Dr M to handle economic stimulus package, says Lim

PETALING JAYA: Interim Prime Minister Tun Dr Mahathir Mohamad will decide on the timing of the announcement of the economic stimulus package to mitigate the impact of the Covid-19 outbreak, says former Finance Minister Lim Guan Eng (pic).

In a statement yesterday, Lim said Dr Mahathir informed him that he would take over the stimulus package that Lim and his ministry had been working on.

“I met Dr Mahathir in his office to discuss political developments in the country.

“Among the matters discussed was the package of economic plans to overcome the impact of Covid-19, which was (initially) scheduled to be announced by Dr Mahathir on Feb 27.

“The Finance Ministry and I finalised the economic stimulus package on Feb 23 (Lim’s last day as Finance Minister) to be presented to the Prime Minister on Feb 24.

“However, Dr Mahathir resigned on Feb 24. The stimulus package will now be announced by him at a date which will be decided later, ” said Lim, who is also Bagan MP and secretary-general of DAP.

On Monday, Dr Mahathir announced his shock resignation and was appointed as the interim prime minister.

He has yet to form an interim Cabinet.

On Feb 14, Lim said the stimulus package was neither a new budget nor part of Budget 2020 measures.

“Instead, assistance will be given to the affected sectors to allow the economy to emerge as whole as possible and benefit from the expected economic rebound post-Covid-19, ” said Lim in a statement then.

On Feb 12, Bank Negara Malaysia announced that Malaysia had posted its worst economic growth rate since the 2007-08 global financial crisis.

The Malaysian economy was badly hit in the fourth quarter of 2019 as it grew by 3.6%, the lowest level since the third quarter of 2009.

Due to Covid-19, the central bank said the outlook for the first quarter of 2020 had turned more cautious amid the worsening outbreak that could further dampen the economy.

However, Bank Negara governor Datuk Nor Shamsiah Mohd Yunus said the central bank had ample policy ammunition to deal with the growth slowdown as she expects further sluggishness to be felt in the first quarter of this year due to Covid-19.