KUALA LUMPUR, Feb 17 - Finance Minister Datuk Seri Najib Razak today admitted that the government’s projected 3.5 per cent economic growth for 2009 would have to be reviewed, given the growing economic uncertainty.
Najib, who is also deputy prime minister, answered a whopping 15 questions simultaneously on steps that the government was taking to address the economic crisis in Parliament today, reflecting concerns over whether Malaysia would fall into negative growth that has already blighted other economies such as the United States, United Kingdom, Japan and Singapore.
He said that despite taking into account the RM7 billion stimulus package that was announced on Nov 4 last year, “the projected 3.5 per cent growth no longer reflects the current status of the economy.”
“This trend was visible since Oct 2008, when national exports dropped by 2.6 per cent and then 4.9 and 14.9 per cent in following months,” he added.
The Industrial Production Index also saw a 2.8, 8.2 and 1.5 per cent downturn in that same period.
As such, Najib said he would be tabling a second stimulus package on March 10 but refused to reveal details at this point save that he “imagined it would be more than the first package.”
Najib also touched on retrenchments, which he said numbered 10,277 and another 4,207 under voluntary separation schemes in the period from Oct 2008 to Jan 2009.
However, in a separate question during the question-and-answer session, Opposition Leader Datuk Seri Anwar Ibrahim had insisted that the number of unemployed had breached the one million mark.
“Even though this fact is denied, Singapore itself has laid off 500,000 workers and 300,000 are from Malaysia,” he claimed.
DAP secretary-general Lim Guan Eng had also expressed his concern over the problem of unemployment.
The Bagan MP said that the government should offer unemployment benefits for those who have lost their jobs during the current economic slowdown.
“I know it has never been done before but for a period of three to six months, RM800 per month should be given to each person who is retrenched,” the Penang chief minister said.
He said that the amount paid out would not come to much, according to government statistics.
Lim said that due to under-reporting of retrenchment, it was fair to assume that 20,000 workers have been laid off.
“This will only come to RM1.6 million a month and over six months, about RM10 million.”
Show/Hide comments
Show/Hide comment form
