FMT:
Pump RM150 billion cash into economy, says economist
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Money flow has been curtailed by the national shutdown, causing the economy to shrink, an expert says |
PETALING JAYA: An economist has called for drastic measures to ward off any economic recession because of the Covid-19 crisis, and suggested a RM150 billion direct cash injection into the economy.
The economist, Kameel Mydin Meera, said Malaysia might face a double recession this year, with millions losing their jobs.
To stave off the recession, he said the federal government could increase money supply from the central bank.
The government should inject RM150 billion of direct cash into the economy instead of the current measures in the RM250 billion stimulus package announced recently.
The economist, Kameel Mydin Meera, said Malaysia might face a double recession this year, with millions losing their jobs.
To stave off the recession, he said the federal government could increase money supply from the central bank.
The government should inject RM150 billion of direct cash into the economy instead of the current measures in the RM250 billion stimulus package announced recently.
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Kameel Mydin Meera |
He said an increase in the money supply would help businesses to keep factories and shops running, and put food on the table.
Kameel, a former dean of the Institute of Islamic Banking and Finance at the International Islamic University Malaysia cautioned the government against borrowing any money, especially from the International Monetary Fund (IMF) and other institutions.
He said such debts would be a burden on the future generation.
Kameel added the movement control order will cause companies to shut down as they do not have the money to run their operations.
“Since money has stopped moving, the economy will shrink due to the multiplier effect,” said Kameel, who now heads a consulting group.
In a recent report, the Malaysian Institute of Economic Research speculated that 2.4 million Malaysians may be jobless as GDP growth contracts to -2.9% for 2020.
Kameel, a former dean of the Institute of Islamic Banking and Finance at the International Islamic University Malaysia cautioned the government against borrowing any money, especially from the International Monetary Fund (IMF) and other institutions.
He said such debts would be a burden on the future generation.
Kameel added the movement control order will cause companies to shut down as they do not have the money to run their operations.
“Since money has stopped moving, the economy will shrink due to the multiplier effect,” said Kameel, who now heads a consulting group.
In a recent report, the Malaysian Institute of Economic Research speculated that 2.4 million Malaysians may be jobless as GDP growth contracts to -2.9% for 2020.
Considering the collapse in demand for oil and gas Petronas won't need to make much capital investment for the forseeable future. Government can raid its considerable cash reserves.
ReplyDeleteForget about the ratings, all oil majors are in the same boat.
The problem will be the optics of job losses at Petronas.
No, not recession, I think depression.
ReplyDelete150 billion divide by 61% of the total population of the country...how much will these lucky beneficiaries be getting each ? Celaka mesti potong hari ini jugak to qualify...cepat cepat la, fei ti la oi....jangan tertinggalan, ayuh ~
ReplyDeleteinject cash to who? i still dun understang how true is keynes multiplier.
ReplyDelete