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.
Related posts:
Looks like another one of those “saving cronies” budget. I think we’re on our way to being a basket case. You ain’t seen nothing yet.
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Where are we going to raise that money?
If EPF? Please answer where that Rm5b to Valuecap has gone. Then what happen to our dividend last and this year?
If Tabung Haji? Please answer where Tabung Haji gets the money to declare 4% dividend.
If loan? From where? everyone is bankrupt.
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10 billion here, 2 billion there…..whatever. Tommorrow morning, and every subsequent morning, I still got to go to work and my life would not change for the next 2 years anyway. Still got to pay my housing loan, car loan, etc….. same for 99% of us.
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“Still got to pay my housing loan, car loan, etc….. same for 99% of us.”
That’s because you are not “one of the boys”.
There are ways to join them….but you musn’t be too fussy about your soul…
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ANYTHING FOR THIS GROUP:
Re: Zero Brokerage Through Internet Trading
1) The Issues
PERIMSA is shocked to notice an article in the Borneo Post newspaper in Sarawak dated 7th Jan 2009 that CIMB securities is offering zero brokerage for trading through internet. The Star dated 26th January 2009 further publicized that CIMB is the only bank-based broking firm (BBBF) that offers zero brokerage.
The key issue here is that, firstly, the offering of zero brokerage by some participating organization (P.O.s) is directly affecting the livelihood of about 6,000 remisiers. This figure does not include the remisiers’ assistants.
The second issue here is that zero brokerage offered by BBBF create unfair competition in the sense that BBBF is in better position to offer zero brokerage because their main business is money lending and not stock broking. Therefore, BBBF can afford to forego zero brokerage in order to attract the opening of new accounts and at the same time to raise interest free deposit. This will help to lower down their costs of fund. When they lend out this zero-cost fund as consumer loans (e.g. housing, car and credit cards), this is where they make the additional margin to compensate for the zero brokerage. We believe non-bank based broking firms(NBBBF) do not have the luxury to offer zero brokerages because stockbroking is the main income.
Laugh it off, my friends and hopefully they don’t forget remisiers Nothing is that frightening anymore!
SUBSIDIES MAN FOR THIS FORGOTTEN GROUP
Hope the stimulus package offers at least a $2K basic for each of them
http://www.chinapress.com.my/topic/business%20weekly04/
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Will all these monies be accounted for..?
Will we be shown their “spending spree”…????
Yes ! Where is this RM60b comming from..???
And only NOW he wants to look at the economy !
And only NOW he says our economy could be -1% ! Only NOW…!!!!!
What the **** was he doin when US & CHINA were already in recession…???? Playing politics. That’s why…!!!!
Here we, the rakyat are shouting at them to stop throwing “mud” at each other. Still that didn’t stop them.
If our economy have been looked into earlier we won’t be in this “s***”……….!!!!!!
So….! Where is this RM60b comming from..??
How can the rakyat see where it is going & the accounts of it…???
We have the right to know…!!!!!!!!!!!!!!!!!!!!
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Anil, that psudo economist Mr,Rocky has come out with a big headline…60b package……now a days forget going into his blog…just reading his headlines only ppl feel like vomoitting…..wonder why?
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I am sure some of these billions will go to BN controlled state and parliamentary constituencies via the MPs and SAs and projects for UMNO contractors. The Malaysian budget will never miss these groups when dispensing with our money. There will be revolt if their pockets are not filled.
In any case may I know from you Anil, if it would be logical to take this mini-budget in isolation.
Meaning how will other factors – transparency, credibility of the Judiciary and MACC, police brutality, leaders credibility and the Perak Crisis – have a bearing on the economy.
Need these issues be factored into the calculations?
Yes, they is all inter-related, as credibility and confidence is also important. Thanks for bringing up this point – Anil
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sharath – Echoing what you said cos I was reading his post and Anil’s back to back.
anil – Now I got it out of your mouth – my question in your previous post? OUR money.
