[KUALA LUMPUR] Malaysia unveiled a US$36 billion package to help people through a nationwide lockdown that was extended for a second time with Covid infections still elevated.

The plan includes a RM10 billion (S$3.23 billion) direct fiscal injection and RM10 billion direct cash aid to the people, Prime Minister Muhyiddin Yassin said in a televised addressed on Monday.

The announcement marks the fourth stimulus package announced by the government this year. It comes a day after Mr Muhyiddin said Malaysia will remain under a lockdown - in place since June 1 - after the country counted 5,586 new Covid cases on Sunday, above the 4,000 level the government had set for easing curbs.

Extending the lockdown will be an additional blow for Malaysia's economy, which the government expects to bounce back strongly only in the final quarter of the year. Earlier this month the government said it would revise down its earlier estimate of 6 per cent to 7.5 per cent economic growth for this year because of the lockdown.The World Bank last week slashed its 2021 forecast for Malaysia to 4.5 per cent growth, from 6 per cent.

Mr Muhyiddin in May unveiled a RM40-billion package to boost health-care capacity, increase cash aid and ensure businesses continuity. The various stimulus plans are on top of the country's record RM322.5-billion budget this year. The government has "very limited fiscal space to spend" more, Mr Muhyiddin said when unveiling the May package.

Malaysia expects to transition to the second phase of its recovery plan once new daily cases drop below 4,000, 10 per cent of the population is fully vaccinated and usage of ICU beds is moderate, Mr Muhyiddin said earlier this month. The government expects to meet the inoculation milestone in mid-July.

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