Call to simulate economy with new strategies

KUCHING: Senator Datuk Sim Kheng Hui has proposed that the government should issue coupons to the people if the current economic downturn takes a turn for the worst.

He said that though there was no cash assistance provided under the recent stimulus packages, the government could consider giving the coupons to encourage spending in future stimulus packages.

Sim, who is Sarawak United People’s Party (SUPP) secretary-general, pointed out that Malaysia’s exports have fallen by 27 per cent and he did not believe that the figures will improve in the short term.

Therefore, he said, the focus on the domestic market has increased and steps should be taken immediately to further stimulate the local economy with new strategies.

“To boost domestic demand, local consumers should be encouraged to spend wisely by buying local goods,” he said when proposing the coupons.

Sim also said in the Second Stimulus Package, Sarawak and Sabah were allocated RM1.2 billion to boost their economy. Out of that amount, he said RM230 million were for rural electricity and water supply.

But looking at the total value of the package, which is RM60 billion, he said the amount allocated to Sarawak and Sabah was not sufficient or fair.

“This is because the level of economy in Sarawak and Sabah is behind other states in the peninsula. Therefore, it is the hope of the people that in future stimulus packages more attention should be given to Sarawak and Sabah,” said Sim.

Sim also urged the federal government to pay greater attention to the deficit spending for the last 12 years in tackling the current economic downturn.

He said in parliament on Tuesday that though huge allocations for the economy such as the stimulus packages were necessary, the government must be careful and it must give consideration to their long term impact.

“Therefore, strengthening the financial position of our country is crucial at this moment, especially when our gross domestic product (GDP) is expected to contract to negative one per cent. This situation is putting tremendous pressure on our financial position,” he said.