Guan Eng calls for another injection of RM45 billion

KUCHING: National Democratic Action Party ( DAP) secretarygeneral Lim Guan Eng opines that the country needs another injection of RM45 billion to haul its economy to the road to recovery.

In a statement yesterday, the Bagan MP said there was no reason for the federal “to be so stingy” about injecting an additional RM45 billion to save jobs, small and medium enterprises (SMEs) and manufacturers.

Quoting a survey by the Federation of Malaysian Manufacturers- Malaysian Institute of Economic Research (FMM-MIER), he said over 41 per cent of manufacturers in the country said their businesses would only be sustainable for less than a year due to the Movement Control Order (MCO) enforced to curb the spread of Covid-19.

“What is interesting are those in the FMM July survey said they could last for 12 months, due to the government stimulus packages, wage subsidies and bank moratoriums.

“Clearly, an additional RM45 billion is needed to the existing RM45 billion fund injection to save not only jobs and SMEs but also manufacturers,” he said.

According to Lim, manufacturing is a key component of the country’s economy, contributing 21 per cent of the gross domestic product (GDP) and over 80 per cent of total exports last year.

He noted that the International Monetary Fund (IMF) had predicted a global economic contraction of 4.9 per cent this year.

As such he said the additional RM45 billion fund injection, moratorium of bank loans, energy discounts and wage subsidies were crucial for local businesses to survive and prevent those unemployed from exceeding one million.

“There is no reason for the federal government to be so stingy about injecting an additional RM45 billion when there is sufficient liquidity in the domestic debt market of RM1.6 trillion to sustain such borrowings.

“The total RM90 billion fund injection from the additional RM45 billion is not significant, compared to Singapore’s S$108 billion stimulus package,” he added.

Lim said the opposition wished to reiterate their willingness to set aside political differences and fully support any financial measure that could lessen the burden of the people by doubling the RM45 billion fund injection.

“Failure to do so may lead to job losses, business closures in a year’s time and cause untold hardship to the people. By then, even if the government injects an additional RM45 billion will be too little, too late,” he said.