27 Mar COVID-19 Economic Stimulus Package 2.0
~ MACEOS Pushes for More Incentives to Help Members ~
A. CURRENT STATUS
Since the outbreak of COVID-19, Malaysian business events’ organisers have reported cancellation of a total of 53 business events and another 57 events have been postponed indefinitely – reported the loss of income as at 15 March 2020 is at RM1.5 billion.
A task force has been set up by MACEOS to deal with the crisis. Proposals have been submitted for Stimulus Package 1.0 and 2.0.
Task Force Members:-
Dato’ Vincent Lim, President of MACEOS
Kenneth Fong, Vice President – Exhibition of MACEOS
Eric Ho, Vice President – Industry Partners of MACEOS
Lee Mark, Vice President – Event Management of MACEOS
Francis Teo, Honorary Secretary of MACEOS
M. Gandhi, Group MD (ASEAN Business) & Senior VP of Informa Markets
Winnee Lim, Sub-Committee – Education & Training of MACEOS
Dee Dee Quah, Sub-Committee – Conference of MACEOS
- Gracie Geikie, Sarawak Region Committee Chair of MACEOS
- Alix Lim, Sub-Committee – Industry Partners of MACEOS
- Jason Teh, MACEOS Youth Chair
B. STIMULUS PACKAGE 1.0 (ANNOUNCED ON 27 FEBRUARY 2020)
On behalf of members, MACEOS has successfully pushed for the following measures under Stimulus Package 1.0 to mitigate the business cash flow amidst the outbreak:
1. Reduction in Operating Cost
- To provide a 15% discount in monthly electricity bills to hotels, travel agencies, airlines, shopping malls, conventions and exhibitions centres.
- To exempt Human Resource Development Fund (HRDF) levies for hotels and travel-related companies.
2. Cash Flow Support
- Bank Simpanan Nasional (BSN) will allocate a RM200 million in microcredit facilities offering an interest rate of 4% to affected businesses. In addition, the approval process for existing loan funds, such as Bank Pembangunan’s Tourism Infrastructure Fund of RM1.5 billion, will be further streamlined.
- All banks are required to provide financial relief in the form of payment moratorium comprising restructuring and rescheduling loans for affected businesses and individuals. Bank Negara Malaysia will ensure that all financial institutions will assist all companies in need without exception.
- Employees Provident Fund (EPF) contribution by employees will be reduced from 11% to 7% from 1 April to 31 December 2020. This will potentially unlock up to RM10 billion worth of private consumption. Malaysian workers have the option to opt-out from the scheme and maintain their own contribution rate during this period.
C. STIMULUS PACKAGE 2.0 (WILL BE ANNOUNCED ON 3PM, 27 MARCH 2020)
MACEOS has submitted on March 17 to Ministry of Tourism, Arts and Culture and Ministry of Finance with the following recommendations:
1. Cash Flow Support to the Professional Exhibition Organisers (PEOs)
This venue subsidy is an attempt to revitalise Malaysia’s reputation as the preferred business events destination and offset some of the many high-profile cancellations and postponements that have occurred in the region. This measure will certainly ease the financial pressure of exhibition organisers, many of which have spent extra cost on marketing and logistics to retain exhibitors and ensure the smooth operation of their events.
Subsidies for Exhibition Postponement and Cancellation:
A total of RM27 million is sought from the Stimulus Package 2.0.
To incentivise a financial grant, specifically for the hosting/royalty fees through the Malaysia Convention and Exhibition Bureau (MyCEB) to support local SMEs to bid more international events to Malaysia.