ID :
44006
Tue, 02/03/2009 - 20:02
Auther :
Shortlink :
https://oananews.org//node/44006
The shortlink copeid
RM10 BLN FOR SECOND STIMULUS PACKAGE
KUALA LUMPUR, Feb 3 (Bernama) -- The much-anticipated second stimulus package is expected to about RM10 billion (US$2.8 billion) on account of further savings from the fuel subsidy -- RM3 billion (US$828.9 million) more than the first package announced on Nov 4, 2008.
Kenanga Research, in its report, "Economic Outlook 2009", released here
Tuesday, said any increase in development spending was expected to further
cushion the Malaysian economy from deepening global credit crisis.
"Assuming the multiplier effect of the November fiscal stimulus starts to
kick in during the second quarter of 2009 and the next stimulus package in April
would start to have an impact in the fourth quarter 2009, we believe it would
help support domestic demand growth and eventually cushion the impact," it said.
It said public expenditure was projected to expand by 9.4 percent this year,
up from an estimated 6.1 percent in 2008, which meant a contribution of 2.3
percentage points to the country's overall gross domestic product growth.
Kenaga said the impact of the packages, however, was premised on speedy
implementation of the projects and disbursements of payment to relevant economic
parties.
It said another plus for Malaysia was the fact that its overall financial
sector's ability to remain relatively unscathed following the US sub-prime debt
crisis.
"This may lessen the overall adverse impact on the economy," it said.
Kenanga said, however, the worst case scenario assumed a sharply
deteriorating global economy on rising deflationary risk while implementation of
domestic fiscal policy stumbled resulting in higher unemployment and sharply
lower domestic demand.
It said the domestic economy was expected to endure a technical recession in
the first half of 2009 which may delay an anticipated gradual recovery towards
year-end.
"The damaging effect of a technical recession in first half of 2009 will
drag down the potential growth of the country's economy for the whole of 2009 to
0.6 percent," it said.
Kenanga said for now, this assumption appeared relatively remote.
-- BERNAMA
Kenanga Research, in its report, "Economic Outlook 2009", released here
Tuesday, said any increase in development spending was expected to further
cushion the Malaysian economy from deepening global credit crisis.
"Assuming the multiplier effect of the November fiscal stimulus starts to
kick in during the second quarter of 2009 and the next stimulus package in April
would start to have an impact in the fourth quarter 2009, we believe it would
help support domestic demand growth and eventually cushion the impact," it said.
It said public expenditure was projected to expand by 9.4 percent this year,
up from an estimated 6.1 percent in 2008, which meant a contribution of 2.3
percentage points to the country's overall gross domestic product growth.
Kenaga said the impact of the packages, however, was premised on speedy
implementation of the projects and disbursements of payment to relevant economic
parties.
It said another plus for Malaysia was the fact that its overall financial
sector's ability to remain relatively unscathed following the US sub-prime debt
crisis.
"This may lessen the overall adverse impact on the economy," it said.
Kenanga said, however, the worst case scenario assumed a sharply
deteriorating global economy on rising deflationary risk while implementation of
domestic fiscal policy stumbled resulting in higher unemployment and sharply
lower domestic demand.
It said the domestic economy was expected to endure a technical recession in
the first half of 2009 which may delay an anticipated gradual recovery towards
year-end.
"The damaging effect of a technical recession in first half of 2009 will
drag down the potential growth of the country's economy for the whole of 2009 to
0.6 percent," it said.
Kenanga said for now, this assumption appeared relatively remote.
-- BERNAMA
