Thursday, March 12, 2009

Saving Malaysia: Najib's Recipe

Hantu Laut

It's RM30 billion, just what I figured it should be. Finally, they agree there is going to be a bad recession in the country.Full text of Najib's recipe here.

Finance Minister and Deputy Prime Minister Najib Tun Razak announced a two-year stimulus package of RM60 billion in a mixed basket of the good, the bad and the ugly.There was no mention of where the money coming from or how the government wish to raise the funds.

I must say overall the package is well thought out and should be able to stimulate the economy but obviously much depend on how it is managed and more importantly the global economy is working in tandem with our effort.Nothing much the government can do if the world economy stays in the doldrums.

Those in government and government linked economists wish to believe that Malaysia is different from countries like Singapore and Hong Kong. In some ways that may be true but in many ways they are the same......they are export-dependent economies, making them at the mercy of the world markets.

A prolonged recession would have dire effect on the people's livelihood.Many low and middle income Malaysians do not have savings to tide them over bad times. Severe and prolonged recession would raise tension against the government and ethnic tension, fan by those desirous of pitting the people against the government, would certainly increase.Although, the government have taken the right step to take care of the economic engines first and shows greater attention to its survival, it must not forget the interest and welfare of the individual. There is nothing worst than having no money to sustain your daily existence.That's why I proposed in my earlier post to allow those who have lost their jobs to draw half of their basic salary from their savings in the EPF for a maximum of 6 months.This would give them the basic necessities to survive before they can secure another job.

The double deduction to be given to companies that employ workers retrenched by other companies can lead to abuse. Unscrupulous employers can sack their existing employees and replace with new ones to take advantage of the double deductions.Unless, the government fine-tune the terms and conditions it will have negative effect.

Too much emphasis was given on the financing of business but very little in cutting the costs of doing business.That's why I proposed incentives,rebate and reduction of taxes and duties in my earlier post.In a period of contraction of the economy the costs of doing business must come down either by market forces, by intervention or both.

Loan guarantees and easy access to the capital market would be most welcome by the business community as long as they are not designed to bail out cronies and friends making it difficult for those not well-connected to have access to the facility.

In time of uncertainty, risky and low-yield investments the issuance of government-backed saving bonds is a welcome sign.Although, it will not increase liquidity in the system it is better than the current interest rate of fixed deposit with banks.There will be major shift to these saving bonds and a mad rush to buy it for those who have spare cash.

Equitable distribution of projects and suspension of the NEP during this period of economic uncertainty should be seriously considered if the BN wish to salvage its sunken popularity.

The drop in export is going to be pretty serious.It's going into a tailspin during the 1st half of this year.The 1st quarter result would be out by next month and I wouldn't be surprised to see a decline of 25-30%.
A negative growth for 2009 is not a figment of the imagination. Malaysians should be prepared for more bad news.The stimulus will need at least 3-4 months to kick start and by then we would only have about 6 months left for the year and probably half the job undone.

As usual Anwar Ibrahim is uninspired.

15 comments:

Anonymous said...

Hantu

Nobody is taking you seriously since you have been exposed as a BN/UMNO Bigot.

Only me pasting comments on your website. Poor hantu and his or her's fall from grace and objectivity

Anonymous said...

hantu, since you are so smart tell us how this well "thought out package" is going to benefit the people on the street. u noe guys like urself. u mean that 10,000 interest credit on your bank loan is going to help u feed ur family. hell u cant even pay your installment?!!
!@#$$% why the hell am i wasting my time here. should read rpk instead of this loser. ur time is up, u dont have the "numbers" to be a respectable blooger

donplaypuks® said...

Bro

I don't think we need to put more money in peoples' pockets just yet, so let's keep the EPF cuts as reserve bullets if the situation gets really bad. Besides people must also start cutiing consumption to necessities.

