Ku Li: GDP not at 3.5%

Malaysiakini carries an interesting report where former Finance Minister Tengku Razaleigh Hamzah joins in the widely-held view that the GDP forecast of 3.5% growth for 2009 is too bullish. Ku Li reckons the Citigroup analysis, that GDP growth may be closer to 0.5%, is most accurate.

It is easier to extract relevant portions of the Malaysiakini report for your reference even though the full report contains far more of Ku Li's always-interesting views on the economy:

Earlier in his keynote address, Razaleigh, who is also Gua Musang MP said the government should “come to its senses and stop being in denial” about the global recession by laying bare the RM7 billion stimulus package and where the money is channelled to.

He said a “proper assessment” of the package should be made known even before having the stimulus package in the first place.

“The government should come out and start telling people the truth so that the people can prepare themselves to brace the economic crisis,” he said.

Razaleigh stressed at the press conference on the RM7 billion stimulus package and that the government should find ways and means to spend the money wisely.

“If you think RM7 billion is not worthwhile, then what is worthwhile? Can't you do a proper assessment of the situation? How deep is the recession? How much is really required? 

“If you say RM20 billion, alright. Find ways and means to spend that to help the country and the people, especially the low-income (earners),” he said.

Courtesy of walla you can read Citigroup and Deutsche Bank analyst reports by clicking on the names.

Blogger Another Brick in the Wall has the full text of Ku Li's speech at ASLI's 11th Malaysia Strategic Outlook Conference 2009 here.