Dato' Sri Najib Tun Razak announced the largest ever stimulus package in the History, which amounts to 9% of Gdp if i am not mistaken, and that is certainly NOT SMALL. There are three main questions,
- When are we going to spend these funds?
- Who will actually benefit from the second stimulus package and how do we ensure the money reaches to the right hands?
- Where is the economy of Malaysia heading?
It seems that the idea is worrying because Malaysia's first stimulus package is not even helping much, the 7b package has been disbursed to the ministries and agencies but the problem is that, only RM1billion has been spent. The idea of facing economy crisis is not about the size of package but how fast and effective the money has been spent.
And since malaysia is a growing nation, economic experts are expecting cash to be pumped in by Federal Government faster to the private sectors so that economy could run, but seems that recent news state that the Government is not doing so by only pumping in 30% of the 2 stimulus packages, so this is worrying definitely, i think.
Everyone is worrying that politics still plays its drama in this distribution of package. People are suspecting states ruled by PR to benefit more significantly from these packages, given that PR controls Penang and Selangor as the two most developed states, and by any slight touching these two states, could disturb to pace of recovery of economy of the nation.
But how is this 60b worth package going to help the people?
- 29 billion for private sectors- this accounts to half of the stimulus package, it is nice to hear that Government is backing up big private sectors from collapsing but how are we going to do it and how do we ensure that there is a right procedure has taken place?
- 19 billion for future capacity building- The initial plan is to increase the capacity of LCCT and Penang Airports... but to thing again, why not we use this money to expand railway systems that is so NEEDED in KL? Do poor people use airflights? If public transport system is given more priority to be upgraded, then i guess its the best way to be done to help the lower income community.. Penang needs Monorail but its not been done! Gamuda proposed a bullet train project from KL to Singapore but its not been done!
- 10 billion for supporting vulnerable groups - This seems cool to me as it is helping the people in needs. Subsidies for lower food price and tol will be nice for the lower income group, but bear in mind that job capacity comes before this.. people just learn to 'breath' for a moment, story still stays the same if there is no job available.
- 2 billion for increasing job capacity- This part is awesome, BUT 2billion out of the 60billion? Sounds insane! Government announced that 163000 job opportunities will be offered, but i expect there will be more than this figure. How do they really count anyways? anyone has any idea?
Overall, this package is not performing well, as i jump sites and see comments from the experts, i totally agreed because even right now the media is not reporting any nice improvements.
This package is more to improving economy through private sectors and infrastructures building, but is it meant to help the people really in need? I doubt so. It is just a trickle effect and false hope from the government. The theory of recovering economy is about the amount of spendings from the people, SO the government should assist the people more than giving unnecessary money to the private sectors! DO we really have a concrete plan for the unemployed?
The best evidence will be the amount of package allocated to encourage people to be sponsored to do PHD locally instead of working. To me, that is the Lamest part ever. Speechless. From what i heard Tony Pua said, only lesser than 15% places are filled up for the sponsorship to PHD plan. sweat! First place is that, most likely those who are unemployed are elite civil workers, and mostly had overseas graduation, do they even want to look our local Universtities as an option to do PhDs? or they will rather wait their company to sponsor them abroad? This is ridicolous.
We shall see how fast our nation respond to the package...
There is no problem about recovering from a economy fall, but just.. how fast?
p/s I got Shortlisted for Gamuda Scholarship btw.. praise the Lord!!!