He said this second stimulus package was designed to circumvent the impact of the Covid-19 outbreak on the country by protecting the people, supporting businesses and strengthening the economy.

He also said Prime Minister Muhyiddin Yassin will be announcing additional support measures for SMEs and micro-businesses sometime next week after gathering further feedback from the sector.

Tengku Zafrul said the ability of the economy to recover was dependent on how well and quickly the Covid-19 outbreak was settled, stressing that “all Malaysians must play their part”.

He said the nation needs to be prepared for the unexpected, highlighting that downside risks remain despite forecasts of the nation’s economy rebounding in 2021 and recovery expected in late 2020.

“Nevertheless, we have the capacity and fiscal space to meet future uncertainties. The government is fully aware of the need to be agile and to respond swiftly,” he said in a statement today.

“To steer us through these challenging times, Bank Negara Malaysia will ensure that the financial system remains stable, with deep liquidity and strong buffers.

“As it stands, the financial system today has RM121 billion in excess capital buffer, as compared to only RM39 billion during the global financial crisis of 2008.”

Muhyiddin announced the RM250 billion economic stimulus package last week, more than 10 times the RM20 billion allocated by his predecessor, Dr Mahathir Mohamad last month.

It comprises RM128 billion for the people’s welfare, RM100 billion for businesses and SMEs, and RM2 billion to strengthen the economy, aside from the RM20 billion announced in the previous package.