Don T Hold Back On Spending Mp Urges Putrajaya


Young people taking part in a skills development programme. An MP says greater efforts must be taken to support employment. (Facebook pic)PETALING JAYA: An opposition MP has urged Putrajaya not to hold back on spending, saying only the government could “save the economy” from the effects of the national shutdown and restrictions to combat the Covid-19 pandemic
“At this point in time, don’t worry about debt,” said Klang MP Charles Santiago who is also an economist
The DAP man said the government had been following the “same playbook” in dealing with an economic crisis as it did in 1998 and 2009 during the Asian and Global financial crises but the government response was not enough
“The situation is worse this time because domestic demand and crude oil prices are low. So the government needs to pump money in the economy in a big way. The government’s initiatives to support employment and drive domestic demand need to be increased and extended.”Klang MP Charles Santiago is an economist by training.Santiago called for an extension until March of initiatives to support businesses and employment such as the Wage Subsidy Programme and Employment Retention Programme, to give companies “time to breathe” as business activities resume
“The government must work out a comprehensive roadmap to show how we will get out of this economic crisis,” he said and called for the opposition and the government to work together
Santiago noted that cooperation might be difficult because of current political animosity but it was needed because of the unprecedented scale of the problem. “When did we last hear of 800,000 Malaysians losing their jobs?” he said
Santiago said agricultural production should be given priority, to bring down food prices and ensure food security. The government must invest heavily in health and social welfare on a sustainable basis, such as the Employment Insurance System
He said many employers were upset when the scheme was introduced but it was now helping thousands of employers, workers and the government
Sustained incomes would provide the people with sufficient funds to spend, thus boosting domestic spending. The scale of unemployment was unclear, and “could well be higher” than believed. It could also increase once loan moratoriums end in September. - FMT

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