ID :
47421
Tue, 02/24/2009 - 19:23
Auther :
Shortlink :
https://oananews.org//node/47421
The shortlink copeid
GOVT CAN ACT AS BANKER
KUALA LUMPUR, Feb 24 (Bernama) -- The government can act as a banker by
giving out loans to the public to address the issue of banks limiting their
lending, said Tengku Dr Mahaleel Tengku Ariff, the independent, non-executive
director of Nestle (M) Bhd.
Mahaleel, who is also a visiting professor of the School of Management,
University Sains Malaysia, said the government could set a fund.
"There is no law to say that the government cannot be a banker," he told
reporters after presenting his paper at the seminar on "Riding the Global
Economic Storm: Tips for Malaysian Businesses" here Tuesday.
The one-day seminar was organised by the Exporters Club.
Mahaleel said the lending issue needed to be dealt with first so as to spur
economic activities, particularly in motor vehicle and construction industries.
He said the proposal to allow owners of cars that were 15 years or older to
claim a RM5,000 discount for the purchase of a new car was "a step" but it did
not address the core issue.
"The root problem is that banks are not lending and the people's buying
power or the ability to repay, has been reduced," said Mahaleel, who was former
group chief executive officer of national car company Proton Holdings Bhd.
International Trade and Industry Minister, Muhyiddin Yassin, had said the
proposal had been submitted to the Finance Ministry for consideration in its
mini-budget, which would be tabled in Parliament next month.
He said the move would create demand for new cars and help spur the
country's motor vehicle sector in the wake of the global economic crunch.
Mahaleel expected the mini-budget to be massive in order to "top-up" the
sources of funds that had been "losing" from foreign direct investment and
domestic investment.
"It now depends on the government to keep the economy growing.
"When you spend the money, you have to think clearly which sectors should
get the priority. If you put it in projects which do not have the multiplier
effects, than the effects will be minimal," he said.
He said motor vehicle and construction sectors should get priority as both
were "very very" important to create jobs.
"Times are bad. This is an extraordinary time.
"Therefore we have to adopt draconian breakthrough thinking. If not, I
don't think you can win at all," he said.
On how to increase the consumers' buying power, Mahaleel suggested giving
"toll holiday" for a year.
He said the government should also build more low-cost houses with
zero-interest payments.
- BERNAMA
giving out loans to the public to address the issue of banks limiting their
lending, said Tengku Dr Mahaleel Tengku Ariff, the independent, non-executive
director of Nestle (M) Bhd.
Mahaleel, who is also a visiting professor of the School of Management,
University Sains Malaysia, said the government could set a fund.
"There is no law to say that the government cannot be a banker," he told
reporters after presenting his paper at the seminar on "Riding the Global
Economic Storm: Tips for Malaysian Businesses" here Tuesday.
The one-day seminar was organised by the Exporters Club.
Mahaleel said the lending issue needed to be dealt with first so as to spur
economic activities, particularly in motor vehicle and construction industries.
He said the proposal to allow owners of cars that were 15 years or older to
claim a RM5,000 discount for the purchase of a new car was "a step" but it did
not address the core issue.
"The root problem is that banks are not lending and the people's buying
power or the ability to repay, has been reduced," said Mahaleel, who was former
group chief executive officer of national car company Proton Holdings Bhd.
International Trade and Industry Minister, Muhyiddin Yassin, had said the
proposal had been submitted to the Finance Ministry for consideration in its
mini-budget, which would be tabled in Parliament next month.
He said the move would create demand for new cars and help spur the
country's motor vehicle sector in the wake of the global economic crunch.
Mahaleel expected the mini-budget to be massive in order to "top-up" the
sources of funds that had been "losing" from foreign direct investment and
domestic investment.
"It now depends on the government to keep the economy growing.
"When you spend the money, you have to think clearly which sectors should
get the priority. If you put it in projects which do not have the multiplier
effects, than the effects will be minimal," he said.
He said motor vehicle and construction sectors should get priority as both
were "very very" important to create jobs.
"Times are bad. This is an extraordinary time.
"Therefore we have to adopt draconian breakthrough thinking. If not, I
don't think you can win at all," he said.
On how to increase the consumers' buying power, Mahaleel suggested giving
"toll holiday" for a year.
He said the government should also build more low-cost houses with
zero-interest payments.
- BERNAMA
