Malaysia may need a third stimulus package should the US economy go into a relapse next year, according to the Malaysian Institute of Economic Research (Mier).
Executive director Prof Emeritus Datuk Dr Mohamed Ariff said in the event of a double dip recession in the US, Malaysia could use an additional RM8bil to pump prime the economy and “that is something we can afford to have.”
“We may need an additional RM8bil if there is going to be a double dip (recession) in the US and elsewhere,” he told reporters after the Mier National Economic Outlook Conference 2010-2011 yesterday.
- Do stimulus packages cause economic players to defer painful decisions?
- Do stimulus packages have the unintended effect of protecting enterprises that either (1) took too many risks, (2) made too many mistakes and/or (3) are inefficient?
- Will stimulus packages create more long-term problems than solve short-term ones?
A bit about "safe haven insurance" as a symptom
As if to underline the perception that "business as usual" is not a good thing we are witnessing the phenomenon of Malaysians of assorted ethnicity securing what I will term safe haven insurance by obtaining residential status in other jurisdictions.
Anyone who wishes to cast bilious remarks towards this category of Malaysians will only confirm the worst fears of these and many other Malaysians who only want a peaceful, progressive and prosperous Malaysia.
In this context, the challenge, therefore, is not to find a Thesaurus of invective but, rather, to remedy and remove the "push factors" that are causing Malaysian brains to consider leaving our fair shores by the droves. Mark the word "considering" because a Permanent Resident status is not a renunciation of citizenship, hence my invented aphorism, "safe haven insurance". The tide can be reversed if enough sincere effort is put into institutional and policy reforms.
And, let us not forget Hamlet's reminder about the insolence of office