Dr Madeline Berma
KUCHING: An economic analyst has described the Sarawakku Sayang Special Assistance Package as a smart economic stimulus package that uses an expansionary fiscal policy to kickstart economic growth during the current economic slowdown.
Dr Madeline Berma said under the fiscal policy, the package spells out in detail efforts done to bridge the reduction in demand and increase aggregate demand in the state.
“Under the package, the state government has increased private consumption by raising disposable income through monthly washouts of RM250 for six months for the B40 group in addition to water and electricity bill discounts,” she told Utusan Borneo when contacted today.
She was commenting on the RM1.15 billion Sarawakku Sayang Special Assistance Package which was announced by Chief Minister Datuk Pattingi Abang Johari Tun Openg yesterday.
Madeline, who is also a fellow at the Academy of Sciences Malaysia, said the special aid package will increase investments by providing incentives, raising profits to encourage firms to increase product and reduce lay-offs.
She said this is because under the package, the state government has implemented waiver of permits and license fees; a 25 per cent discount on assessment rates; deferment of loan repayment for Small and Medium Industry Loan Scheme (SPIKS); a 30 per cent discount for land rent and deferment of land premiums.
“What is clear is that the special aid package is ‘rakyat-centric’.
“The government is even offering free face masks for the rakyat, financial incentives and food for Covid-19 frontliners,” she remarked.
The Human Rights Commission of Malaysia (Suhakam) Sarawak commissioner said the announcement of the Sarawakku Sayang Special Assistance Package is timely.
“The package clearly attempts to balance public health versus the economic consequences of the Covid-19 pandemic.”
She also said when Abang Johari announced the package, he issued a very clear message which also reflects competence.
“Clarity and competence gives confidence to the people.
“Covid-19 has an impact on ordinary people. Today, the problem is direct losses in income for people and businesses, being put on part-time work, or asked to take leave without pay.
“The package addresses the problems in the real economy, affected by coronavirus-related public health measures,” she said.