MANY economists see the government incorporating an interest rate cut in its proposed economic package to give the economy a stronger boost, given the growing impact of the Severe Acute Respiratory Syndrome (SARS) outbreak.
Tourist arrivals and hotel occupancy rates in Malaysia have dropped significantly since the outbreak of SARS, and the slump in those sectors, together with a still anaemic manufacturing sector, now threatens the official forecast of 4.5% gross domestic product (GDP) growth for this year.