Huge 60 Billion 2nd Economic Stimulation Budget

YAB Datuk Seri Najib Tun Razak



This afternoon, around 4pm, I've got the chance to spent my time as I followed up the presentation of Economic Stimulation Package by our YAB Vice Prime Minister, Datuk Seri Najib Tun Razak.

An enormous package that exceeds the expectations of most people.

RM60 billion of our money!! And guess what, the RM29 billion is for “assisting the private sector”? Huh? What is that suppose to mean?

Of course, there's many youngster could put a smile on their faces, many job opportunities awaits them. All contractors would be delighted, happy with so many projects that awaits them to accept in their own hands.

Construction material sellers would be laughing their heads off because they had the chance to monopoly all the materials; that causes them to have the ability to straight away buy aN S.U.V or may be "the taste of Malaysian"; Mercz, Ninja King, etc.

Our nationality cars such as Proton, Kancil with subsdy of 5k will be saleable again to clear out all old cars as what have been announced by Najib earlier this evening.

The RM60 billion package comprises of:-

RM15 billion in fiscal injection (RM10 billion in 2009 and RM5 billion in 2010). Fiscal deficit expected to rise to 7.6 percent in 2009

RM25 billion in guarantee funds (RM5 billion for SME Working Capital Fund, another RM5 billion for Industry Restructuring Fund and the rest? Where to?)

RM10 billion in equity investment (For who? For Khazanah?)

RM7 billion for private finance initiative and off-budget projects (Where is this “private finance” comes from? Not out of the EPF, I hope.)

RM3 billion in tax initiatives

The RM60 billion will be spent under four key “thrusts”


Reducing unemployment/increasing employment (bloating up the civil services?): RM2 billion



Easing burden of the people, the society: RM10 billion (including RM8.4 billion projects under the Ninth Malaysia Plan to be accelerated). The government will also borrow RM5 billion from the people by issuing “savings bonds”


Assisting private sector: RM29 billion (RM5 billion for SME Working Capital, RM5 billion for Industry Restructuring Fund and where's the rest?)



Building capacity for the future: RM19 billion (Khazanah investment funds to be increased by RM10 billion, RM3 billion of which will go to telecommunications and RM1.7 billion for the Iskandar region in Johor. Taking up the slack of foreign investors?)



To which that I'm worrying about is..

1. Can we afford to spend so much of money?

2. If it does not work out as what have been planned, can our country recover after spending such a Boom Huge amount of money after 2010?

3. Will the delivery system well organized and is it efficient to save our economy?

4. How about the implementation? Remember that the failure to implement will be a down fall of this policy.

5. Where and how did they manage to find that huge figure amount of money? From rain drops?

6. Bare in mind, the economy may stay down for a longer period than if it was the usual V-shape slowdown.

7. Even for 1 billion that had been announced by our Prime Minister for Sabah, they only had given us 300m, what's more if they ask for 60 billion just for the country? Is that fair? Is that worth of something? Or they just forget that they still "owe" us 700m more. I bet they forgot about it.

Well, what ever it is, I hope that the new budget will have a lot of benifits to all the Malaysian.

Thank you.