Thesun 2009-03-11 Page03 Ensure Success Of Stimulus Packages

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| WEDNESDAY MARCH 11 2009

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Ensure success of stimulus packages ing their jobs. In some ways, it is true that much of what is happening elsewhere is slow in affecting us but, gradually and surely, the bad times will hit us. We are lucky in not being hit by the bad times so soon because there is still a lot of money, estimated at RM250 billion, in circulation, which generates business and all kinds of other transactions. To ensure that there is no contraction in liquidity, the nation’s economy must continue to grow even at a modest level of 0.1% as in the last quarter of 2008. And, hence, the stimulus package of RM60 billion announced by Deputy Prime Minister Datuk Seri Najib Razak, who is also the finance minister, in Parliament yesterday. It is hoped

Unite and focus on goal, says Abdullah by Giam Say Khoon [email protected] KUALA LUMPUR: The government is confident the second stimulus package totalling RM60 billion will be able to cushion the country from the impact of the global economic recession, Prime Minister Datuk Seri Abdullah Ahmad Badawi said. He said action taken in the package will help Malaysia sail through the recession if they are well implemented. “For such a big budget, it needs determination and cooperation from all quarters, including the private sector, to make the implementation a success,” Abdullah said at a press conference at the parliament lobby with his deputy, Datuk Seri Najib Abdul Razak, who presented the mini-budget. “The recession will become worse. Najib has also stressed how important it is for us to really understand (the impact of the recession) as the future is not easy. “However, the stimulus package will help alleviate our suffering and all depends on the people, who should give us the support.” Abdullah said what is needed is to be united and focused on one goal. Other reaction: MCA president and Transport Minister Datuk Seri Ong Tee Keat said the second stimulus package showed the government cared about the difficulties faced by the people. He said it would also create work opportunities. “We also see new projects that will help improve the competitiveness of the country, like the building of a new low-cost carrier terminal, which shows the government’s commitment to better the air services sector and stimulate the economy,” he said. Penang Chief Minister Lim Guan Eng was disappointed that there was no direct aid given to families. “Although the amount is big, what would the man in the street benefit from? We want to know the direct benefit to the people,” he told reporters. Lim said direct aid is important and the people should have been given cash incentives, like what has been implemented in Singapore, Taiwan and Thailand. “If there are huge projects, I propose that there should be open tender for all and not just

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for companies registered with the Finance Ministry,” he said. DAP information chief and Petaling Jaya Utara MP Tony Pua said the actual amount the government is forking out is only RM15 billion, “which is too small”. “There are some good measures for the long term, like the RM25 billion guarantee scheme for manufacturers, but such measures take a long time to (have an) effect,” he said. “In a crisis budget, we have to think of two aspects – short-term measures, and medium- and longterm measures – and I do not see any short-term measures. “In times like these, it is important for us to put money into the pockets of the people, especially those who are in need. I do not see any unemployment benefit, not even the conventional measures like food stamps or coupons for the people to buy goods, which will immediately have an impact.” Malaysian Employers Federation (MEF) said companies will be able to save more than RM400 million in the next two years with the reduction in the contribution to the Human Resource Development Fund (HRDF) under the second economic stimulus package. MEF executive director Shamsuddin Bardan told Bernama this was something the employers had been asking the government since last year. At present, the employers pay RM1 a worker a month towards the fund. This has been reduced to 50 sen a worker. The government should consider giving a full waiver on the retrenchment sum received by the workers, he said. The package had proposed a 40% waiver. Universiti Kebangsaan Malaysia (UKM) economist Prof Dr Mansor Jusoh said the RM15 billion fiscal injection in the stimulus package is a short-term measure to avoid the contraction of the economy. He told Bernama the fiscal injection would ensure that the Gross Domestic Product (GNP) growth would not be negative because of the lower demand for Malaysian products from abroad. “However, the effect will depend on how the allocation is spent,” he said. Mansor said the fiscal injection would ensure that the unemployment rate would not worsen and the workers would not be victimised.

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that the package, and the first one announced at the end of last year, would boost growth and avert the negative growth that many countries in the region are experiencing. For instance, Japan is experiencing -2.6% growth, South Korea -4% and Singapore is forecasted to be between -2% and -5%. The republic’s national bank recently revised the outlook to -8% but the nation’s much-respected founding father and Minister Mentor Lee Kuan Yew has recently conditioned Singaporeans to expect the worst, a negative 10% growth. Even the International Monetary Fund has revised its 2.2% growth outlook for 2009, made in November 2008, to 0.5%. The global outlook is bad as the most of the major industrial

