PUTRAJAYA will not resort to drastic moves like taking hefty loans to provide special stimulus packages for vulnerable groups and micro, small and medium enterprises (MSMEs), Economy Minister Rafizi Ramli told the Dewan Rakyat today.

He said the government will look at alternative methods to improve the economy without having to increase national debt.

“If we (the government) are to provide a stimulus package worth some RM200-RM300 billion, then we need to take a loan at a higher international interest rate.

“This burden will then be passed on to the national debt, which will be inherited by the government and the future generations,” Rafizi told parliament today during Ministers’ Question Time.

Rafizi was responding to Muhyiddin Yassin’s (Pagoh-PN), who asked if the cabinet would be able to provide some sort of aid package to help vulnerable groups and MSMEs.

Muhyiddin suggested additional assistance, saying he is worried about the country’s ailing economy, which could lead to unemployment and loss of income.

Rafizi refuted this by saying data from economic experts do not support the Pagoh lawmaker’s claims.

“Based on projections and the current performance of the economy, Malaysia will not be worse than when Pagoh was prime minister, God willing,” Rafizi responded with a swipe at Muhyiddin.

This met loud jeers from the opposition.

Rafizi said the government is already paying some RM40 billion to service debt, including debts partially contributed by Muhyiddin’s government.

He said based on sizes of the gross domestic product, all sectors but agriculture have recovered.

“In an economic environment that has already passed the endemic phase, and to ensure we deal with international challenges as best as possible, is to balance between (fund) injections and aid by strengthening the country’s fiscal situation.

“There is a way that we can restore the economy of vulnerable groups and MSMEs without us going into debt and increasing the burden as practised by the PN government before,” Rafizi said.

During Muhyiddin’s administration, the government announced eight stimulus or assistance packages amounting to RM530 billion in 2020 and 2021. – March 22, 2023.