Good News, Bad News, Slow News
We can now feel the economic turmoil as layoffs and closures could be heard everywhere. But the government's RM7 billion stimulus package which was announced two months ago has not been carried out yet.
By TAY TIAN YAN/ Translated by SOONG PHUI JEE/ Sin Chew Daily
Good news: Bank Negara Malaysia (Central Bank of Malaysia) has substantially cut its interest rates and reduced the statutory reserve requirement (SRR).
Bad news: Intel to shutter factories in Penang.
Slow news: After a long wait, the RM7 billion stimulus package would only be carried out two weeks later.
In the face of the economic crisis, good times and bad times reflected different, reactions and thoughts.
Bank Negara did not disappoint the public. Instead, the public paid increased respect to its actions this time.
| "Where is the policy direction? We are a bit puzzled." |
All major countries have carried out the strategy of cutting interest rates. The interest rates of Japan and the United States have been cut to near-zero level in order to allow more funds flow into the market, maintaining the commercial vitality and growth momentum, as well as to alleviate the burden of borrowers.
It does not help much to keep your money in the bank. You must let your money flow in the market for a multiplier effect to make more money. The theory is just as simple. But during an economic downturn, in order to protect themselves, commercial banks would take the opposite direction to tighten liquidity which would have an impact on businessmen and the economy.
Bank Negara must first give an order so that commercial banks would have to cut their interest rates and ease monetary flow in the market. It should be considered as a good news.
However, the economic slowdown effects are hitting the country. As one of the Penang crucial investments, Intel plans to close two of its three factories in Bayan Lepas. The current unemployed population would increase by at least a thousand.
Perhaps, we should not blame the Penang government. It is, after all, a multinational corporation's global response to the recession.
Would Dr M and those who boycott American goods cheer and celebrate? Americans have gone even they have done nothing. It seems like the boycott has successfully shown its impact.
As for the thousand of unemployed public, could they get part of the Malaysia's Palestinian Relief Funds to solve their living problems? Dr M, please give your advice.
We can now feel the economic turmoil as layoffs and closures could be heard everywhere. But the government's RM7 billion stimulus package which was announced two months ago has not been carried out yet.
The second stimulus package has been brought out even the first has yet to be put into effect. Where is the policy direction? We are a bit puzzled.
In fact, the people have no idea how to bear all the good, bad and slow news at one go.
