RM60b package: “The boys” will be licking their lips…

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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?

READ MORE:  Najib’s disastrous legacy: Suffocating federal government debt

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.

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LeBronJames
LeBronJames
12 Mar 2009 10.39am

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”

qunimade
qunimade
11 Mar 2009 3.56pm

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… Read more »

Das
Das
11 Mar 2009 1.30pm

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

Drachen
Drachen
11 Mar 2009 12.21pm

The last big feast on the Titanic?

monreddy
monreddy
11 Mar 2009 11.41am

“When a UNTRUTH is Repeated Many times – it Becomes a TRUTH” !
—- By Jacko

so many spins, so many lies…greed greed greed

Tuah
Tuah
11 Mar 2009 11.27am

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 –… Read more »

Wapot
Wapot
11 Mar 2009 9.59am

The RM60bil bajets plan is good but its only “CERITA DONGGENG” Najib lor!

Collateral Damage
Collateral Damage
11 Mar 2009 9.49am

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… Read more »

najib manaukau
najib manaukau
11 Mar 2009 9.44am

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…..

shankar
shankar
11 Mar 2009 8.37am

We have something called http://www.recovery.gov/

So how transparent is the govt?

104East
104East
11 Mar 2009 6.54am

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.

aca
aca
11 Mar 2009 12.09am

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.

miwaki
miwaki
10 Mar 2009 11.56pm

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.

jeremiah liang
jeremiah liang
10 Mar 2009 11.51pm

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.

jb
jb
10 Mar 2009 11.49pm

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.

Ganesh
Ganesh
10 Mar 2009 11.01pm

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?

Fungus
Fungus
10 Mar 2009 10.56pm

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

Johnny Cheah
Johnny Cheah
10 Mar 2009 10.42pm

ANIL, JUST NOTICED YOU ADD ‘MOST PROBABLY’ TO MY EARLIER COMMENT. THAT DEFINITELY SOUNDS BETTER. THANKS A LOT

SameSame
10 Mar 2009 10.29pm

LOL..(sorry just can’t help this) ..he just stimulated his wife when he mentioned RM60Bil!!!!

Johnny Cheah
Johnny Cheah
10 Mar 2009 10.27pm

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

apapunboleh
apapunboleh
10 Mar 2009 10.13pm

it will only benefit the UMNO cronies while the leftover will given to all the other BN slaves……

sharath
sharath
10 Mar 2009 10.10pm

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….

SameSame
10 Mar 2009 9.37pm

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

Plain Truth
Plain Truth
10 Mar 2009 9.36pm

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?

Johnny Cheah
Johnny Cheah
10 Mar 2009 9.34pm

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… Read more »