Malaysia’s government unveiled plans yesterday to inject 10 billion ringgit (US$2.7 billion) to stimulate the sagging economy and avert a recession.
This will bring the total stimulus spending to 17 billion ringgit after a 7 billion ringgit package announced in November. But some economists said it might be insufficient to keep recession at bay.
The proposed second stimulus plan was tabled for its first reading in parliament by Deputy Finance Minister Kong Cho Ha.
MORE TO COME?
Kong said 5 billion ringgit would be used for development and the rest for operational expenses. The government may increase the amount later, he said, without elaborating.
Deputy Prime Minister Najib Razak will outline full details of the new stimulus package in parliament on March 10, which will include fiscal, monetary and other measures to boost the economy, officials said.
Many economists have predicted Malaysia’s trade-driven economy could plunge into a recession this year — its first since 1998.
The economy grew a dismal 0.1 percent in the fourth quarter of last year, bringing full-year growth to 4.6 percent, falling short of the official target of 5 percent.
The central bank has slashed interest rates three times since November and the government has indicated it may cut its growth forecast of 3.5 percent for this year amid the protracted turmoil in the global economy.
In a recent report, AmResearch estimated the government would need at least 40 billion ringgit in increased spending, or 5 percent of GDP, to prevent the economy from contracting this year. The manufacturing slump should continue until September, it said.
SINGAPORE STING
In related news, Singapore’s economy may contract by as much as 10 percent this year if exports continue to fall sharply, former prime minister Lee Kuan Yew (李光耀) said in remarks published yesterday.
If exports drop by another 30 percent to 40 percent in the second quarter, GDP will go down 10 percent, Lee said at a financial forum.
In January, Singapore’s exports declined by 35 percent year-on-year — the largest drop on record.
The government’s official projection is for the trade-dependent economy to contract between 2 percent and 5 percent this year after growing 1.1 percent last year.
A 10 percent contraction in GDP would be four times worse than in 2001, when the economy fell by 2.4 percent, Lee told the forum on Wednesday.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
CHINA: The activities come amid speculation that Beijing might launch military exercises in response to Lai’s recent visit to Pacific allies The Ministry of National Defense (MND) yesterday said China had nearly doubled the number of its warships operating around the nation in the previous 24 hours, ahead of what security sources expect would be a new round of war games. China’s military activities come amid speculation Beijing might organize military drills around the nation in response to President William Lai’s (賴清德) recent visit to Pacific allies, including stops in Hawaii and Guam, a US territory. Lai returned from the week-long trip on Friday night. Beijing has held two rounds of war games around Taiwan this year, and sends ships and military planes
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
RSS