KUALA LUMPUR: The RM35bil National Economic Recovery Plan (Penjana) announced by the government last week broadly meets expectations, according to independent and non-profit think tank Socio-Economic Research Centre (SERC).
Executive director Lee Heng Guie said the plan incorporated features of the Prihatin Economic Stimulus Package to empower the people, propel businesses and stimulate the economy.
“All in, the total fiscal stimulus package amounts to RM295bil or 21.1% of Gross Domestic Product (GDP), of which direct fiscal injection is RM45bil or 3.2% of GDP.
“The initiatives and measures are fairly broad-based and well-targeted to help stabilise domestic economic and business conditions as well as enable the economy to recover sustainably as it emerges from the pandemic, ” he told Bernama.
Lee expected domestic consumption and business capital spending to mend gradually, accompanied by a restoration of consumer confidence and business sentiment.
He pointed out that a significant “V-shaped” rebound in the domestic stock market from the lows could well serve as a barometer that investors are feeling somewhat sanguine about the prospects of domestic economic recovery.
“However, the jury is still out. The litmus test is the expiry of the six-month loan repayment moratorium in September, ” he said.
Lee pointed out that restoring domestic consumer and investor confidence would be the key to uplifting the domestic economic recovery, saying that the efforts must be anchored on keeping clear and consistent communication flows of the government’s economic stabilisation and stimulation policies, backed by macro-economic and political stability.
On stimulating the economy, he said sector-specific support is given to tourism, manufacturing, agriculture and food, the palm oil industry, automotive and property. — Bernama
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