Long-term effects of stimulus unclear


Economist Geoffrey Williams opined that the cash handout was a good initiative.

PETALING JAYA: The goodies announced by Prime Minister Datuk Seri Anwar Ibrahim, including the RM100 cash transfers to Malaysians above 18 years of age and the lowering of RON95 petrol price, will spur economic activity although the long-term effects remain uncertain, say economists.

They opined that the measures, while likely to be offset by tax reforms, subsidy rationalisation and revenue enhancement measures, might pose certain risks to the government’s fiscal position.

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