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Fiscal Package Can Spur Growth - Economist

KUALA LUMPUR, March 10 (Bernama) -- The RM15 billion fiscal injection in the RM60 billion stimulus package is a short-term measure to avoid the contraction of the economy, said an economist.

Prof Dr Mansor Jusoh of Universiti Kebangsaan Malaysia (UKM) said the fiscal injection would ensure that the Gross Domestic Product (GNP) growth would not be negative due to lower demand for Malaysian products from abroad.

"However, the effect will depend on how the allocation is spent," he said when commenting on the mini budget tabled by Deputy Prime Minister and Finance Minister Datuk Seri Najib Tun Razak at the Dewan Rakyat here today.

The RM60 billion package, to be implemented over 2009 and 2010, includes RM15 billion as fiscal injection, RM25 billion in Guarantee Funds, RM10 billion for equity investments, RM7 billion for private finance initiatives and off-budget projects, as well as RM3 billion in tax incentives.

Prof Mansor said the fiscal injection would ensure that the unemployment rate would not worsen and the workers would not be victimised.

He said in the long run the fiscal stimulus would influence the perception of the people and the international communities and create a good investment climate.

National Union of the Teaching Profession (NUTP) secretary-general Lok Yim Pheng said the fiscal stimulus was timely as facilities at missionary schools needed to be upgraded.

"This is good news for schools including those in the interior which needed funds to upgrade their facilities and basic infrastructure like access roads to schools," she said.

West Malaysia Malay Teachers Union president Mohamed Sabri Mohd Arsad said basic amenities in schools ought to be upgraded for students' convenience and safety.

He said technical officers at district education offices should inspect the schools in their areas and recommend repair and upgrading works.

"This will ensure repair and upgrading works can be carried out quickly as schools are rather slow in filing complaints on the maintenance and repair works needed," he said.

In MELAKA, Melaka Chief Minister Datuk Seri Mohd Ali Rustam said the people should participate actively in the economic activities to earn extra income.

"As the package will benefit everybody, it shows that the government is not neglecting the people in facing the economic downturn," he said, adding that, the implementation of the fiscal stimulus should be monitored to ensure its effectiveness.

In IPOH, Perak Menteri Besar Datuk Dr Zambry Abdul Kadir said the opposition should help make the second economic stimulus a success and cut down on politics.

"It is a comprehensive package that will benefit the people, and the public and private sectors.

"It should not be viewed as a political expediency to serve the interest of certain groups," he told reporters at his residence here today.

Human Resources Minister Datuk Dr S.Subramaniam said the additional RM50 million allocated under the second economic stimulus package would be spent to rebuild 40 Tamil schools.

"With RM50 million allocated under the first economic stimulus package and RM30 million more approved before the last general election, we now have RM130 million to rebuild Tamil schools," he said.

National House Buyers Association (HBA) honorary secretary-general Chang Kim Loong described the RM200 million allocation to build more low-cost houses as a dream come true for the lower income group.

He said the mini budget should have allocate funds to revive abandoned housing projects to help buyers who had become victims.

Federation of Malaysian Consumer Association (Fomca) president Datuk N.Marimuthu said the package would benefit all sectors and hoped it would be implemented effectively.

"More importantly, it will ease the burden of the lower income group as we can be rest assured that essential items like prices of sugar, flour and bread, and toll charges will not be increased," he said.

Fomca secretary Muhamad Sha'ani Abdullah said the package would create confidence among consumers that their purchasing power would not be decreased.

"With more jobs being created, the purchasing power will increase. How strong will it be is yet to be seen," he said.

-- BERNAMA

# posted by share n care @ 6:31 PM