An enormous package that exceeds the expectations of most people – two weeks before the Umno general assembly.
RM60 billion of our money! And guess what? RM29 billion of this is slated for “assisting the private sector”. The “boys” will be licking their lips and rubbing their hands in anticipation. (I can just picture it – stimulated by the stimulus package!)
First off, the obvious question: where is this money coming from? “Domestic sources,” says Najib, cryptically. Apparently, there’s “ample liquidity” in the system.
And secondly, what mysteries lie hidden behind the RM60 billion? Let’s keep it simple. The RM60 billion package comprises:
- RM15 billion in fiscal injection (RM10 billion in 2009 and RM5 billion in 2010). Fiscal deficit expected to rise to 7.6 per cent in 2009;
- RM25 billion in guarantee funds (RM5 billion for SME Working Capital Fund, another RM5 billion for Industry Restructuring Fund and the rest?)
- RM10 billion in equity investment (For Khazanah?)
- RM7 billion for private finance initiative and off-budget projects (Where is this “private finance” coming from? Not out of the EPF, I hope.)
- RM3 billion in tax initiatives
The RM60 billion will be spent under four key “thrusts”;
- Reducing unemployment/increasing employment (bloating up the civil service?): RM2 billion
- Easing burden of rakyat: RM10 billion (including RM8.4 billion projects under the Ninth Malaysia Plan to be accelerated). The government will also borrow RM5 billion from the rakyat by issuing “savings bonds”;
- Assisting private sector: RM29 billion (RM5 billion for SME Working Capital, RM5 billion for Industry Restructuring Fund and the rest?)
- Building capacity for future: RM19 billion (Khazanah investment funds to be increased by RM10 billion, RM3 billion of which will go to telecommunications and RM1.7 billion for the Iskandar region in Johor. Taking up the slack of foreign investors?)
There’s also going to be an increased government subsidy for Proton and Perodua. The government will part finance RM5,000 discounts given by the national car-makers to those who replace their old cars (more than 10 years) with new Protons and Peroduas. (An earlier announcement said the discount was only for those with cars older than 15 years. Car sales down, huh folks? Very generous of the government to use our money to help Proton/Perodua. Why not invest this public money in public transport?
And GDP forecast for 2009 in the range of -1.0 per cent to 1.0 per cent? Come on, get real! Singapore is already spiralling downwards. Does Najib seriously think we can get even -1.0 per cent (forget about growth of 1.0 per cent)? What happened to his earlier forecast of 3.5 per cent growth for 2009? Is he going to come up with yet another lower revised forecast a few months down the road?
Najib is still thinking it’s going to be a U-shape global recession when in reality, there is a growing risk of a prolonged L-shape global Depression.
Hiyaaaaa, so easy anwser oso you all cannot get ah????? there will be plenty of katak2 to feed lar, and some of them may not come cheap cheap. the rest go into my kocek lor…… so simple
Complain about this comment
Like or Dislike:
0 
0
Anil, it is not important where the money is coming from. It is vital however to ask, how much of the RM60 bil will be siphoned off?
And whose pockets will it go into?
Complain about this comment
Like or Dislike:
0 
0
Thats a lot of money to play around with. Do not forget about the buy-election, helping out buddies, more people to buy over etc. Now here is one headache over. What better way than a stimulation plan.
Complain about this comment
Like or Dislike:
0 
0
They still haven’t got the whole point about global imbalances. Msia has to build up its domestic demand and the only way is to raise productivity and invest in human capital, i.e. remove/revamp the NEP. Empower and build up confidence in the people rather than just provide incentives for SMEs or retrenched workers.
Giving more goodie to Proton and Perodua is just protecting these automakers vs other players. They should have done the opposite and cut import taxes on foreign cars so that Msians can reduce their high cost of car ownership.
Complain about this comment
Like or Dislike:
0 
0
I hope our Finance Minister understand what he is proposing.Kalau hanya budak budak di Finance ministry yang propose,tolong tanya sampai kau paham ya.
Complain about this comment
Like or Dislike:
0 
0
if you have spare cash, buy Sports Toto and Johan Holdings.
You laugh all the way to the Bank. cant fight them, join them!
Ha2, its Najibland.
Complain about this comment
Like or Dislike:
0 
0
[...] Anil said ‘The “boys” will be licking their lips.‘ [...]
