According to Malaysiakini:
The package, which is equivalent to 9 percent of last year’s GDP, is broken down as follows:
- RM15 billion in fiscal injection
- RM25 billion in guarantee funds
- RM10 billion in equity investment
- RM7 billion for private finance initiative and off-budget projects
- RM 3 billion in tax initiatives
Now, I'm no economist, but I am a little skeptical at this point.
RM15 billion in fiscal injection
Is this gonna be like the RM5 billion "fiscal injection" into ValueCap to NOT pay for its RM5 billion due loan?
RM25 billion in guarantee funds
Government guarantee is nothing new la...Water concessionaires, highway concessionaires, any BN crony company worth its salt is guaranteed billions in profit every year, paid for by rakyat. So, I would like to see if there is anything new in this...
RM10 billion in equity investment
MORE money pumped into the stock market? I would like to believe that companies other than GLCs and crony companies will benefit from this. I would also like to believe that institutional investors are not going to make a killing at the market (like how they did when the previous PM lost untold billions of rakyat money into the financial market black hole to prop up the ringgit)
Anyway, for more details and questions that beg answers, visit anil netto's blog.
Just one interesting point I'd like to point out from there:
"The government will part finance RM5,000 discounts given by the national car-makers to those who replace their old cars (more than 10 years) with new Protons and Peroduas. (An earlier announcement said the discount was only for those with cars older than 15 years. Car sales down, huh folks? Very generous of the government to use our money to help Proton/Perodua. Why not invest this public money in public transport?"Besides that, much of the money is seems to be going into more of the "same old, same old" - infrastructure projects.
Hmmm....In my line of work, I benefit ZERO from the construction sector. SO how is the stimulus package going to benefit me?
SO, my first reaction is - this is nothing more than even larger UMNO/BN stimulus package. I will hold on that view until proven wrong.
Screw all the many polite comments of "looks like it's big enough, let's see if it really works." I have no such patience to wait and see. And I have no such trust in the UMNO/BN govt to do what's right.