The second economic stimulus package should focus more on micro measures

THE larger-than-expected 75 basis points cut in the overnight policy rate by Bank Negara Malaysia on Jan 21, plus the International Monetary Fund’s sharp downgrade of its 2009 global economic growth forecast to 0.5% on Jan 28 injected a heavy dose of reality into the present state and outlook of the global and local economies.

These developments also sparked a sense of urgency among policymakers as the Government mulls another economic stimulus package barely three months after the one announced back in November 2008. However, the impact of the earlier package has yet to be felt or seen on the ground.