ID :
50517
Sat, 03/14/2009 - 15:46
Auther :
Shortlink :
http://m.oananews.org//node/50517
The shortlink copeid
STIMULUS PACKAGE EXCEEDED EXPECTATIONS
By Massita Ahmad, Siti Radziah Hamzah & Mohd Iswandi Kasan
KUALA LUMPUR, March 14 (Bernama) -- Criticism that direct aid such as cash
handouts should have been given out, or that the Malaysian government is only
forking out RM15 billion (US$1=RM3.66) under the second stimulus package, is
misplaced.
If anything, the second stimulus package worth RM60 billion has exceeded
expectations on many fronts, notably in both addressing the needs of the rakyat
and investing in growing future opportunities.
More importantly, stock market investors should not be too perturbed over
Bursa not being 'ignited' by the package as the RM15 billion would be pumped
into the real economy, whereby the multiplier effects would be more sustainable
over the long-term.
Creating demand and supply in the real economy would spur economic activity
as firms continue expansion plans by purchasing goods and services, a vital
ingredient in building confidence in the economy.
"The amount of RM15 billion is reasonable for the short term and shows that
the government is careful in spending," says Muhammad Salleh Majid, the
former president of the then-Kuala Lumpur Stock Exchange, now Malaysian Stock
Exchange.
Otherwise, if more funds are disbursed, it would definitely raise the
deficit level," he told Bernama in an interview.
Cisco Malaysia managing director Anne Abraham said the RM60 billion
stimulus package had exceeded expectations on many fronts.
"It is inspiring to see that while the mini-budget addresses the immediate
needs of the rakyat, the government will also be investing in growing future
opportunities and building the foundation for accelerated growth, once the
global economic outlook improves," she said.
MIDF Research said that the budget unveiled by Deputy Prime Minister Najib
Razak on Tuesday showed the government had been level-headed
as it had not planned to go overboard with the package.
"Populist measures have been generally left out (and) the amount is very
much in keeping the private companies afloat," said the research house.
The cost of doing business has been lowered while access to capital and
credit has been easier. "It is the hallmark of Malaysia's business-friendly
economic development philosophy," it said.
Salleh Majid said giving cash directly to the people could lead to an
abuse
in the system, adding that it would be reasonable to give vouchers to those
people laid off.
To criticisms that not enough was given to the corporate sestor, Cradle Fund
Sdn Bhd's chief executive officer Nazrin Hassan said the private sector should
not rely on the stimulus package alone to cushion the impact of the economic
slowdown.
He said stimulus package should not be seen as a way to cover everyone as it
functioned to aggregate national demand and support displaced workers by giving
opportunities to re-skill themselves.
"You cannot rely on the stimulus package to do everything. It is to sustain
local demand. There are things that the private sector will have to handle
themselves," he said.
Cisco's Anne Abraham said the company was prepared to help the government
develop a strategy to ensure that the stimulus package achieved its goals.
The drive via Khazanah to improve broadband infrastructure in the country
is
decisive as broadband connectivity is no longer a luxury, but a necessity for
government, businesses and citizens.
"If we get this right, then Malaysia's broadband infrastructure can indeed
be the highway to our nation's future," she added.
She said it was critical that the stimulus package was channelled fast and
used
to drive the overall economy so that the impact of the recession was reduced.
This should raise confidence levels among consumers and key sectors and improve
spending in general.
Multimedia Development Corp (MDeC) chief executive officer Badlisham
Ghazali said in ICT software, MDeC had provided grants and incentives for the
benefit of industry players.
"ICT companies should change. They should use all the facilities that we
provide," he said.
The American Malaysian Chamber of Commerce lauded the stimulus package,
saying the proposals were vital and "on the right track" in helping the country
to attract businesses, plus enhancing Malaysia's competitiveness in the coming
years.
AMCHAM said in a statement that the government's key thrusts to reduce
unemployment and increase longer-term employment opportunities through
re-education and retraining of retrenched workers, through a substantial
allocation of RM700 million for these initiatives was a step in the right
direction.
Its president, Karen Albertson, said the benefits of retraining were
critical for upgrading the Malaysian workforce skills to enable them to be more
competitive and enhance the quality of companies' operations in the country.
She said that in particular, the Working Capital Guarantee Scheme,
Accelerated Capital Allowance, Carry-Back Losses, and Industry Restructuring
Guarantee Fund Scheme, and the particular focus on green technologies were
important steps toward not only supporting industry competitiveness, but helping
companies in Malaysia to look at more environmentally-friendly business
practices.
