Some very interesting plans under the RM 60 billion stimulus package:
In addition, as a joint effort between the Government and the private sector, the Government will assist in the auto-scrapping scheme for PROTON and PERODUA. Under the scheme, a discount of RM5,000 will be given to car owners, who trade in their cars, which are at least 10 years old, for the purchase of new PROTON or PERODUA cars. The Government will finance part of the discount borne by PROTON or PERODUA. This scheme is intended to stimulate car sales, as well as reduce carbon emission.
The aviation industry has expanded rapidly with total passenger traffic increasing by 5% to 47.4 million passengers in 2008. The number of passengers using low cost airlines has also increased to 18.5 million. Given the Low Cost Carrier Terminal (LCCT) in Sepang has limited capacity to handle more passengers, Malaysia Airports Holdings Berhad will build and operate a new LCCT at Kuala Lumpur International Airport (KLIA) at an estimated cost of RM2 billion, which is expected to be ready in 2011.
Projects to improve telecommunication infrastructure, including broadband libraries, Broadband Community Centres as well as the provision of basic telephony services in 89 districts in rural areas at a cost of RM2.4 billion by the Malaysian Communications and Multimedia Commission; and Construction of sky bridges and covered walkways between buildings, especially in the Golden Triangle, Kuala Lumpur at a cost of RM100 million.
A PIECE OF MY MIND
I have to say people should not attack Najib Tun Razak if they are not happy with the budget. I believe the stimulus package was formulated by Economists in the Economic Planning Unit and consultations was done with several independent experts.
Perhaps Najib gave some "guidance", I don't know.
Anyway, I agree with Jeff Ooi on certain matters. He wrote a blog entry HERE.
I am unsure about this RM 25 bil in Guarantee Funds. What is this? I hope it doesn't mean that these are to guarantee the deposits in all financial institutions.
If it is, I do not see why we should have that unless of course Malaysia's financial institutions will hit the wall soon.
This is something worth clarifying with Najib.
Nevertheless, the next time you go to a CIMB Group (US$ 7 billion) branch, feel proud that it is now worth more than Citigroup (US$ 5.7 billion) - on 7th March 2009. Read more HERE.
I think Citi's value has increased due to a rally recently. Ceteris paribus, assuming rallies are distortive, one can claim CIMB is stronger than Citigroup.
The plans highlighted above are interesting. Proton suffered under Abdullah Badawi. Now, I hope Najib can revive Proton and continue the financial solidarity of our national carmaker.
GM sells millions of cars every year, yet they bleed and lose money. The 3 largest American automotives sent their CEOs in private jets to Washington to ask for multi billion dollar bailout.
Perhaps, some should read also about the headache in Ssangyong Group (Korea).
So, there is no point arguing that Proton is protected when others are protecting their car industry too.