The Covid-19 pandemic has brought economies around the world to a grinding halt and as such millions have been left without a job. Of course, governments have been scratching their heads on the best ways to help alleviate the fallout from the pandemic and most have introduced bailouts or stimulus packages meant at providing citizens with more purchasing power and financial security.
In Malaysia, our government has introduced Bantuan Prihatin Nasional, in which the government will bank in money into your bank account depending on what category of income you’re in. Now this ranges between RM500 to RM1600 and if you earn more than RM4000, you don’t get anything. Sad, but it is what it is I guess.
That being said, over in the US.. everyone gets US$1200 regardless of their marital status, income and apparently whether their a citizen or not. Many people around the world are getting $1200 banked into their bank accounts thanks to Trump’s US$2 trillion coronavirus stimulus package.
With US$600 billion dollars allocated for families and individuals, it looks like foreigners who are no longer in the US are also getting a piece of the pie. Speaking to friends who studied in the US but have now settled in other countries such as the UK, South Africa, Hong Kong and here in Malaysia, it seems that the only requirement in qualifying for the $1200 pay out is that you file your taxes while you were there.
The consistent theme amongst those who have received the payout is that they all have a social security number, worked for at least a year, and filed their taxes.
Speaking to James*, who studied in Milwaukee and is now a PR Consultant (and also RM5200 richer), he says “When you secure a job in the US, whether part time or not your employer will have to apply for a social security number for you to get paid. I actually knew a lot of people from China who apply for a job just for the social security number and then quit.”
While those that left the US years ago have already closed their bank accounts (and are very much regretting it now), the ones who have only just recently come home last year still have their accounts active and are very much reaping the benefits of this.
Speaking to Wong*, who has been back in Malaysia for a year now after completing his bachelor in Psychology at Michigan State, he says “It’s ridiculous to think that here I am getting RM5200 from The US government when I’m struggling to get the RM500 BPN payout from my own government.”
It’s safe to say that this doesn’t just apply to Malaysians who have studied in the US but also any foreigner who has worked there for at least a year and filed their taxes. According to NBC news, you don’t have to be a U.S. citizen to get a payment. But you do need a valid Social Security number, and they have that.
But seeing as they’re no longer working in the US, their status as ‘resident alien’ should no longer apply. According to the IRS website, you’re considered a resident alien for a calendar year if you meet the green card test or the substantial presence test for the year. The people I spoke to meet neither. So, in a way.. this is an oversight.
It also highlights that those who need the money most may just be waiting the longest to see it. According to CNN, there are millions of low income people who are not normally required to file tax returns that will have to take some action before receiving their stimulus money.
Since we’re on the subject of government handouts..Is Malaysia’s cash handout insufficient?
Well if you’re comparing it to the likes of the US & Canada (Who’s giving Canadians who’ve lost their jobs 2000 Canadian dollars each month) or even Japan, who have just announced a payout of ¥100,000 (RM4066) to each citizen, then no. But it’s also unfair to compare Malaysia with the likes of first world countries.
Malaysia recently added a third economic stimulus package of RM10 billion to help SMEs. This is on top of the original RM20 billion PRIHATIN stimulus package (ESP 1) and RM250 billion ESP2 in order to get the country and its citizens through these tough times.
The package, which includes cash aid for singles, households, civil servants, security forces, discounts on electricity usage, free internet and wage subsidies for SMEs, has received mixed reviews from experts with some saying it’s not enough and others commending the government.
What do you guys think?
*Names changed to maintain anonymity
