A SECOND stimulus package is necessary to keep the economy afloat following the blow dealt by Covid-19, said Xavier Jayakumar.

The former minister said the first RM20 billion package unveiled by Dr Mahathir Mohamad shortly before Perikatan Nasional took over must be boosted to stem the economic free-fall.

“I am afraid the first package alone may not suffice to spur a people-centric growth and encourage quality investments,” said Jayakumar, who held the water, land and natural resources portfolio in Dr Mahathir’s cabinet, in a Facebook post today.

He said Prime Minister Muhyiddin Yassin’s administration is slow to implement vital measures to protect the economy.

“They have decided to employ a wait-and-see attitude while our stock markets are going through a free-fall.

“At this juncture, it is very clear the present situation is not due to weak fundamentals, but rather, a systemic downturn in the global economic outlook.

“Seeing this happening, I believe the government should take the bull by the horns and make some bold decisions.”

The PKR vice-president urged Putrajaya to suspend the share market for two weeks and cap the ringgit’s value.

The government should also tap into the Treasury to bolster the market, and consider obtaining low-interest loans, such as samurai or panda bonds, to shore up its finances, he added.

“Rope in the Employees Provident Fund, Permodalan Nasional Bhd and Khazanah Nasional Bhd to start pumping funds into the stock market.”

He said the government should look into creating safety nets for employers and employees, particularly small and medium enterprises and the B40 group.

“The government could even look into setting up a consolidated fund or company to help fund the dire needs of the economy, both corporate and retail.” – March 20, 2020.