Liberal economic policy to improve confidence

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the Federal Government to implement liberal economic policy, avoiding extremist statements such as on ownership of shares and housing quota. A fair and just policy promotes confidence.

Confidence is one of the factors in the strength of the Malaysian economy. As we look forward to a better management of our credit flow and unemployment, we have to ensure that there are no extremist statements that undermine confidence.

Dr Tan made the call on 16 November, 2008 at the Pahang DAP Convention in Temerloh.

The global financial tsunami affects Malaysia, causing a slowdown. From the 2009 national budget of RM 207.9 billion, the Federal Government implements a RM 7 billion stimulus package to increase consumer spending. But, in the current atmosphere, will it be possible to collect revenue of RM 161.6 billion? Will the budget deficit be more than 4.8%. Will the 2009 deficit be 3.6%. The current expenditure is estimated as RM 154.2 billion and the development expenditure RM 53.7 billion.

Germany, Japan and Singapore are having recession. We are watching Malaysia, USA and UK. China has introduced a RMB 4,000 billion stimulus package because her growth will be slower.
What happens to Malaysia? The Federal Government denies that there will be recession. The Governor of Bank Negara Tan Sri Zeti believes that this country will not go into recession, the value of Ringgit may go up and there may be adjustment of interest rate. She forecast the growth next year at 3.5%. Some forecast at 1.9%.

As confidence is important in the economy, we do not want to hear extremist statements. The Federal Government must adopt a liberal policy, being fair to all.

Dr Tan Seng Giaw