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.