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.

横扫世界各国的经济危机源自美国。作为世界最大经济体,它的影响力冲击全球。

到底经济萧条对马来西亚影响有多大,迄今我们还不得而知,因为这方面的资讯严重匮乏。

国内各领域受影响的程度各异,而制造业面对的冲击力最大。

去年,政府已经宣布第一期的70亿令吉“刺激经济配套”。然而,公众却缺乏有关配套的详情,也无法让面对冲击的领域取得预期效果。

政府打算宣布第二期的刺激配套。希望这将是一个更大的计划,且可以早日付诸落实。

政府一年收入约1千500亿令吉,相比之下,要取得预期成效,去年宣布的70亿令吉数额未免太少。

其实,我们不应过于担心2009年及2010年会有赤字预算案。当经济复苏,我们就会设法如何去平衡预算。

我认为,仍有很多政府资金浪费在那些没有生产力的活动。在我们改变花费方式以抵消经济低迷冲击的同时,应该把既有资源用在有生产力的经济活动。

因此,我想不通为何要迟至7月才检讨电费。当局应该即刻调降电费及燃气收费,因为高企的成本已经对各公司构成压力。

此外,基于人们的需求减少,加上成本不断攀上,很多公司可能面对现金流转的问题。

据我了解,在能源密集的工业,能源占成本总额的20%。去年,工业用户的电费及天然气价格分别上涨了26.6%及71%。目前汽油价格已经大幅度下调,因此没有道理要延迟检讨以上种种收费。

相反的,政府应该要更了解各工业当下的需求及给予协助,让他们有能力度过这个难关。

我希望第二期的刺激经济配套会一项是值得期待的喜讯。

12 comments:

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.

Ong

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...

dr,

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...

蔡医生,
霹雳州发生了政变,敢担当的几位马华博客呛声了,但是还没看到你对当前的局势发表文告。经济当然重要,但是在政局动乱的当儿谈经济是不是有点儿鸵鸟?

蔡医生,
霹雳州关马华啥事?今天的霹雳局势就是未来的大马局势。若是马华想再次得到人民的委托,你们必须当个全民的领导。想想老翁他的鸟少了个苦胆也少了根毛,干不了也飞不高。

在太平盛世之时马华当前的这套‘不补不死’招,对人民补不到但也害不死。个个安居乐业倒也无所谓。可是乱世之时马华也同样用这套‘不补不死’招人民肯定受不了。

蔡医生,
昨天的许月凤与您当前的情景很类似,可今天她犯糊涂,成了国家民主进步的大罪人。若从政只是为了名与利,那是俗人所为无可厚非,可我们期待您能够脱俗,带领我们走向更繁荣的马来西亚。

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 price.new 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 .

bye

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...

有一个小故事,它曾经深深感动过我:

日本的雪斋禅师是德川家康童年时期的老师,有天他问家康:“国家必须要有粮、兵、信。如果你是领导人,三种之中又只能选一种,你要选什么?”家康认为百姓吃饱最重要,因此答:“粮。”

雪斋一听,立刻拿起禅杖重重地敲了一下家康的脑袋,喝声道:“混蛋,没有“信”,无论粮食充足与否,都会引起争夺、战乱。”这一番教诲,使家康从令人瞧不起的孤儿,一步步迈向受人敬重、建立太平盛世的德川幕府。

而在中国,史记也有记载:“得黄金百两,不如得季布一诺。”生于秦末汉初的季布,性情耿直又非常讲信用,没把握的事,绝不轻易答应;若答应了,再怎么困难,也会办到。因此时人认为,百两黄金都不如季布的承诺可靠。

德川家康因为诚信,而得民心;季布因为“一诺千金”,所以获得侠义之士奔走说项。

换句话说,家康若不奉行诚信,民心离他远去,他的性命就如草芥一般,随时会遭杀害;季布若无诚信,空有能力,也无人愿意冒险挽救其性命。

诚信重如性命,它不但能保命,更能彰显生命的价值。是以,有诚信的政治人物,必定是能成大事,为民服务的贤能之士。

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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