Existing recipients of GKP 1.0 and GKP 2.0 and eligible MSMEs under GKP 3.0 will receive RM1,000 from June 10, followed by RM500 in July

by NUR HANANI AZMAN & AFIQ AZIZ / pic by BLOOMBERG

THE government has and will channel a total of RM5.08 billion to almost one million micro, small and medium enterprises (MSMEs) under the Prihatin Special Grant (GKP) since the Covid-19 pandemic started.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (picture) said the financial aid involves existing recipients of GKP 1.0 and GKP 2.0 and eligible MSMEs under GKP 3.0, who will receive RM1,000 from June 10 in stages involving financial implications of almost RM1 billion.

“Payment will be credited directly to the bank account registered in the GKP system and checking approval status can be made from June 8, 2021, at https://gkp.hasil.gov.my.

“Additional payment of RM500, involving an allocation of almost RM500 million, will be paid in July 2021, bringing the total amount under GKP 3.0 of RM1.5 billion,” he said in a statement yesterday.

Separately, Tengku Zafrul said next year, under the recently launched MyDigital, cashless transactions will be the main option at all government agencies to improve the administration’s delivery system for the public.

As at the end of last year, 60% of the government’s total collection was through e-payment, he said, adding that to-date, the government is committed to pursue digitalisation on various ends, including modernising the public service delivery and curbing corruption.

“This will reduce direct contact points between the people and public officials,” he said in his speech when officiating the Malaysian Institute of Accountants (MIA) Conference 2021 yesterday.

Among others, the government has already shifted to electronic identification cards and biometric proof of identity for identification of Malaysians.

On top of this, cash assistance has been accorded mostly on a cashless basis, where applications and payments for Bantuan Prihatin Rakyat and GKP are made electronically and online.

Last year, the National Economic Recovery Plan (Penjana) initiatives rolled out have driven consumers’ acceleration in adopting contactless payments or e-wallets as 15 million consumers claimed the RM50 ePenjana credits for purchases through e-wallets.

Big e-wallet players such as Boost, GrabPay and Touch ‘n Go cumulatively represent the e-money market share with a combined active user base of 21 million and a network comprising over 400,000 merchants nationwide.

Last week, Putrajaya launched the e-Belia programme, giving RM150 in e-wallet funds to all youths aged 18 to 20 and full-time undergraduates in Malaysia’s higher education institutions.

Some RM300 million was allocated for the programme under Budget 2021, which is expected to benefit two million eligible Malaysians.

The initiative is also aimed to encourage businesses — especially MSMEs — to start accepting cashless payment and accelerate the shift to a digital economy.

Meanwhile, Tengku Zafrul said accountants play a key role in driving digitalisation, besides continuing their fiduciary duties in advocating the people on taxes.

“We appreciate MIA’s advocacy on tax governance that focuses on addressing non-compliance and systemic inefficiencies.

“By broadening the tax base — including taxation of the shadow economy, improving tax compliance and administration matters — this will enhance tax collection which is critical to enable the government to deliver more assistance during times of crisis, as well as for the nation’s developmental expenditures and longer-term reform agendas,” Tengku Zafrul said.