Does Malaysian RM7 Billion Stimulus Package Relevant?

There are many needs to be concern for. Currently, there are many problems occurred whether in the world economy or Malaysian Economy itself. The government still have to do a lot of discussions to solve the problems such as inflation, financial crisis, unemployment and many more. The question here is how the plan was to be set up which will be followed by great action.

As we can say there must be transparency in dealing with where the 'package' have been transfered to. What i have been said is within the current issue in Malaysia where Deputy Prime Minister, Datuk Seri Najib Razak which is newly elected Finance Minister introduce 'Stimulus Package RM7 Billion' which he said it will help Malaysian company to survive within Financial Crisis.

Again, the 'package' can be questionable as does it really help the economy to prosperous as what Malaysia in time of leadership under Tun Dr Mahathir Mohamad when facing Asian Financial Crisi 1997-1998. For current crisis, which is not only involve Asian market but overall market in the world which is start at 'superpower' level (United State). There also many companies ; such as Lehman Brothers, AIG and currently Citigroup- in US who is went on bankrupt and have serious problems internally also externally. Bail-out program that want to do by US government to help the companies in problem was previously rejected. This is because there will be effected others.

Back to the issue inside Malaysia, the issue of of stimulus package have been gotten many responds by economist and also parliamentary people. When Tun Dr. Mahathir asked about the 'package' he said "Its maybe can help to boost up the market and economy but it maybe just in a while". This statement is correct because the problem today is within the monetary system not just financial. Whether the 'package' is relevant or not is dependable. Furthermore, the stimulus package has not been debatable yet in the parliament.

Malaysia itself is a trade country. There are too much dependency on foreigners to which is within FDI- Foreign Direct Investment. There, we must focused on this issue as to solve the problem today's crisis. The statement that Malaysia will be stable and do not effected by the crisis is wrong because conditionally Malaysia is a trade country. Malaysia have too much dependency on US. Furthermore, FDI became first element for Malaysia development. Currently, there was a UN Conference on Trade and Development World Investment Report 2008 said that Malaysia’s FDI outflow had touched RM38bil compared with its RM29bil inflow, resulting in the country experiencing a net outflow of RM9bil.

This show the impact will be higher on the next year if there are no great action to solve the problem. Serious discussion have to be made between all expert. Not only stimulus package need to be concern because it will effect other sectors when one sector to be helped. This is a normal situation. It will be relevant if other sector also to be considered. If not, the crisis will lead Malaysia to crisis maybe to further recession. Serious research also need to be conducted.