Disburse cash without delay, says former central banker

PETALING JAYA: Cash should be handed to the people now to help tide them over during this tough period, says former Bank Negara deputy governor Tan Sri Dr Lin See Yan.

He said the massive stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin was a “delicate balancing act in an emergency situation”, which he said had to be done at all costs.

He said Malaysia would be headed for economic collapse if the stimulus was not announced.

“No doubt it is an emergency. I would like a deficit economy but as we are all being held ransom by Covid-19, there is no choice but to put cash into the people’s hands to ensure they can spend now. It is to make sure there is no inflation and a way to get going again.

“I would not worry about the deficit, as even Singapore which is most frugal, is dipping into its reserves,” he added.

Lin said it was of utmost importance that cash was transferred to the people as soon as possible.

“The government seems to have its heart in the right place but how are they going to get the money to the people? We cannot wait for May or June, even April may be too late.

“Bear in mind, gig workers, self-employed workers and small businesses such as hawkers need money now to buy essential goods. On top of that, if they close down, most of them would not be able to restart.

“I suggest the PM marshals the whole civil service to get the cash disbursed to the people as soon as possible. Dip into the federal reserve if you must,” said the former central banker.

Former Second Finance Minister Datuk Seri Johari Abdul Ghani said Muhyiddin’s latest announcement would create multiplier effects.

“The major part of the stimulus package was already announced before such as the moratorium by Bank Negara (RM100bil), EPF withdrawal (RM41bil), Dana Jamin (RM50bil) and ongoing GLC capex (RM30bil).

“The additional stimulus announcement will give a direct impact to the rakyat especially the one-off payment to the B40 and M40 amounting to almost RM10bil.

“It should give a direct positive impact to improve consumption and create a multiplier effect.

“This stimulus, if executed well, can help to defend the economy, employment and protect the safety net of the rakyat during this difficult time,” said Johari. - Star