Former finance minister Lim Guan Eng said Prime Minister Muhyiddin Yassin's latest aid package was not enough to get the country through the recession.
He said this in response to the RM20 billion “Pemerkasa" package - Program Strategik Memperkasa Rakyat dan Ekonomi (Strategic programme to empower the people and economy) - which included RM11 billion in fiscal injection.
"How can a mere RM11 billion in fiscal injection pull Malaysia out of its economic recession, when the gross domestic product (GDP) contracted by 5.6 percent in 2020?" Lim said.
Lim, who is also the Bagan MP, pointed out that the previous much larger economic packages have been unable to sufficiently cushion the blow from the Covid-19 pandemic.
"Muhyiddin appears to have forgotten that his RM305 billion Prihatin economic stimulus package and RM322.5 billion Budget 2021 last year, as well as the RM15 billion Permai stimulus package in January this year, was deemed ineffectual in preventing either an economic recession or an international credit ratings downgrade for Malaysia by Fitch Ratings.
"Clearly, the Pemerkasa RM11 billion fiscal injection is insufficient to jump-start the economy when RM45 billion economic 'big bang' is needed," said Lim.
The DAP lawmaker added that Perikatan Nasional had also missed its economic targets.
The Finance Ministry had projected the 2020 unemployment rate to rise to 4.2 percent, GDP growth rate to contract by 5.5 percent and the budget deficit to surge to 6 percent. Instead, unemployment rose to 4.5 percent, the economy contracted by 5.6 percent and the budget deficit ballooned to 6.2 percent," he said.
He said the latest aid package stuck to the old paradigm of one-off payments instead of a sustainable and recurring assistance.
He added that this was compounded by hefty fines the government was imposing for violating the movement control order (MCO) rules.
"What is the point of giving RM500 one-off assistance to individuals and RM3,000 one-off grants to small businesses when they can be fined RM10,000 for individuals and RM50,000 for businesses?
"Giving a little with the right hand but taking more with the left hand does not help to lessen the financial burden of the rakyat," he said.
Lim stressed that at least RM45 million is needed to create new jobs and save existing ones, slow business closures, provide rental subsidies for businesses, overcome the education crisis and provide new sources of future growth. - Mkini
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