Dr M announces RM20b stimulus: Extra BSH
Dr M unveiled economic stimulus plan
supposed to be announced by previous PH govt but delayed
slew of measures including cash aid and incentives to cushion uncertainties
1) RM600 one-off payment to taxi drivers, tourist bus, tourist guides, trishaw drivers
2) RM400 allowance for doctors / medical personnel directly involved in Covid-19
3) RM200 for immigration and related frontline staff
4) Bantuan Sara Hidup (BSH) payment for May moved to March 2020
5) additional RM100 paid to BSH recipients in May 2020, additional RM50 in e-wallet
4) personal income tax relief RM1,000 for domestic tourism
6) RM100 voucher per person for domestic tourism
(OSTB : 1 - 6 above is not economic stimulus. This is welfare.
Exactly how many people are involved? Cash payouts will cause price inflation and neutralise the economic stimulus. And why the focus on tourism only? They are not the only industry hit by the corona virus. All businesses have been badly affected.)
Exactly how many people are involved? Cash payouts will cause price inflation and neutralise the economic stimulus. And why the focus on tourism only? They are not the only industry hit by the corona virus. All businesses have been badly affected.)
7) minimum EPF contribution 7% April 1 - Dec 31 (RM10b in consumers' hands)
GDP expected to range between 3.2% - 4.2%
fiscal deficit to increase from 3.2% to 3.4%
(OSTB : The latest projections say the GDP growth this year will be 2% - 3% ?? But you must tolak inflation. Say inflation is 4% - 5% this means real GDP can SHRINK to NEGATIVE 1% - 3%. WE ARE GOING TO DIE.)
1) Deferment of monthly income tax instalment for tourism.
2) 15% discount in monthly electricity bill for hotels etc
3) HRDF levy exemption for travel-related companies
4) Exemption of 6% tax for hotels from March until Aug 2020.
5) RM2b special facility for SMEs at 3.75% interest by BNM
6) Malaysia Airport Holdings Berhad rebates on rental at airports
7) RM100m matching grant to HRDF to fund 40,000 employees from tourism
(OSTB : Tourism, tourism, tourism? Hello what about the rest of the economy? Everyone is suffering. Not just the tourism industry.)
8) RM50m to subsidise short courses in digital skills for 100,000 M'sians
9) Employment Insurance Scheme will increase claimable training cost from RM4,000 to RM6,000 for affected sectors plus RM30 daily training allowance for trainees.
10) Guidelines limiting the use of hotels by government agencies will be relaxed.
11) Bank Negara to provide RM1b agro-food facility at 3.75%
12) RM10m for Fama to provide food storage facilities to reduce food prices
(OSTB : The RM1 billion can go to waste with no increase in food productivity. Where and how exactly will Bank Negara target this RM1.0 billion? Jangan pula orang ambil duit pi kahwin bini muda, pi beli kereta, etc. Have such facilities resulted in any increase in food productivity before?
Give RM10 million to FAMA?
What for?
You mean all this while FAMA has no food storage facilities?
What for?
You mean all this while FAMA has no food storage facilities?
RM10 million for food storage facilities in 13 states from Perlis to Sabah?
That is an average of RM769,000 for each state.
What can you do with RM769,000?
How much does one refrigerated lorry cost? How many lorries do you need in say Pahang? FIVE lorries? 50 lorries? For the whole of Pahang? Again this is just buta money that will go to waste. Nothing will be achieved.)
13) RM1,000 grants to 10,000 local entrepreneurs to promote e-commerce platform
14) RM20m to MDEC to transform Pusat Internet Desa
(OSTB : That is a total of RM30 million. Pusat Internet Desa? Untuk main video game ke? This will all most likely go to waste with little or no productivity increase. An extra RM30 million pumped into the economy with no extra increase in production of goods and services. That means this will cause RM30 million worth of inflation in the economy. )
15) Relaxation of financial procedures in 2020 to expedite implementation of projects.
16) Promote quality investment in solar, fibre and TNB - related projects
(OSTB : If "promote" means giving TNB money then this is more bullshit. TNB is a monopoly. They make BILLIONS in profit. They have just spent RM800 million to build a new office complex in Bangsar which includes a RM40 million Balai Islam. Why do you need to give TNB more taxpayers money? Do read on.)
17) Listing fees by SC and Bursa waived for a year for listing
18) BNM RM300m facility for SME automation and digitisation at 3.75%
19) Accelerated capital allowances over 2 yr period on equipment including ICT
20) Tax deduction RM300,000 on renovation and refurbishment cost for companies
21) Import duty and sales tax exemption on equipment used in ports for three years
(OSTB : Ports? What is so special about the ports? What about the rest of the economy? All the big ports are owned by Syed Mokhtar and that Indian guy. They are already billionaires. Why give the billionaires import duty and sales tax exemption?
Do you seriously expect them to REDUCE their port charges? They will only become richer.
At least get a written commitment from the ports that in return for waiving import duties and sales taxes the ports must LOWER their port handling charges for exporters and importers. Then the economy will also benefit.
You might be stupid but they are not stupid. Ya Allah, kenapa lah pemimpin ini dunggu sangat?)
Do you seriously expect them to REDUCE their port charges? They will only become richer.
At least get a written commitment from the ports that in return for waiving import duties and sales taxes the ports must LOWER their port handling charges for exporters and importers. Then the economy will also benefit.
You might be stupid but they are not stupid. Ya Allah, kenapa lah pemimpin ini dunggu sangat?)