nations, which are also the major importers, are already in recession. As a result, our export, on which we depend for our economic health, have declined by as much as 27.8% in January. It is good that the government decided to be frank with the rakyat on the state of our economy and the gloomy prospect for the next two years, by which period the global downward plunge is expected to be arrested. The rakyat must know as everyone must rally and cooperate to ensure that we survive this very bad patch so that we bounce back when the world recovers from this global economic downturn which has been compared to the Great Depression of the 1930s. Under the two stimulus pack-

ages, the government has put in place a series of incentives to keep the economy going, to ensure that the number of jobless people is kept to the minimum, and a series of measures to alleviate the pain of those affected. While the government is to be congratulated for the elaborate strategies under the stimulus package, what is most important is for it to ensure that the allocations reach their targets quickly and are spent effectively. All the efforts must have traction as otherwise the stimulus package is just a lot of funds down the drain. Perhaps, it is worthwhile to remember that many stimulus packages of countries in the region and beyond have failed thus far to do what they were designed to do.

Prime Minister Datuk Seri Abdullah Ahmad Badawi shakes hands with Deputy Prime Minister and Finance Minister Datuk Seri Najib Abdul Razak after Najib unveiled the RM60 billion second economic stimulus package yesterday.

SUNPIX

MANY people may think that we are still enjoying the good times. After all, they point out, people are still filling up shopping complexes and other large department stores. If they are told that these people are just window-shopping and not buying anything they would point to shoppers coming out of these complexes with bulging bags. And many people are still eating out. Many are still travelling. So where is the recession? “What recession?” screamed one recent newspaper headline as if challenging the creeping pessimism that the country cannot be sheltered from the economic turmoil that is taking place in the region and the rest of the world which has resulted in millions los-

At the Dewan Rakyat ‘Little Napoleons’ come under fire “LITTLE Napoleons” who are more powerful than ministers continue to hamper the delivery system and development in many states, Datuk Tajuddin Abdul Rahman (BN-Pasir Salak) said. He said the imbalance in development and delay in implementing development projects were caused by bureaucracy among government officers and departments. This was the main reason for the imbalance between the developed and less-developed states. “The prime minister had said that ‘Little Napoleons’ remain in the system and hamper the delivery system. But why are such ‘Little Napoleons’ allowed to remain?” Tajuddin asked when Deputy Minister in the Prime Minister’s Department Datuk S.K. Devamany was winding up the debate on the motion of thanks to the Yang diPertuan Agong for the royal address. A number of MPs from Sabah and Sarawak also expressed concern with the imbalance in development between the states in Peninsular Malaysia and Sabah and Sarawak. – Bernama

Karpal challenged to repeat remarks DATUK BUNG MOKTAR RADIN (BNKinabatangan) challenged Karpal

Singh (DAP-Bukit Gelugor) not to use parliamentary immunity as a shield and to repeat the remarks he made about Umno Youth outside the Dewan Rakyat. Speaking after Deputy Finance Minister Datuk Kong Cho Ha tabled the Supplementary Supply Bill (2008) 2009 for first reading, Bung Moktar added that if Karpal was “sincere and had the guts”, he should take up the challenge. Bung Moktar was referring to Karpal calling Umno Youth “celaka” in the Dewan Rakyat for allegedly sending an envelope containing two bullets to his house in Penang. He also moved a motion to have the matter discussed in the Dewan but Deputy Speaker Datuk Dr Wan Junaidi Tuanku Jaafar denied it, saying a parliamentary committee was looking into it and he did not want to pre-empt anything. – Bernama

Nga disappointed over rejection of motion NGA KOR MING (DAP-Taiping) expressed disappointment over the rejection of an urgent motion he tabled last week to debate the Perak government crisis. Nga said the motion, which requested the House to debate the alleged violation of power by the Executive to obstruct the convening of the emergency Perak

assembly meeting on March 3, was rejected by Speaker Tan Sri Pandikar Amin Mulia on the ground that the issue was being heard in court. “If the state secretary can simply lock the state assembly building, it is an embarrassment to the Dewan Negeri and a danger to the sanctity of the legislative institution and the doctrine of the separation of powers,” he told reporters at the parliament lobby . Nga reiterated that it is an offence to obstruct MPs or state assemblymen from attending sittings under the Section 124 of the Penal Code and one found guilty can be jailed up to seven years. If the Executive were allowed to do this to the state assembly, the same thing can happen in Parliament, he said.

Hotline to answer tax queries THE Inland Revenue Board (IRB) has opened a hotline to answer queries on tax-related matters pertaining to the mini-budget 2009. Taxpayers with queries may call 03-62010550 or 03-62031537 between between 8am and 6pm today, the board said in a statement. The mini-budget speech by Deputy Prime Minister and Finance Minister Datuk Seri Najib Abdul Razak is also available on the IRB website at www. hasil.org.my. – Bernama