They are likely to end up borrowing it, as Najib says, from “domestic sources”. But it will have to be repaid some day, so it’s still going to be our money. – Anil
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I am no economist. But I believe that the reduced demand of our goods and services overseas will have a chain effect on the slowing down of our economy. As such, according to my common sense, the main aim of the budget should be to stimulate local consumer demand. In order to do this, the Government must ensure that a big percentage of the RM60bn must end up in the pockets of the consumers. If it only reaches the private companies without allowing the funds to flow to the consumers then I do not think this mini budget will create an increase in local consumer spending which is required to take over the reduced exports figures.
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YOU BET!!!!!!!!!
FINGER LICKING GOOD!!!!!!!
When will this end????????
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Hi Anil, can i copy this article of yours and put in my blog. I linked your blog and read it for quite sometime. This 60bil stimulus is like robbing in daylight with all its grey source and implementation. Sigh~~~
Sure, CK, go ahead. And thanks for the link. – Anil
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wow got 60 billion to stimulate economy but no money to build decent hospital in Kota kinabalu…while some malaysians live in the brink of poverty and in deplorable conditions in variuos rural locations and estates, our leaders live a flashy lives ,enjoy exotic holidays in their exclusive properties overseas. their children can study in oxford eventhough quite stupid but some poor kids dont even have proper shoes to wear to school….we can send a **** to space for holiday but cannot even take care of ppl living on the surface of earth…..cant even conduct a proper investigation regarding a blown up woman with so many incriminating evidence but very quick in shooting down and killing so called criminals…. economy now sucks and the country in limbo but don worry nothing will happen coz the citizens are stupid….50 years already kena tipu you think can change in one day meh!!!last time i pray to one god but now i pray to my various god.
Well, Dr Gigi, Najib did say in his message today, “The Government will also take action to resolve issues related to health services in Queen Elizabeth Hospital, Sabah.” Hold him to his word.- Anil
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I just don’t see how this RM60 billion budget will reach the people to stimulate our pockets. This is just all talk. We won’t get to feel the money, let alone get it.
The Penguin is right, we need to stimulate local spending. But how, when people are losing jobs, getting pay cuts? The package would only benefit a certain group of people, like most of us say, not the remaining 99% Malaysians.
In conclusion, I am not too excited at this announcement.
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My take is that the money should have been put where the sector has the biggest multiplier effect and that is personal consumption. If 29 million Malaysians are given RM1,000, that will be the RM29 billion. Otherwise give 15 million people, RM2000 each.
Or give 2900 companies a RM1 million tax credits or maybe 1450 companies RM2 million or whatever.
It should be transparent exercise but knowing Bolehland… we are all doomed because they are going to throw our money away. The country gets deeper in the recession and deeper in debts, mati semua!
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OF Course OUR MONEY la friends. Our taxes and company taxes are due these two months and then they still loads of epf to play with or go shopping with…so why the BN-UMNO care? Its not their hard earned money they are spending or giving away. I was so sick when i was the face (*****) telling that the 60bil ‘stimulas’ package…stimulating whom if NOT THEM and their KAKIS
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Mini budget for the crony companies
Helping them seem the way
Nothing much for the taxpayers
Even FD interest goes downhill
What help for the workers?
What financial help for the pensioners in FD?
As the rate the Bee Anne leaders think
We will be choked before we could finish our meals
No details
This from the Finance Minister
It looks bad to me
As I read the on line report
Domestic funding
Name the sources of finance
This simple rule he can’t do
EPF or issuing bonds?
