PETALING JAYA: Some key groups have been left out of the stimulus packages worth RM260 billion, according to economists and industry players.
They said the government should have provided more focused and targeted assistance and not a “one size fits all” package.
In a bid to cushion the economic impact from the Covid-19 pandemic, the government announced stimulus packages, which are over 17% of the gross domestic product (GDP).
On paper, the numbers look very impressive compared with many other developed countries, with various quarters commending the government’s move to save businesses and ensure job security.
Singapore and Thailand, for example, announced stimulus packages that were about 12% and 10% of their GDPs respectively.
Others like the UK (15%), the US (10.3%) and Canada (6%) announced packages smaller than Malaysia’s.
“The government cannot be giving everybody the same amount. Those who suffer the most should be given the most. One size does not fit all,” economist Prof Dr Hoo Ke Ping said.
“The tourism sector, for example, has been suffering since January. We must not forget that they contribute over RM80 billion of the country’s revenue.”
Despite having announced three stimulus packages, it is pertinent that the administration should come up with another one that will give extra emphasis on industries most impacted, including tourism and airlines, Hoo said.
He suggested the government implement qualitative and quantitative easing by creating liquidity – through the purchase of sukuk, government bonds, companies’ shares and assets – to ensure the nation’s finances remain strong.
Universiti Tun Abdul Razak economist Prof Dr Barjoyai Bardai said the government’s decision to limit its wage subsidy scheme to companies with 200 staff or less could also affect many small and medium enterprises.
“The government is assuming that since they are sizeable companies, they would be able to survive. But they also need help.”
Barjoyai added the government could have also provided more for charitable homes and orphanages that typically depend on public donations for basic necessities.
Source : https://www.thesundaily.my/local/aid-should-have-been-more-focused-and-targeted-say-economists-BX2231553