Wednesday, March 11, 2009

Careful considerations, YB Charles Santiago

I refer to a very new posting my Charles Santiago. Yang Berhormat posted his official Press Statement on his blog: Press Statement on the RM 60 billion Stimulus Package

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)


anti-belit phakatan riot said...

Malaysiakini also start to lie/spin?

According to a source close to Anwar, the two leaders had a four-eye meeting which lasted about 20 minutes.

"Anwar asked Abdullah how he could have entrusted the country to (Deputy Prime Minister) Najib (Razak), which the PM said it was too late to do anything now," said the source.

According to the source, Abdullah hinted that he had a core of loyal supporters within the party who would keep Najib in check.

"The two leaders talked about the need to salvage the country and agreed to keep communication lines open between them."

The lunch between the two leaders took place at the house

Former Opposition Supporter said...

I keep hearing Anwar Ibrahim making allegation after allegation that Najib kidnap Phakatan Riot ADUNs every time he gives ceremahs.

However, I have not heard myself if Anwar or his Rioters lodge any police reports against Najib for the kidnapping. If have please give me the link for fear of making wrong allegation against Anwar.

Just fed-up with this Anwar.

It is sad that our Rakyat now blindly believe him with even question. Where is freedom of expression? Where is our intelligence?

It will be a sad day when truth becomes lie and lies become truth!!!

AL said...

An interesting post!

Will feature your post in our website and link our readers to your blog.

All the best!

hishamh said...

I agree: I don't think the government could have reacted faster to this crisis, and they have been very active in gathering feedback on what should be included in the stimulus package.

"two consecutive quarters of negative growth in case you don't know"

Hate to correct you, but that's not the definition used in the US. You can read the NBER statement and FAQ here.

Also, summaries on global stimulus plans are available here and here. As you can see, Malaysia's stimulus package is better than average in terms of scale to GDP (if you take it at 4.5% of GDP over each of two years).

Wei Liang Goh said...

Dont worry. Feel free to correct me. I am not a perfect person and i stand corrected always.

Malaysia's stimulus package is a very unique one and different from the rest.

We are implementing a stimulus package over 2 years.

Not exactly "stimulus" but a careful expenditure to move the economy away from the crisis loop.