-- BERNAMA
KUALA LUMPUR, March 14 (Bernama) -- Criticism that direct aid such as cash
handouts should have been given out, or that the Malaysian government is only
forking out RM15 billion (US$1=RM3.66) under the second stimulus package, is
misplaced.
If anything, the second stimulus package worth RM60 billion has exceeded
expectations on many fronts, notably in both addressing the needs of the rakyat
and investing in growing future opportunities.
More importantly, stock market investors should not be too perturbed over
Bursa not being 'ignited' by the package as the RM15 billion would be pumped
into the real economy, whereby the multiplier effects would be more sustainable
over the long-term.
Creating demand and supply in the real economy would spur economic activity
as firms continue expansion plans by purchasing goods and services, a vital
ingredient in building confidence in the economy.
"The amount of RM15 billion is reasonable for the short term and shows that
the government is careful in spending," says Muhammad Salleh Majid, the
former president of the then-Kuala Lumpur Stock Exchange, now Malaysian Stock
Exchange.
Otherwise, if more funds are disbursed, it would definitely raise the
deficit level," he told Bernama in an interview.
Cisco Malaysia managing director Anne Abraham said the RM60 billion
stimulus package had exceeded expectations on many fronts.
"It is inspiring to see that while the mini-budget addresses the immediate
needs of the rakyat, the government will also be investing in growing future
opportunities and building the foundation for accelerated growth, once the
global economic outlook improves," she said.
MIDF Research said that the budget unveiled by Deputy Prime Minister Najib
Razak on Tuesday showed the government had been level-headed
as it had not planned to go overboard with the package.
"Populist measures have been generally left out (and) the amount is very
much in keeping the private companies afloat," said the research house.
The cost of doing business has been lowered while access to capital and
credit has been easier. "It is the hallmark of Malaysia's business-friendly
economic development philosophy," it said.
Salleh Majid said giving cash directly to the people could lead to an
abuse
in the system, adding that it would be reasonable to give vouchers to those
people laid off.
To criticisms that not enough was given to the corporate sestor, Cradle Fund
Sdn Bhd's chief executive officer Nazrin Hassan said the private sector should
not rely on the stimulus package alone to cushion the impact of the economic
slowdown.
He said stimulus package should not be seen as a way to cover everyone as it
functioned to aggregate national demand and support displaced workers by giving
opportunities to re-skill themselves.
"You cannot rely on the stimulus package to do everything. It is to sustain
local demand. There are things that the private sector will have to handle
themselves," he said.
Cisco's Anne Abraham said the company was prepared to help the government
develop a strategy to ensure that the stimulus package achieved its goals.
The drive via Khazanah to improve broadband infrastructure in the country
is
decisive as broadband connectivity is no longer a luxury, but a necessity for
government, businesses and citizens.
"If we get this right, then Malaysia's broadband infrastructure can indeed
be the highway to our nation's future," she added.
She said it was critical that the stimulus package was channelled fast and
used
to drive the overall economy so that the impact of the recession was reduced.
This should raise confidence levels among consumers and key sectors and improve
spending in general.
Multimedia Development Corp (MDeC) chief executive officer Badlisham
Ghazali said in ICT software, MDeC had provided grants and incentives for the
benefit of industry players.
"ICT companies should change. They should use all the facilities that we
provide," he said.
The American Malaysian Chamber of Commerce lauded the stimulus package,
saying the proposals were vital and "on the right track" in helping the country
to attract businesses, plus enhancing Malaysia's competitiveness in the coming
years.
AMCHAM said in a statement that the government's key thrusts to reduce
unemployment and increase longer-term employment opportunities through
re-education and retraining of retrenched workers, through a substantial
allocation of RM700 million for these initiatives was a step in the right
direction.
Its president, Karen Albertson, said the benefits of retraining were
critical for upgrading the Malaysian workforce skills to enable them to be more
competitive and enhance the quality of companies' operations in the country.
She said that in particular, the Working Capital Guarantee Scheme,
Accelerated Capital Allowance, Carry-Back Losses, and Industry Restructuring
Guarantee Fund Scheme, and the particular focus on green technologies were
important steps toward not only supporting industry competitiveness, but helping
companies in Malaysia to look at more environmentally-friendly business
practices.
-- BERNAMA
