The RM250 billion stimulus was announced yesterday. Article here. The discussion has already started in FB. Some say thank you. Some say it’s not enough. Some say it should be more detailed. Some say where is the money going to come from? Well, how about just hear what the Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has to say about the state of the economy currently.
Article in malaymail.com Tengku Zafrul said, “I’m confident the financial system can support us as liquidity is still present in financial markets and that’s the reason why we are able to offer this huge financial package which amounts to RM250 billion. Our fiscal position is strong and, in these three to six months, more companies will start thinking outside the box.”
Tengku Zafrul said he and everyone in the ministry were worried about the Malaysian economy. One solution to ensure the economy continues to flow is to put money in the pockets of Malaysians. Beyond this, he added, “The solution must not be a ‘business as usual’ one. The important thing to do is to kickstart the economy with fiscal injections and the package announced by the government today does just that.” Please do refer to the full Article in malaymail.com
Monetary policy alone will not enough. Overnight Policy Rates (OPR) has been cut. (earlier article here) The Statutory Reserve Requirement (SRR) has also been lowered. (earlier article here) Many times, money which people may get may not be spent and instead kept in the bank instead because of the handed out may not be spent but is saved instead. We can look to Japan to understand how people kept saving even though they have already saved a lot simply because they were worried for the future.
Thus, it is important for the government to kickstart the economy through fiscal policies. The continuation of the infrastructure projects will definitely ensure many multiplier effects to the economy. More jobs for the contractors means more workers and these workers will also get money to spend and the economy continues to move. Hopefully we will be able to come out of this stronger. Stay home please.
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One Response
This is a perfect opportunity for the politician in power….right now….to swindle the country..,Malaysia….1MDB…and Najib will look like peanuts….compared to this scandle which in about to happen in the name of Covid 19…using the virus as an excuse to give contracts and exclusive agreements to prefered companies to supply medical supplies and corruption at political level…from government to government….to get medical aid….the rakyat of Malaysia need to stand up and eradicate the root of corruption which is in bred within all Politicians of communities…Malay..Chinese…Indian….wake up people of Malaysia….the politicians have devided the Rakyat so that they can control you…the rulers of each state has the same agenda….to divide the people of the nation using religion and political means…no human has a right over another human….wake up as one nation…one people…and stand up for your freedom, for the freedom of your children and their children…the politician will use covid 19 to load debt onto the country…and people…rakyat will be paying for generations to come with taxes, taxes and higher taxes….wake up people…wake up…