Wednesday, March 11, 2009

Quick Verdict On RM60bn Plan

It looked big, RM60bn is a very big sum, but you can take out RM25bn because thats in loan guarantees, so we are looking at RM35bn, ... and I would strongly discount the RM10bn equity investment as it would not be immediate, so we are really looking at RM25bn tops... still a very decent sum. Its broad based enough. I wish the government would have a website and breakdown the disbursements on a weekly basis. That would give the markets something you cannot buy, confidence in execution. The sum is big but its critical to know when it was disbursed, to whom and how much - that is not too much to ask, is it?

I would have liked it more if it wasn't drawn out over two years. There is not much room to delay the implementation - 2 years is too stretched out .

The one thing lacking is man on the street does not get more money in our pockets immediately. It would have been more effective if we had a partial tax holiday for 2008, sigh.

p/s photo: Sonja Kwok Sin Ney

(image on stimulus package from Malaysian Insider. If you consider the RM7bn + RM25bn = RM32bn or $8.6bn as a more realistic figure for Malaysia, that would put Malaysia just beneath South Korea, which is just about right as Korea has a lot more problems... but surprisingly Indonesia could be doing or should be doing a lot more than Malaysia)


Datuk said...

In my opinion, tough times ahead after gone through the SSP this morning!

Apparently, the contex and content of SSP were not be able to reverse the downturn. Lacking in focus and trying to kill 4 birds with limited bullet is not a smart move either.

In addition, the leakages issues and slow motion in the impementation were not address adequately with concreate plan.

God need to help us now not the SSP.

Good Day.

yj said...

I find it strange that so much emphasis was given towards employment considering that the bulk of it consists of foreign workers which ironically they are trying to cut down. I was very disappointed with the lack of boost in direct local consumption.

Raison D'etre said...

Sigh is right. No tax break, no tax holidays. No stimulant for consumption really.

The gist of the SSP: preservation of the status quo.


hng said...

In regard to 10 bilion equity investment direct to PNB instead of Valuecap, prompted high probability that this money is urgently needed by PNB to subscribe TMI and Maybank right issue...

Chowpiao said...

60bil if distributed over 27mil population, each will get RM2,222. If distributed over the 11 mil workers, each will get RM5454. If these money were given to them and "force" them to spend it, that will certainly spur domestic consumption. Can't they do what other more innovative countries/companies did? Via shopping vouchers etc? If fact, they should give out vouchers that varies from RM20 to RM100 and are acceptable at a long list of shops from Jaya Jusco and Tesco to Ah Beng tyre shops and Ah Lian florist. These merchants will go claim from Pos Laju just that how we are being reimbursed of our "petrol subsidy". Isn't that better?

hal-2050 said...

The KLCI seems to have given its verdict on this SSP. It's slipping down these past 3 days when normally announcements like this would have sent it higher.

hishamh said...

Given the narrative of what Andy Xie was seeing in the global economy in the last post, isn't the lack of consumption measures exactly what is called for?

Tax cuts, rebates, cash disbursements and so on will only result in short term fillip to consumption. By the time the next budget has to be tabled, we'll just have to do it again, and again, and again - and all that money will be spent without addressing the structural issues of changing away from an export-led economy.

hishamh said...

hng: The RM10 billion is going to Khazanah, not PNB.