My suggestions:
Rule No 1 - Cash handouts using taxpayers funds can kill the economy if the cash handouts do not generate productivity.
'Kill the economy' means if the cash handouts DO NOT ADD to national productivity. They will cause price inflation instead which will just kill off the economic stimulus.
This is what I see here. Spending millions of cash for useless short courses, two day and three day training programs, giving billionaires tax exemptions etc is just plain stupid and a waste of public funds.
An economic stimulus (even without cash handouts) will work best if it :
1. reduces the costs in the economy
2. increases the productivity in the economy
Here are some suggestions from me:
1. Postpone the Minimum Wage for 3 years.
Please declare a moratorium on Minimum Wages for 3 years.
Ok this means ONLY NEW employees need not be paid minimum wages.
The new employees can be paid whatever is agreed between the employer and the employee. RM500, RM800, RM1000, RM2000, RM10,000, RM50,000 or whatever. Let the employer and the employee come to their own agreement.
This will instantly help adjust the cost of doing business to reflect the real business conditions in the country. The economy will respond immediately. Empoyment will increase. Productivity will increase. Dr Mahathir and PM8 pleeeeeeeeease listen carefully.
2. 15% Standard Import Duties for THREE years only.
FOR THREE YEARS impose one standard import duty of 15% on ALL imports.
All imports meaning cars, motorbikes, trucks, buses, tractors, all imports from China, Japan, kimchi from Korea, spices from India, sheep skin rugs from Australia, IPhones from USA etc. Everything. One standard import duty not exceeding 15%. FOR THREE YEARS.
This will really boost our entrepot business, manufacture of intermediate goods, lower the prices of all imported parts and components, lower the cost of living etc.
Plus a standard 15% import duty (including for cigarettes) will kill off all smuggling activity. Who is going to risk being arrested for smuggling just to avoid paying 15% import duty?
A standard 15% import duty can actually INCREASE the government's tax base and tax revenues. Think about that for a moment.
3. Plant idle land to increase food production.
In Malaysia there are vast areas of agri land that remains idle? They are not planted. The young people have left for the cities and the old people cannot work anymore.
To increase food production, give a cash payout to PROFESSIONAL FARMERS OF ALL RACES (INDIVIDUALS AND COMAPNIES) to enter into Joint Ventures with land owners with idle land to plant cash food crops on their idle land. Cash food crops meaning paddy, corn, vegetables, tomatoes, long beans, carrots, cabbage, kangkong etc. Not oil palm, not rubber or coconuts, not durian trees or any other fruit trees etc.
In Malaysia there are vast areas of agri land that remains idle? They are not planted. The young people have left for the cities and the old people cannot work anymore.
To increase food production, give a cash payout to PROFESSIONAL FARMERS OF ALL RACES (INDIVIDUALS AND COMAPNIES) to enter into Joint Ventures with land owners with idle land to plant cash food crops on their idle land. Cash food crops meaning paddy, corn, vegetables, tomatoes, long beans, carrots, cabbage, kangkong etc. Not oil palm, not rubber or coconuts, not durian trees or any other fruit trees etc.
The cash allowance SHOULD BE CALCULATED BY THE WEIGHT OF OUTPUT (lets say per tonne or per kilogram) AND PAID POST HARVEST (AFTER HARVEST).
There must be increased productivity in the economy before the cash incentive is paid.
Repeat : There must be increased productivity in the economy before the cash incentive is paid.
Cheating must be monitored. (Take BEFORE and AFTER pictures lah.)
This will increase the output of food and also provide some income (rent for the idle land) to the old people in the kampongs who cannot work their lands anymore.
This will increase the output of food and also provide some income (rent for the idle land) to the old people in the kampongs who cannot work their lands anymore.
4. Reduce energy costs.
Strongly encourage the import and use of SOLAR PANELS for home electricity production.
Lets target to put a SOLAR PANEL on every rooftop in Malaysia asap.
Malaysia enjoys 365 days sunshine.
Yet our home electricity production (SOLAR) is effectively zero.
Why?
Answer : TNB monopoly.
A complete, plug and play solar panel now costs less than RM10,000.
This Solar Panel from Alibaba costs only US 24 to 32 cents per Watt.
(Equal to RM1.00 to RM1.34 per Watt).
So 5000 watts = RM5000 to RM6,700.
5000 Watts (5 kW) should be enough for a small home.
(Maybe not including airconditioning).
Please no need for 'permission' from TNB (TNB is a competitor - apa ke punya bodoh if you need approval from TNB to fix a solar panel on your roof? Of course TNB will say cannot.
AND ABOLISH ANY AND ALL APs TO IMPORT SOLAR PANELS !!
This will save the country from having to build multi billion Ringgit power plants that use up space, pollute the environment, etc.
AND ABOLISH ANY AND ALL APs TO IMPORT SOLAR PANELS !!
This will save the country from having to build multi billion Ringgit power plants that use up space, pollute the environment, etc.
Anyway be careful with cash handouts.
Cash handouts that DO NOT result in productivity increases will cause price inflation.
Price inflation will neutralise the economic stimulus.
It is much better if the economic stimulus LOWERS THE COSTS in the economy.
- Lowers the cost of living for consumers
- Lower costs of doing business
- Lower costs of imports etc.
Which should give rise to increased productivity in the economy.
If you have more ideas please add to the list.
To reduce costs and increase productivity in the economy.
Taken from OutSyed The Box
Don't believe me? Just go to Alibaba.com. Here is just one example :
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