Budget must have detailed plans
As insurance people will say
If you don’t know how to plan
You are already cooked
$60 billion stimulus packages
The running boys will leap with joy
The leaping frogs taking the wealth
The peoples’ money they don’t get it
When the trains leave the station
Only the crumbs I am afraid to distribute
Detailed plans are not forthcoming
We will suffer for the incompetent of Bee Anne
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ANIL,IT’S NOT THE BOYS WILL BE LICKING THEIR LIPS THEY WILL BE RUBBING THEIR HANDS WITH GLEE. YOU KNOW AND I KNOW WHERE PARTS OF THE RM60 BILLIONS WILL EVENTUALLY END UP. WHEN THIS IS OVER WE ARE GOING TO HAVE MANY MORE MULTI-MILLIONAIRES. HOW MANY WISHED THAT THEY HAVE TAKEN THE TIME AND EFFORT TO KNOW OUR UNMO POLITICIANS. THE GOVERNMENT IS (MOST PROBABLY) GOING TO PUT MONEY AND TONS OF IT INTO THEIR CRONIES HANDS. SOME GOVERNMENTS ARE HANDING OUT MONEY TO THEIR CITIZEN FOR THEM TO SPEND AND IF I AM NOT MISTAKEN, AUSTRALIA IS ONE OF THEM. WHY NOT THE BN GOVERNMENT ALSO IMPLEMENT THIS. THEN THE POOR WILL ALSO BENEFITS. I AM SURE THE GOVERNMENT KNOWS WHO THE HARDCORE POOR ARE. GIVE THESE PEOPLE A FEW THOUSAND RINGGIT TO HELP THEM DURING THIS DIFFICULT AND TRYING TIME. BY THE WAY, WHO CAN PROPOSE THIS SCHEME TO THE BN GOVERNMENT. PLEASE SOMEBODY OR ANYBODY WHO CAN, DO PROPOSE THIS TO THE POWERS THAT BE. THANK YOU
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Putting aside for a moment the issue of funding such a colossal figure, the more important concern is how much will it finally filter down the the ground (rakyat) level.
A far more effective method will be a reduction in petrol prices. The savings go directly to the pockets of the consumers who will then have more money to spend.
After all, isn’t that the objective of all this fiscal stimulus?
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lol…with so much irritation..i didnt to a spellcheck!
sorry (Anil) for the spell errors….
Re-phrase…
OF Course OUR MONEY la friends. Our taxes and company taxes are due these two months and then they still have loads of epf monies to play with or go shopping with…so why the BN-UMNO care? Its not their hard earned money (they dont know the meaning of it) they are spending or giving away. I was so sick when i saw the face (*****) telling about the 60bil ’stimulas’ package…stimulating whom if NOT THEM and their KAKIS
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Anil, another INtellectual blogger…Mr.wong chun…. recently started spinning with his psdo cries about economy. when u were repeadedly worning in ur blog about outcome of our economy….his MSM daily was reporting utter liesas malaysia GDP is going at 3.5% like…echoing great leaders false promises to malaysian citizens.
he never uttered a word about abnormal expenditures at recent BY- elections, he never uttered about defence purchases…now he is preaching ordinary citizens to be careful about economy. All these r a kind of shameless creatures. Enemies of hardworking common man….
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it will only benefit the UMNO cronies while the leftover will given to all the other BN slaves……
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PLAIN TRUTH, SORRY I DON’T AGREE THAT THE GOVERNMENT REDUCE PETROL PRICE. IF THIS WAS IMPLEMENTED, IT ONLY BENEFITS PEOPLE WHO OWNS CARS. BETTER TO GIVE THE RAKYAT CASH FOR THEM TO SPEND AND CASH WILL BE VERY HELPFUL ESPECIALLY TO THE POOR AND THE HARDCORE POOR. I UNDERSTAND THE AUSTRALIAN GOVERNMENT GAVE OUT 900 AUSSIE DOLLAR TO EACH FAMILY FOR THEM TO SPEND IN ORDER TO HELP LOCAL CONSUMPTION
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LOL..(sorry just can’t help this) ..he just stimulated his wife when he mentioned RM60Bil!!!!
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ANIL, JUST NOTICED YOU ADD ‘MOST PROBABLY’ TO MY EARLIER COMMENT. THAT DEFINITELY SOUNDS BETTER. THANKS A LOT
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