM10 billion in cash handouts also includes them, as well as the freeze on rental collection for government housing units for six months, and when those earning below RM4,000 whose companies' income has dropped more than 50% since Jan 1 are to be paid RM600 a month for three months.

Even the informal sectors like car hailing and the self-employed are being assisted by this inclusive stimulus with cash handouts.

The second largest allocation — RM100 billion — goes to all businesses who are hard hit by COVID-19, especially the small and medium sized enterprises (SMEs), followed by the smallest allocation of RM2 billion for the economy in general.

This includes a 6-month moratorium on all loans by businesses and conversion of arrears into term loans, and general loan facilities among others.

It is not indicated whether the government is using its reserves, so we can safely assume here that an element of prudence is at work so that if this unprecedented round of historic stimulus has not fully run its course, and the situation gets worse, if need be the reserve can be dipped for future rounds of stimulus.

The fact that this historic stimulus in term of its staggering amount is achieved without resorting to the country's reserves is already a WOW factor.

But the real WOW will be seen in the speed and implementation of this stimulus. Will the targeted group i.e. the most vulnerable sector of our community gets the necessary assistance quickly and in time or will they be mired in bureaucratic red tape that prevents them from getting the assistance until it's rather too late?

Will the Ministry of Health get its allocations for buying the necessary equipment to treat the COVID-19 patients or procuring protective gear for its healthcare personnel in the frontline as speedily as it wants?

Thus, speed and implementation are critical success factors in weathering this global economic gloom brought about by the COVID-19 crisis. These can only be seen in the coming days, weeks and months. The devil has always been in the details of its implementation.

Of course, there will always be critics who won't be happy with this unprecedented stimulus. The issue here is because they don't see the difference between relief and outright cash assistance.

Outright cash assistance is mainly for the B40 and M40 whose physical and economic survival are at stake during the COVID-19 pandemic. The moratorium on loan given to all businesses are a form of relief so that their cash flow at this difficult and trying time is not so much affected. It is never meant to write-off their loan.

If you borrow, it is only right that you must jolly well pay back your loan but because of the current difficulty brought about by COVID-19, the government is helping by asking the banks through Bank Negara to delay the payment or repayment of their loan for those who have difficulty in paying.

Ditto for individuals. Some banks have already sent forms to their clients who want to opt-out from this moratorium. Unlike the most vulnerable sector of the society, for businesses and some individuals, the impact of the COVID-19 among them are unequal. Some can still afford to pay their loan despite the impact of COVID-19. So, they should opt-out from this moratorium. This is called equality of sacrifices.

And as for the argument that the government is trading the future for the present, there is a case to be made that shifting some of the future economic spending to the near term in order to minimise the economic impact of lockdown will not put our deficit under stress.

Anyway, too much considerations for the future or long term will, in the final analysis, result in paralysis in making decision for the present. For those who are bent on using the future as an excuse, they would be advised to hear the famous insinuation of eminent economist John Maynard Keynes who said that in the long run, we are all dead!

And please at this extraordinary time of pain and hardship, don't ask where the government gets the monies to fund this staggering stimulus unless you have solid proof that there is some hanky-panky in getting the money.

In this most unfortunate time where there is a fine balance between lockdown and economic death, all must cooperate, all must complement each other and everybody must stay at home!

(Jamari Mohtar is Director, Media & Communications at EMIR Research, a think tank focused on strategic policy recommendations based on rigorous research.)