PUTRAJAYA’s latest stimulus package has nothing new to offer Malaysians and has been recycled from what is already offered in Budget 2021, said Lim Guan Eng.

In a press statement, the former finance minister said the aid package was a far cry from the RM45 billion economic stimulus package mooted by the opposition to overcome the current economic recession, and to save jobs and businesses.

“There is no new cash injection into the economy. (Prime Minister) Muhyiddin (Yassin) must be either ignorant or given wrong advice if he expects the impact of the MCO 2.0 to be less damaging to the economy, compared to that of MCO 1.0 imposed on 18 March 2020, (just because) many businesses are now allowed to operate,” said Lim.

“After MCO 1.0, the GDP growth plunged by a negative 17.1% in the second quarter of 2020. If the economy plunges by 2% in either the first or 2nd quarter for this year, this cannot be good for the Malaysian economy when, in relative terms, robust economic growth this year was expected,” he added.

On Monday, Muhyiddin announced a fifth economic stimulus package amounting to RM15 billion as most of the country enters a second week of strict movement curbs.

He said there are 22 initiatives under the Permai economic stimulus package to combat the Covid-19 epidemic, look after the people’s welfare, and ensure the survival of businesses.

Lim said without fresh fiscal injection into the economy under Permai, there is minimal impact on economic growth that can lift the economy out of the recession.

The Bagan MP also questioned why is there no rental relief or subsidy for businesses suffering without income under the Permai aid package.

“What can a RM15 billion aid package, with an estimated direct spending of a mere RM3.87 billion repurposed or redirected from existing spending priorities, (do to) help our economy to recover?”

This “old wine in new bottle” approach can be seen by Muhyiddin’s own admission that the funding required is not new money but reallocated from existing funds in Budget 2021.

“How does this Permai by Muhyiddin help to slow down retrenchment or business closures and save the economic livelihood of ordinary Malaysians?” he asked.

Yesterday, Muhyiddin said that the second movement-control order will not have as adverse an effect on the economy as the last March’s movement curbs.

The strong export sector and the recovery in global trade will continue to support economic growth, Muhyiddin said, adding that Budget 2021 and the economic stimulus packages will boost consumption while high impact projects will have a significant multiplier effect on economic recovery.

He said funds will be re-allocated according to current priorities and through more prudent spending to finance the RM15 billion Permai economic stimulus package. – January 19, 2021.