Home: Economic Stimulus Package

(Speech of Second Economics Stimulus Package dated 10th March 2009)

Summary of RM60 B (implemented over two year - 2009 and 2010) package are as follow:

This package account for almost 9% of GDP and will result in increased in the Budget deficit from 4.8% to 7.6%.

The Package have four thrust together with the relevant allocation as shown below:

Thrust	RM B
1. Reducing Unemployment and Increasing Employment Opportunities	2
2. Easing the Burden of the Rakyat, in particular, the Vulnerable Groups	10
3. Assisting the Private Sector in Facing the Crisis	29
4. Building Capacity for the Future	19

The package will be implemented over two year in the following form

	Total RM B
Fiscal injection	15
Guarantee funds	25
Equity investments	10
Private finance initiative and off-budget projects	7
Tax incentives	3

fiscal injection

RM10 billion is allocated for 2009 and RM5 billion for 2010.

The RM10 billion for 2009 consists of RM5 billion for operating expenditure and RM5 billion for development expenditure.

Summary of various action under the relevant thrust:

FIRST THRUST: REDUCING UNEMPLOYMENT AND INCREASING EMPLOYMENT OPPORTUNITIES

Unemployment rate expected to increase to 4.5% (3.7% 2008)
Since Oct 2008,
- 25,000 worker retrenched
- 30,900 temporary laid-off
- 23900 tpaycuts
- 100,000 no overtime work

Strategy

SECOND THRUST: EASING THE BURDEN OF THE RAKYAT, IN PARTICULAR THE VULNERABLE GROUPS

Eliminate hardcore poverty by 2010
assist oil palm and rubber smallholders affected by declining commodity prices
- through re-planting, integrated farming and livestock breeding schemes
- in the events income of smallholders falling below poverty line income, assistance under the Social Safety Net Scheme will be extended to them
ensure prices of necessities and transport cost do not burden the rakyat
- RM674 M for necessities price subsidies (sugar, bread, wheat flour)
- RM480 M to curb increase in toll rates
total subsidies in 2009 RM27.9 M

Strategy

THIRD THRUST: ASSISTING THE PRIVATE SECTOR IN FACING THE CRISIS