Finally, they seem to be taking the economic crisis a bit more seriously. Or maybe they just didn’t want to make us panic and to undermine business confidence any further by telling us that dark clouds lay ahead. But the cat is out of the bag now.
Here’s an analysis I did for Asia Times:
Malaysia wakes up to crisis
By Anil Netto
PENANG – A big new economic stimulus package unveiled by Malaysia’s Finance Minister and Deputy Prime Minister Najib Razak is being viewed as belated official recognition that the country is being hard hit by the global economic and financial turbulence, with worse to come.
The Malaysian economy grew by just 0.5% last quarter and many economic analysts have predicted a technical or real recession later this year. The government has revised its own forecast for 2009 down to between negative 1% and positive 1% growth in gross domestic product (GDP).
As one of Asia’s most trade-oriented economies, with exports accounting for around 125% of GDP in recent years, the collapse in external demand is taking a growing toll. Swiss bank Credit Suisse said in a recent report that “[Malaysia’s] downside risks are the highest in Asia, after Hong Kong and Singapore, especially given the big drop in commodity prices.”
On March 10, Najib announced a new 60 billion ringgit (US$16 billion) stimulus package, the second such package the government has announced since November. The allotment exceeded the expectations of many analysts, who predicted it would be closer to 30 billion ringgit. Even so, the market reaction to the new package has so far been mixed. Full article here.
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The whole thing is not transparent, the deficit is getting higher, the domestic debt is soaring sky high. This is dangerous.The savings will dry up if exports do not recover and the prices of commdity do not stabilise within the next one year.. The country ‘s finance management is far below the expectations of the people. The rich getting richer, the ordinary and the poors are burdened by the monopolies of privatisation. Will the next generations be burdened with huge debts from 50 years of Bee-End rule and this gigantic stimulus package? Will the next generation sees a scenario whereby… Read more »
“Najib has also indicated a larger future role for the services sector in the country’s growth mix, which he aims to increase to 70% of GDP from 46%. Without a concrete plan to manage the transition, he will have his work cut out for him.”
The Finance Minister’s view is, in my view, the wrong strategy to follow. Services up to 50%-55% of GDP-mix at most, but no more than that.
“Imagine Power To The People” John Lennon.
This Dinosaur Stimulus Package have plenty of tricks…lacking in substance and vision. In this difficult time, is’nt it the responsibility of the govt to protect jobs and easing the hardship of the taxpayers by giving them tax refund? I do see this as a priority…only burdening future generations with high debts.
Majority of Malaysian are dumb to vote in BN again and again for decades, what can we do? They scared that racial riots (uncertainty) will happen if existing government collapes. Fear of change is one of the main factor most of the older generation in Malaysia would find it difficult to swallow, younger generation with access to information via finger tips (IT) would have a different opinion altogether, come 13th GE, I would strongly believe Perak & Terengganu (back to opposition), with Perlis, Mallacca & Sarawak fall to opposition. God Bless Malaysia.
I think not.
Topic: Why I am disgusted by the RM60bil stimulus package http://www.facebook.com/profil…topic=7965
Even those who disagree with my rationale do not seem supportive on Najibs’s stimulus http://bongkersz.com/2009/03/1…uragavell/
60 paces Count on it Do you get the deal? Somebody beats you You lay wasted Shading tears of unfairness The gold in each hole Dying to get a piece of it Lining up under the hot sun The hot waving heat hit home Do you have a link? To the bigwigs in the circle? 60 paces they tell you You wait whole day No result to show Holding alms The poor eyes run On the streets The traffic lights blink Is it green or it is red? 60 paces so near yet so difficult to know The marketing targets… Read more »
It is already a trick.
Where’s the RM60b?
Oops by the way, it is a 2nd trick…the first one was
Where was the first RM7b?
Oh.. I feel so stupid…..
The stimulus package is good but how much of it will be quietly siphoned off? Or channeled to benefit cronies? Is there a mechanism to check whether all of it is utilised properly? Who and which sector deserves the benefit is the most important factor. No point giving out aid when some crony companies might get the aid. The stimulus package is like scholarships. When I was studying in UK before, some who had scholarships to study were anak Datuks and Tan Sris. Some were so rich that they had houses costing millions, and a fleet of BMW and Mercedes… Read more »
The very first thing the government need to do is make sure that our ringgit will not devalue too fast. The recession is actually a period of monetary reconciliation, where slave nations will face the onslaught of currency devaluation while the consuming nations or the masters will make sure that they have the purchasing power to continue their luxury lifestyles. We need to have strong foreign reserves to protect us from the onslaught. But our leaders are too clever, they want to spend our monies wantonly, without knowing there is an impending onslaught of currency devaluation. They are all fools… Read more »