I will respond with respect to YB Klang's Statement.
- In YB's opinion, when should we have launched a multi billion dollar ( a mega one ) stimulus package? Should we have done it in October 08? December 08?
- I am interested to know because we cannot just say it is too late. Every Tom, Dick and Harry knows how to say that but when do you think should have been the right time?
- The latest closure of production plant comes from Marvell, an American firm, in Penang.
- If we had implemented it earlier, then the Opposition might say "Is it necessary to have so much?"
- Mind you that EPU and Jabatan Statistik Negara have the necessary data and information of the economy. However, these data are not live information and require a certain period of collection and confirmation.
- Careful observations will ensure the necessary amount of stimulus package.
- Even now, US stimulus package cannot guarantee the recovery of the economy even though it is at USD 700-800 billion.
- There are even calls for AIG to be declared bankrupt. Citigroup's financial standing is uncertain. What more to say about the multi billion dollars which the automotive companies in US say is insufficient and they want more?
- Again, careful observations must be carried out and not blindly announce stimulus packages at a time when production plants are only beginning to close down.
- Directives and confirmation of shut downs came not long ago. More will come soon, believe me.
- Perhaps YB should analyse the patterns of huge stimulus packages globally.
- Developed countries like US and Singapore announced their stimulus packages right after an official declaration of national recession (two consecutive quarters of negative growth in case you don't know).
- Is Malaysia too late or not, I am not sure. I will avoid making uninformed judgements for now.
- Having said this, I agree with you that the RM 7 billion stimulus package first announced did not seem to have effects on the economy and it was like sending a fly to fight a dragon.
- I once discussed this with a fellow Economist friend and we concluded that if RM 7 billion can save a RM 600 billion economy, then Malaysia's economic patterns must be studied thoroughly and someone could win a Nobel Prize from there.
- Nevertheless, thank you YB for your care and concern with the economy. I hope you were among the few Opposition members present during the Mini Budget presentation.
(Credits to TheStar and ABC News for the photos)