The main areas that will affect people immediately in any prolonged recession willl be:

1. Food & Rent
2. Petrol
3. Road Toll
4. Housing mortagages
5. Car Loans
6. Credit Card Loans
7. Utilities
8. Toll for roads
9. Medical bills
10. Education fees

So, the Govt shoulf have policies to force banks not to foreclose jusy yet by increasing NPL period and stopping banks from increasing interest rates and penalty charges which can snowball.

There should also be a 50% cut in toll charges, and similarly cuts in water, electricity charges by forcing the profiteering IPP's and Water Cos to the negotiating table. Imagine that 45% of Tenaga's costs is for paying for unused electricity from IPp's while UMNO crony cos like Syabas did not put up equity but can afford to pay their CEO $5 million a year!
http://donplaypuks.blogspot.com

kittykat46 said...

Well, I'm not inspired by the RM 60 Billion package.

I won't just condemn it - there are some points in there which can be helpful to struggling businesses, and hopefully help avoid some retrenchments. As usual, it all depends on implementation and how fairly those funds are disbursed.
Another "Kontraktor Class F" or "Kaki UMNO" stimulation will do Zilch to stimulate the real economy.

But I'm very dissapointed with the total lack of assistance at an individual level - and THAT is the quickest and most direct way to jolt the economy , and help the most vulnerable groups.

Edi神 said...

i wonder if najib can save his own ass from atlantuya.. soul!

CK said...

Pengsan

Anonymous said...

hantu,

you inspired?

but you seem to suggest variations, one after another.

I am lost in this one.

HHunter said...

Looks like he's trying to save his soul..

Hantu Laut said...

Anonymous,

If that's what you consider respectable, go ahead, go read all the smutty sites, that's where your brain are more suited.

I don't need moron like you here.

fearless said...

The root cause of the current global economic crises were due to the eroding of confidence in the Financial system originate form US toxic mortgage loan, whereby credits were squeezed, and not a over supply situation. As such the remedies is to tackle the root cause.

Stabilizing the Banks to improve credit flow is crucial to built confident in the Financial system, if that is done then the situation will take care by itself. In our situation our Financial system is still intact but our economy depend greatly on export, when US and China sink, we drown together as we float in the same boat. Clearly we depend on their recovery, however, in the meantime simulation is important to buy time as well as to cushion the impact which allow us held on.

Already there are glimmer of hope at the horizon, two months straight China loan growth rack up and US financial institutions showing sign of stability, retails sale in US is improving,. commodities futures moving up, slowly and surely confidence is coming back.

My call is to start investing now.

Anonymous said...

Hantu

You are getting touching like a bride on her wedding night and also losing your marbles. Your opionions shift like the wind. Never here never there. I guess this summons up the person you are. Are you Najib's spin doctor as some of the commentators claim to.

Anonymous said...

Best is to lower the income tax and public has more to spend. This way even the local kedai runcit can also get the benefits.

Spending must start at the bottom and then only will it reach the top. When you start at the top , the bottom (public ) do not get to see it.

Anonymous said...

All fine or not fine. The Stimulus package was meant to stimulate the BN/UMNO goons wallets and libidos

Anonymous said...

I'm a regular reader of this blog, and I like HL's views, not always jaundiced, not always biased like some.

See here, HL, you need to whack BN govt always, any time to have the numbers to be a respectable blogger.

Cheers
from a regular reader

GOTOHELLYOU HANTU said...

HANTULAUTAN, you are truly one stupid ass dumb fuck. You dont deserve intellectual remarks as you try too hard to sound poised and level headed. Sorry to say you're just another bigot. A bigot, hypocrite, shallow wanker of the HIGHEST order! I have refrained myself long enough from my previous comments but kawan.. hang bodoh la! Tak guna kau merepek pasal ideologi kau tu. All your silly retrospects is giving me tummy ulcer. KISS MA ASS you're inspired! Which contract you going for? Planning to buy a new car? Show your face la.. i really want to see who is this hantu. You like to talk cock!