Coordinate implementation of stimulus packages
KOTA KINABALU: Senator Datuk Yong Wui Chung has called on the federal and state governments to coordinate the implementation of the federal and state economic stimulus packages to ensure the target groups benefit from the assistance provided.
Yong said both Sabah and Sarawak have launched their own stimulus packages valued at RM670 million and RM1.15 billion respectively.
He hoped that the government would optimize the resources and coordinate with the state governments in implementing the federal and state economic stimulus packages effectively.
Yong said that when commenting on the Prihatin Rakyat Economic Stimulus Package (Prihatin) valued at RM250 billion announced by Prime Minister Tan Sri Muhyiddin Yassin.
Of the RM250 billion allocation, of which RM20 billion has been announced in the previous stimulus package, RM25 billion is allocated for direct fiscal injection, RM100 billion in the form of loan moratorium, RM55 billion for a guarantee scheme, RM40 billion for Employees’ Provident Fund (EPF) withdrawal and RM10 billion of other sources.
Compared to the economic stimulus packages of other countries, such as the United States (USD2 trillion), Denmark (USD42.5 billion), United Kingdom (USD66 billion), Singapore (USD 4.6 billion) and Thailand (USD 17 billion), Yong said Prihatin was considered a significant amount of allocation for a stimulus package which aimed to safeguard the economy and people’s wellbeing.
He lauded the stimulus package for It addressed the needs of all the people and groups in the society, including the M40, B40, small and medium enterprises (SMEs) and varsity students.
He also welcomed the National Prihatin Assistance, a one-off cash assistance with an allocation of RM10 billion for the B40 and M40 groups for them to buy daily necessities.
“These groups are more inclined to spend upon receiving cash assistance, which would stimulate the current sluggish economy.”
However, Yong said the distribution of the financial aid was based on e-Kasih, Inland Revenue Board of Malaysia (LHDN) and several other existing data systems. He said the government should consider a more efficient way to identify the target groups who needed the cash assistance without leaving anyone behind, such as street hawkers, freelancers, farmers and daily workers, who were not recorded in the existing systems.
In addition, Yong said the government should ensure the assistance reached the hands of the rakyat as soon as possible without burdening the recipients with bureaucracy.
He said the delivery medium should be effective and easy without requiring the target groups to visit assistance centres or having to manually register themselves as these approach were unsuitable for this crisis.
He said the government should optimize the usage of technology so as not to expose the people to unnecessary risks.
Meanwhile, he said the provision of special subsidy worth RM600 to employees earning below RM4,000 a month for companies that applied for the initiative could avoid layoffs in the short run.
However, Yong was concerned whether the wage subsidy would be effective in preventing employers, who have been gravely affected in terms of revenue and sales during the Covid-19 pandemic, from terminating the services of their employees.
In comparison, he said the Singaporean government has taken the measure to bear 25 to 75 percent of the salary of local workers for a period of nine months.
Yong also believed that the government would reconsider the special incentives for SMEs in the next few weeks for they are the pillars of the country’s economy.
“There will be far reaching implications to our economy if the SMEs do not receive the support they need to survive.”
He also called on the government to reconsider the RM4.5 billion to assist SMEs and micro-entrepreneurs that covers five key initiatives including financing facility with lower interest rate.
“Is it really a wise move for SMEs to take up more loans given the economic uncertainty during and after the Covid-19 pandemic?
“Besides, it always has not been easy for companies to apply for financing from appointed banking institutions and funding agencies even though the government has loosened the requirements.
“I hope the government will review and monitor the implementation of this initiative.”
He also urged the government to explain where the money for the economic stimulus package came from as the previous administration had always stressed the financial constraint of the country that was burdened with over RM1 trillion in debt.
“I have listened to an interview of the current finance minister who could not provide a clear answer as to where the government obtained the money.
“I believe this should be explained in detail to convince the people in supporting the stimulus package.”
He believed that the government would be willing to listen and accept constructive criticism to improve the economic stimulus package.