Tuesday, March 10, 2009

WOW..... 60 Billion This Time

But first and foremost.....................


In the spirit of Patrick Teoh's blog.......... NIAMAH!!!!!!!!!!!!!


Cruel Angel said...

60billion isnt impossible but usually 10% only reach the Rakyat...

90% belongs to...

CYberMoo said...

What first stimulus? Where do you hear it? ha ha ha ha

By the way I just read Jeff Ooi comment on the 60 billion which I reproduced below.

RM60b? Hogwash over two years!

There is hogwash in the package.

Firstly, Gross Domestic Product (GDP) is calculated on an annualised basis. Thus, it is quite misleading for Najib to say the RM60 billion allocated for the Second Stimulus Package (mini budget) -- to be spent over two years, 2009 through 2010 -- equals 9% of the country's GDP.

Secondly, in a nutshell, of the RM60 billion pledged, only RM15b is real out-of-pocket money from the federal coffers in the form of fiscal injection -- and for it to be spent over two years, it means only RM7.5b of real money will get into the system to pump-prime domestic consumption.

The balance of RM25b are for guarantee funds (presumably for commercial and corporate entities but details unknown), RM10b for equity investments (target counters unknown), and RM30b for tax incentives.

No details have come forth as I listened live in the Dewan Rakyat. I am exercising extra caution over what is to be done in equity investments -- whether it's to be pork barrel.

And I dread to see if the RM25b are to be used to guarantee funds geared by politically-linked entities.

Thirdly, there is no 'quick fix' element in the package, meaning critical short-term measures, if it were meant to stimulate the economy during crisis time. No, we don't see programmes like direct grants or unemployment benefits to the target groups facing the crunch. There is no tax cut, either.

Neither have I heard anything strategic and tactical to rescue the low-income groups and the workforce stressed in the current economic crunch through a direct link to their pockets.

SUBSIDIES. No stimulus plans will be complete in Malaysia without subsidies.

RM674 million has been set aside as subsidy to cushion price increase of daily essentials like sugar, wheat flour and bread.

RM480 million is to pay off toll concessionaires to keep toll rates down, and not buy them over, so the gravy train will travel on.

Thus far, the Finance Minister has yet to touch the source of fund, except government bonds, to finance the stimulus package.

Buckle your seat belts and get set for the recession.

BY THE WAY... Tengku Razaleigh, who said the Second Stimulus is too late in roll-out, is sitting in the same hall, listening with his eyes closed.

Posted by Jeff Ooi