Finance Minister: Malaysia's fiscal position is solid

  • Nation
  • Friday, 27 Mar 2020

PETALING JAYA: Liquidity in the market and a solid fiscal position are among the reasons why the government is able to announce a hefty stimulus package worth RM250bil, says Finance Minister Datuk Seri Zafrul Tengku Abdul Aziz.

"Our fiscal position is solid and its about agility," he said during a talk show on Astro Awani on Friday night (March 27) over the Perihatin Rakyat Economic Stimulus Package.

Zafrul said he expects to see companies adopting a "new thinking" to adapt to the changes following the impact of Covid-19 on businesses in general.

He said the global outbreak is somewhat responsible for a "forced industrial revolution" with companies making necessary changes.

"One sector which is already showing this new thinking is in education where schools and teachers can now teach online," he said.

He noted that the stimulus package had included free Internet access worth RM600mil during the movement control order period, beginning April 1.

Zafrul expressed confidence the economy would eventually rebound although he was initially concerned when assuming the post of Finance Minister only 17 days ago.

"The is an unprecedented crisis, not only for us, but also other nations and our solutions cannot be the 'business as usual' approach.

"One important way to revive the economy is to provide fiscal injection.

"We have tried monetary policies as what other countries had also done, but what is crucial now is a fiscal injection," he said.

He noted this approach can be seen from the stimulus package where almost RM25bil was in a form of a fiscal injection.

Earlier on Friday, Prime Minister Tan Sri Muhyiddin Yassin unveiled an economic stimulus package valued at RM250bil that will benefit all Malaysians.

From the amount, RM128bil will be used to protect the welfare of the people, RM100bil to support businesses including small and medium enterprises.

The government on Monday (March 23) had announced an allocation of RM600mil for the Health Ministry for the purchase of equipment and to hire contract staff, especially nurses.

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