‘A commitment to boost recovery’

KUALA LUMPUR: Malaysia’s sixth stimulus package reflects the government’s commitment to keep strengthening economic recovery, economists said.

Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said issues such as loss of employment and cashflow continued to reflect the economic impact of Covid-19.

“The allocation for the vaccination programme has been increased from RM3 billion to RM5 billion to speed up the goal of achieving herd immunity by the end of this year.

“Those in the B40 group will receive financial aid via a cash transfer programme.

“The government is trying its best to ensure that vulnerable sectors are taken care of,” Afza-nizam told the New Straits Times yesterday.

Prime Minister Tan Sri Muhyiddin Yassin yesterday unveiled the RM20 billion Pemerkasa assistance package, which includes RM11 billion in additional fiscal injection from the government, with five thrusts and 20 strategic initiatives.

He said the country was embarking on the fifth stage or the “revitalising” phase of the country’s 6R economic recovery strategy to empower the economy.

Apart from fighting Covid-19 and driving economic recovery, Pemerkasa is another effort by the government to strengthen Malaysia’s competitiveness, ensuring the inclusivity agenda of the nation as well as transforming the economy.

Putra Business School Associate Professor Dr Ahmed Razman Abdul Latiff said Pemerkasa was a direct response by the government to requests for immediate assistance by affected groups and businesses.

“This is strengthened by the fact that the initiatives and assistance given in this package are specific and most are direct cash injections.

“If carried out properly without delay, it will have an immediate impact on the economy.”

He said there were concerns that the RM11 billion cash injection would affect the nation’s fiscal deficit.

However, rising oil and palm oil prices would ensure that the government was able to achieve its targeted fiscal deficit rate, he added.

Source: NST