Complain about this comment
Like or Dislike:
0 
0
Why all the trouble? Why not just distribute cash. 60billion for 27million citizens. That’s RM2222 for every citizen. Even more if we take away the rich upper class.
Complain about this comment
Like or Dislike:
1 
0
We have something called http://www.recovery.gov/
So how transparent is the govt?
Complain about this comment
Like or Dislike:
0 
0
Now all UMNO members are waiting to become millionaires and … Najib forgot to mention how much of the billions will really
at the end get to the people…..
Complain about this comment
Like or Dislike:
0 
0
The package can be RM100b or RM100 trillion and its not going to help. A stimulus package should be across the board. The concentration on a narrow group of industries and zero benefit to the general public does not help at all.
It certainly does not help to alleviate my situation nor that of my company’s. Tax break for renovation. Ha! Ha! Ha! As if I am going to renovate my office in such times. The double tax deduction for hiring retrenched workers could be good though. Me and my friend have mooted a scheme whereby he sacks himself from his company and me mine, then I hire him and he hire me. Hey presto, double tax deduction on salaries paid.
Complain about this comment
Like or Dislike:
0 
0
The RM60bil bajets plan is good but its only “CERITA DONGGENG” Najib lor!
Complain about this comment
Like or Dislike:
0 
0
60B RM is a lot of loot to spread around. However, there do not seem to be any money for national investment – new public infrastructure or build economic engine. This may pump money in the system in the short term. But it is selling Malaysia short on the long term.
Consider the Malaysian economic engines and think what will happen when things turn around. What will happen to Malaysia then.
Economic engines of Malaysia ( what earns Money) and their status
1. Oil Palm – no longer number 1
2. Rubber – no longer number 1
3. Oil – depleting resource
4. Electronic – structural change. Malaysia no longer attractive
5. Manufacturing – ditto
6. IT – stillborn initiative
7. Shared services – maybe
None of the 60B RM goes to expand, enhance or develop new growth area. The after crisis dont look good.
Compare to Obama’s initiative. Yes, he is spending unprecedented amount of money. But large sums are going into investment.
Malaysia. I cry for you.
Complain about this comment
Like or Dislike:
0 
0
“When a UNTRUTH is Repeated Many times – it Becomes a TRUTH” !
—- By Jacko
so many spins, so many lies…greed greed greed
Complain about this comment
Like or Dislike:
0 
0
The last big feast on the Titanic?
Complain about this comment
Like or Dislike:
0 
0
Ok Guys and Gals!
Wait for the next by election leading to the next GE! We have had enough of this “lot” of …. from Putrajaya! The time has come … and let’s all do it graciously, shall we?!!!!
Das
Complain about this comment
Like or Dislike:
0 
0
Where are the money comes from? Most probably from:
1. Every litre of petrol, 40 sen goes to the Guomen.
2. Saving millions from petrol subsidies every month.
3. Selling petroleum futures for the next 10 years or more.
The outcome will be another two generations of sufferings.
The best things to do in order to relieve the sufferings of the people are:
1. Nationalise all toll highways.This will cut down inflation and less burdern for the people.
2. Reduce price of petrol down to RM1.40 per litre to lessen inflation.
3. Reduce the price of food and raw materials for food manufacturing.
4. Increase income tax exemption for middle income groups (RM15000 instead of eight thousand for a person).
5. Open tender to erase corruptions.
Will Najib do that? Day dreaminglah, Bolehlanders.
2.
Complain about this comment
Like or Dislike:
0 
0
[...] Anil Netto There’s also going to be an increased government subsidy for Proton and Perodua. The government will part finance RM5,000 discounts given by the national car-makers to those who replace their old cars (more than 10 years) with new Protons and Peroduas. (An earlier announcement said the discount was only for those with cars older than 15 years. Car sales down, huh folks? Very generous of the government to use our money to help Proton/Perodua. Why not invest this public money in public transport? [...]
Complain about this comment
Like or Dislike:
0 
0
All seniors with experience out there!
There is only one way to make changes, “stop complaining and act on it” remember, remember, remember Malaysian is a multi racial country.
1st mistake is expectable,
making mistake twice is careless,
repeat multiple mistake is ignorant,
continue the same mistake 56 times = insanity
“Change yourself in order to change people”
Complain about this comment
Like or Dislike:
0 
0
[...] this is our small contribution to the country’s economy stimulus package, [...]
Complain about this comment
Like or Dislike:
0 
0