Save The “Heart†Before Saving The Market
The question is not about the amount of money. It is about how you are going to spend it instead. If you use it well, RM60 billion will be more than enough; otherwise, it would never be sufficient no matter how big the amount is.
By LIM MUN FAH/ Translated by SOONG PHUI JEE/ Sin Chew Daily
To be honest, after the long mini-budget announcement, I believe that 90% of the general public are just like me, we seem to have understood but we dare not to say that we do completely understand. At the same time, we dare not to say that we do not understand at all either.
However, the direction of the four major objectives is clear. To reduce unemployment and increase employment opportunities; to ease the burden of the people; to assist the private sector in facing the crisis and to build capacity for the future are all pressing priorities. The question is, how to achieve these goals?
The RM60 billion second stimulus package is twice the amount expected earlier. But still, some people are asking: Is it sufficient?
| "In order to save the confidence, it requires the government's response policies and the business sector's self-response ability." |
It is not a simple question. If you insist an answer, I can only formalistically say: The question is not about the amount of money. It is about how you are going to spend it instead. If you use it well, RM60 billion will be more than enough; otherwise, it would never be sufficient no matter how big the amount is. Moreover, we still haven't reached the bottom of the financial crisis and the market is difficult to be controlled. There are too many unpredictable factors.
We must admit that we are facing an unprecedented challenge today. Our exports declined 27%, direct investments dropped 50%, unemployment rate increased to 4.5%, deficit rose to 7.6% and economic growth receded to 1% to -1%. These series of negative data are really shocking us.
The most worrying is, at this very moment, the business sector's willingness to invest is not strong and the people are seriously lack of confidence.
Therefore, the key is “confidence”. Only by saving the “heart”, we can save the market. Only by rebuilding confidence, we can tide over the tough times.
In order to save the confidence, it requires the government's response policies and the business sector's self-response ability.
During the economic depression, it is understandable that enterprises in hardship ask for a relief. But if they are trapped in the hardship because of their own long-term internal mismanagement and poor operational efficiency, and they are now asking for help without an introspection or taking initiative to improve themselves, the government has no reason to keep assisting them by using the people's hard-earned money from the national treasury.
We may save them this time, but we can't help them forever.
