Do we need a third stimulus package?



MALAYSIANS rejoiced when the government announced the RM250 billion economic stimulus package two weeks ago.

But already economists are discussing – is it enough?

This is because the threat of Covid-19 all over the world is still not over.

The world financial markets and economies are in a shambles and they will have a negative spillover impact on Malaysia.

The International Monetary Fund expects an economic recession for world economies.

The World Bank expects Malaysia to register negative growth this year.

Bank Negara Malaysia expects the gross domestic product to register as low as 1 percent this year.

Although Prime Minister Tan Sri Muhyiddin Yassin had already rolled out the economic package, it would take a few weeks before it can reach its target.

In the meantime, the small and medium scale enterprises are registering zero revenues due to the movement control order.

The lockdown could be extended from April 14 to April 30.

Some health experts say to really eradicate Covid-19, Malaysia should be in lockdown until June.

With so many uncertainties facing the country and the possibility that the economic slowdown could last for 2 years, it is safe to say that a third economic package is in order.

The financial aid can affect the country’s economy but it does not matter at this point in time.

It is about saving lives for now and saving the people.


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