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Economic experts praise the people of the prime minister muhyiddin yassin’s people’s caring economic boost package who gave home subsidies and deal with the issue of workers affected by pandemic Covid-19.
They specifically praise Rm10 billion budget to help b40 and M40. Families
Experts Also touch the wage subsidy program that provides Rm5. 9 billion.
The economic professor of the university of Monash Malaysia, poon wai ching said these two steps can increase domestic use and create multiplier effects for the economy.
” it’s a very good idea to ensure injections into the economic circular flow.
” these subsidies given by the government directly to users and companies will promote use and production.
” this subsidies will be a new spending of expenses to the market and due to its multiplier effect, it will lead to greater improvement in GDP,” he said to malaysiakini when contacted.
Poon says, one-off giveaway rm500 to e-travel drivers and civil servants will also affect multiplier.
Economic members, Laurence Todd, think that both steps are “step in the right direction” to protect the people who are easily affected.
” it’s obvious that they (Government) have heard the worries that were voiced from the past few days and decided to increase government expenditure with social protection,” he said.
Effective If well done
The economic professor of malaya rajah rasiah said he was amazed by the package but warns that the implementation of save is important.
” this is a big step – from a save financial approach, to a crisis solution injections that deal with a wider worker’s problem.
” a lot of governance needs to play an important role for limit leakage,” he said.
The same view was also suppressed by former Finance Minister II JOHARI ABDUL GHANI.
” this boost, if well done, can help defend the economy, work and protect the safety of the people from the current crisis,” he said to malaysiakini.
As part of the National Care Aid program that is expected to involve four million household income that is less than Rm4, 000 a month will get one-off payment rm1, 600.
While, 1.1 million income household between Rm4, 001 to rm 001 will receive Rm1, 000.
Three million single people who income less than Rm2, 000 a month will receive rm 000 while 400,000 single income between rm 001 to Rm4, 000 will receive rm500.
All assistance will be distributed in two stages – once in April and again in may.
Under the pay subsidy program, workers under Rm4, 000 will receive rm600 a month for three months.
It only applies to staff whose employer has suffered a loss of income more than 50 percent since 1 Jan, 2020.
The employer must make sure they don’t remove workers or order them to take a holiday without salary for three months after this program is implemented.
Muhyiddin said that the entire boost package will swallow a treat of Rm250 billion.
Johari estimated that the government needs to remove 8.8 percent or Rm22 billion.
” in terms of direct cash assistance from the government, it will count about Rm22 billion covering one-off payment to the people for National Care Assistance (Rm12 billion), salary subsidy (Rm6 billion), public assistance (Rm1. 7 billion) And the health care steps (Rm2 billion),” he said.
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