BULETIN GAP
GAP
: Package not for people but businessman
KUALA LUMPUR, March 11 — Malaysia’s
larger-than-expected RM60 billion stimulus package
brought cheers to businesses but some economists
said today it lacked steps to give an immediate jolt
to the slowing economy.
Consumers and opposition lawmakers also expressed
disappointment that the mini-budget unveiled
yesterday was lopsided in favour of businesses and
little done to improve overall income of the people.
The unprecedented massive spending to spur growth
over two years is aimed at avoiding what could be
Malaysia’s first recession in a decade this year.
The government expects the economy will shrink 1 per
cent in the worst case scenario and grow 1 per cent
in the best case scenario.
With government guaranteed loans for businesses
worth RM25 billion, or 41 per cent of the package,
it will buffer downside risks to corporate earnings
and help industries struggling with debts.
Some economists, however, said there would have been
greater impact if the package included measures to
raise disposable income for lower and medium-income
groups.
“We had earlier expected several measures to boost
consumption like cash-vouchers or cash bonuses,
which would have had an immediate effect on
Malaysia’s economy. A tax waiver...would have also
provided the most and fastest multiplier effect,”
AmResearch said in a report.
The Federation of Malaysian Consumers Associations
said subsidies for fuel and food allocated under the
package provided temporary relief but nothing was
done to improve the overall standard of living.
“The government should have increased the spending
power of the people instead of just giving breathing
space because at the end of the day, the people will
still find it hard to make ends meet,” said its
secretary-general Muhammad Shaani Abdullah.
AmResearch said the measures were unlikely to help
halt weaknesses in Malaysia’s exports, which plunged
nearly 28 per cent in January, its largest drop in
28 years. It predicts the economy will shrink 2 per
cent this year.
The package is in addition to RM7 billion of
stimulus spending announced in November.
It includes a fiscal injection of RM10 billion in
2009 which will raise the government budget deficit
from 4.8 per cent of gross domestic product to 7.6
per cent this year. There will be another RM5
billion injection in 2010.
The stimulus plane failed to boost the stock market,
where the benchmark index fell 0.6 per cent today.
The Malaysian Employers Federation has also
expressed concerns that plans to double the levy of
foreign workers under the package may backfire as it
will raise the cost of doing business. The Malaysian
Indian Restaurant Owners Association said many of
its members may have to close shop as they won’t be
able to afford the higher levy.
The increased levy is aimed at cutting reliance on
more than 2 million foreign labourers in the country
and give jobs to locals.
Despite the doom and gloom, ECM Libra said in a
report that it was optimistic that some form of weak
recovery will emerge later this year. The stimulus
plan doesn’t contain market-moving measures but the
impact on the economy will be positive, it added.
Petikan dari MalaysiaInsider. 12hb Mac 2009. (
Diedit oleh admin )
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