RM60 Billion Stimulus – Is it Adequate?
Deputy Prime Minister and Finance Minister Najib Razak has announced an unprecedented RM60 billion economic stimulus to counter the economic downturn. The sum is impressive but the devil is in the details.
Firstly, it is very important for the economic stimulus to return the people's confidence to continue spending and investing in the local economy. The source of funding the stimulus package should be made clear and transparent. The big Q is how is the government going to fund the stimulus.
Second, there is a need to create a solid mechanism to provide a reliable check-and-balance system to ensure that projects earmarked under the new mini-budget are economically viable and useful. The government should be careful not to spend on projects which are wasteful. It needs to ensure that leakages and wastages are kept at minimum level. Corruption is still a problem in the system. Another equally important concern is poor execution of contractors. Abandoned projects or those not completed on time equal to almost 20-30% of total project value.
