FMM: MEASURES NEED TO BE IMPLEMENT IMMEDIATELY

KUALA LUMPUR, March 11 (Bernama) -- The second stimulus package will achieve
its desired objectives if the measures are implemented immediately and the
projects identified are fast-tracked, said the Federation of Malaysian
Manufacturers (FMM).

In a statement here Tuesday, the FMM said the Project Management Unit (PMU)
of the Finance Ministry, in collaboration with relevant agencies, would need to
ensure that funds were disbursed quickly to the agencies so that the impact of
the stimulus package could be felt.

"FMM supports the use of electronic procurement to enhance transparency and
the preference given to local materials, products and services. The PMU should
closely monitor the implementation of these projects," it said.

It proposed that the private sector be given a more active and collaborative
role in expediting the implementation of some of the projects identified in the
stimulus package.

The FMM said that while the Working Capital Guarantee Scheme would be useful
in assisting small and medium enterprises in facing crisis in obtaining new
capital, consideration should also be given to assist all businesses with their
existing loans.

"Businesses should not be penalised when they subsequently apply for new
loans," it said.

In this respect, the FMM had recommended that financial institutions should
provide a two-year moratorium on repayment of principal by all borrowers but
interest payments continue to be serviced.

-- BERNAMA