PUTRAJAYA, Jan 20 - A second economic stimulus package will be rolled out soon to assist businesses and retrenched workers, Deputy Prime Minister Datuk Seri Najib Razak announced today, acknowledging the reality of impending economic gloom which may be worse than expected.
However, Najib admitted that none of the projects and initiatives announced in the first stimulus package had gotten off the ground yet, adding that these would have to be implemented first before launching a second package.
Najib, who is also the second finance minister, told reporters that the second package will have a different focus from that of the first RM7 billion package announced late last year.
He said the second package will include assistance to companies in ailing industries that are on the verge of retrenching their workers.
"We have to launch the first package and get it off the ground first, then we will come in with the second package.
"The features and focus might be slightly different. For example, how do we deal with companies that might be on the verge of retrenching their workers, what kind of assistance can the government give," he said, insisting the stimulus package would not take the form of bailouts but assistance.
Najib also said that discussions were currently being held with various parties to obtain input on how the second package could be implemented.
He added that at this point, the government has already informed the Employees' Provident Fund (EPF) to develop certain plots of valuable land in Kuala Lumpur.
However, Najib refused to delve into when or how large this second injection would be, merely stating that it would be "not too long" from now and that he would need to "look into our reserves and see."
Najib also said that a "Projects Management Unit" had been set up to ensure government agencies and ministries speed up the implementation of projects from funds allocated under the first package, which was announced by the DPM late last year.
"The first package is already fully allocated and now it is time to implement. If all of it is spent this year, it will result in a 1 per cent growth in GDP," he said, clarifying that this was part of the 3.5 per cent growth forecast by the government.
Najib added that while analysts differed in whether there is a recession or not, the second stimulus would ensure that Malaysia does not dip into recession.
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Errr... ... What happened to the first, or to be precise, WHERE is the first package? so fast enter UMNOputra's pocket? wah, BN really must go!