Thursday, February 5, 2009

The 2nd Stimulus Package

The world’s economic problem is manufactured in America, and being the biggest economy of the world has assumed a global dimension.

Image taken from Google images

There is lack of detailed information about how the economic slowdown is going to affect Malaysia.

The various sectors in our country will be affected in various degree of severity – the manufacturing sector probably is the worst affected.

Last year, the government has announced the 1st stimulus package of RM7 billion. However, there is a lack of public information about the details of the package. Any delay in its implementation will not have the desired effect of stimulating the target sector.

The government intends to announce the 2nd stimulus package. Lets hope it should be done early with a bigger package.

Our government revenue is at about RM150 billion a year and the RM7 billion package as announced is too small to have the desired effect.

There should be less worry about budget deficit for 2009 and 2010. When the economy picks up, we would think of how to balance the budget.

There is still a lot of wastage of government funds for non-productive activities. While we spend our way out of the recession, resources should be for productive economic activities.

Meanwhile, I cannot figure out why the review of the electricity tariff should be delayed to July.

The reduction of electricity tariff and gas prices should be done immediately as higher costs had put pressure on companies.

There is a reduction in demand and coupled with increased costs, a lot of companies may have cash flow problem.

I understand in energy intensive industries, energy costs account for about 20% of production costs. Electricity tariffs were increased by 26.6% and natural gas price for industrial users was also increased by 71% last year.

Now that the petrol price has dropped drastically, any delay in review of the above prices is unjustified.

Government should be more sensitive towards the needs of the industries at this time and assist them so that they are able to pull through this difficult period.

Let’s hope that the 2nd stimulus package is worth the wait.















Adventurer said...

Dr Chua,

I have three questions which relate to politics instead of the stimulus package.

1. Would you care to comment on the political development in Perak?
2. What is the stand of MCA on BN (UMNO) taking over Perak in such a manner?
3. If BN (UMNO) forms the next Perak state government with merely 2 Chinese state assembly person (MCA and a frog), how is MCA going to fight for the Chinese interest in Perak?
I need not remind you that MCA has always maintain that without adequate chinese representation in a government, whether at state or federal levels, chinese interest could not be protected.

Thank you.


shltplnk said...

The government should abolish Malaysian New Economic Policy! I met some Malay in England, after Malaysia government paid off their tuition fees and also the rent, they still have £800 to spend every month. That is ridiculous!!

Vesu said...

2nd stimulus package is the new state government in perak. The Finance Minister is pre-occupied with political vendeta ,, where got time for 2nd stimulus dr.

Chinese said...


You see what happen to Perak. From supporting BN, now no choice to support pakatan. Shame, shame shame. BN will gone in next GE. Strong feelings on that.

KoZeK said...





Mike said...

A group of thieves is trying to steel a bell. Afraiding that people may be aware so they cover both their eyes and ears thinking people cannot see nor hear.

You see when corrupted leaders are put together to form a government what will be the outcome.

Even the Old Lady who sell Nasi Lamak also can logic with me what is happening so do you think the rakyat don’t know what is going on? !

As Old Tun M said what was the hurry? Such action will only attract even more public resentment against the establishment and the consequences will be very dramatic in the next GE.

As I always believe there is always silver lining to every cloud. Dr Chua can you enlighten me on this?

呉 和豪 said...

Dear Dr Chua9

In many ocassions supermarkets will sell item at cost price or even below cost price in order to simulate their overall sales.

Base on the similar ideal , we can attract more investors to come to Malaysia by offering a lower electricity tariff.

Lowering of electricity tarrif is one of the important factors to be considered in econimic stimulus program.

Chee Yong said...

Soi Lek, I challenge you to make your stand in regards to MCA sole rep in Perak saying traditionally MCA will be given an Exco seat.This is a clear indication of him suporting this unlawful takeover. Even Gerakan Youth has came out to say party hopping is not a good culture. Your views are useless since the party you represent "menghalalkan" this dirty way of grabbing power from the rakyat.

笑看风云 said...

Dear dr.
stimulus package?

1) free all monopoly-- import and export eg rice/padi

2)less control on price-- eg cigarate-- impose a big duty on cigaratee and set aside the money for medial say RM 5/ pack.if company want to compete let them drop law or panelty on smuggler.

3) let highway increase toll--- supply and demand if too expansive no one will used the highway . used the comsensate money to improve on federal road portion by portion---
during new year i used federal road . only a few bottle neck that was delaying-- bidor, kampar --

4)cancel windfall tax. --- the tax money in my opinion is extra bonus for workers and reserve during bad time like now.

5) free income tax for 2nd job, 3job--- you work and you enjoy.

6) market price for petrol and diesel -- now or never no more susidise. all subside to develop puplic transport( special a/c)

7)open up agriculture land applycation for illegal planter on exixting lot.landapprove not utlise 1 year cancel
8) cancel all direct negotiation tender-- open let it be bumi or non bumi

8)share market take all bad boards of director to jail / cbt/ malpratise take away all the property and money.---- if you used back the old klse composite index (company in the index) , you know what is the real index is ???

9) revise all the abandan housing project .---call all banker in

10)don't plan too much? soo many corridor ? just get one really kick off .


Poo Ching Loong said...

Saw those feedbacks. I am a BN/MCA supporter. But for the Perak case, i am disappointed. We have to win with pride. God bless next election.

Mike said...








Low said...

Please..nomore wasting tax payer money.
Publish the account for all ministry ...we want to knwo where our money gone!

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