Pemerkasa comes at right time, says economist
KUALA LUMPUR: The Strategic Programme to Empower The People and Economy (Pemerkasa), unveiled by Prime Minister Tan Sri Muhyiddin Yassin yesterday, received positive responses from economists.
Economic analyst Associate Professor Dr Aimi Zulhazmi Abdul Rashid said the RM20 billion allocation, which includes RM11 billion direct cash assistance, was timely with the Covid-19 pandemic.
“The package has added to the previous total and now the allocations total RM325 billion. These funds are coming from the government as a special assistance package.
“When the 2021 Budget was tabled in November, we could see how the government continuously supported the country’s economy.
“They’re not afraid to give out assistance. The data released by the government indicates a trade surplus.
“In December and January, export and import indices were
pointing to an economic recovery in 2021.
“The Covid-19 third wave appears to be under control too and this augurs well for our recovery,” Aimi told the New Straits Times.
He said as the sixth stimulus package since the start of the pandemic, Pemerkasa came at the right time because the National Covid-19 Vaccination Programme was being carried out.
He said the package would provide a huge relief for tourism
players, who were on the brink of near collapse.
Pemerkasa would also be good for small traders, he added.
“About 900,000 small- and medium-scale enterprises contribute 40 per cent to the country’s gross domestic product. Without the earlier stimulus packages provided by the government, many would have closed, so it is important as they are recovering in tandem with their sectors.”
Aimi said the economy was recovering with almost 90 per cent of sectors fully operational, except for the tourism industry.
“Tourism industry players and its related sectors are reeling from high unemployment rates and continued closures of tourism-related businesses.
“So the additional financial package is a huge relief for them. Many will want more.
“Certainly the government will provide sufficient funding for this sector.”
He said the Pemerkasa initiatives showed how the government had conducted deeper research into what was affecting the economy amid the pandemic.
“There is more focus on vulnerable segments of society.
“With more data in hand, the government has been able to be more sensitive, not only in identifying those who were previously overlooked, but also providing the right solutions to meet the needs of the people.”
Economist Datuk Jalilah Baba, however, said the government should continue to include more segments of recipients in its stimulus packages.
She said this was vital because more funds to certain segments of society would have a multiplier effect on other segments too.
“Focus should be given to sectors that attract or facilitate domestic investments.
“There should also be more focus on reviving SMEs to ensure their survival amid the pandemic.
“SMEs are supporting bigger companies in terms of producing, supplying parts and components for bigger manufacturers.”
Jalilah said Pemerkasa was a good package, but added that funds should be given primarily to the people and the business sector, which was in dire need of help to stay afloat.
She urged the government to relax certain criteria to receive the allocations, and to expand the number of recipients for each initiative under the package.