PETALING JAYA: Former prime minister Najib Razak has called on the government to put aside its concerns about the country’s deficit and introduce another economic stimulus package to prevent a greater economic downturn.
He said the third wave of Covid-19 outbreaks had heaped heavy pressure on the economy, with the Klang Valley and Sabah being placed under a conditional movement control order (CMCO).
Although many were still allowed to go to work, and malls and restaurants could remain open, most Malaysians had been playing it safe by cutting back on going out and spending, he said.
“The situation is further complicated with the end of various aid measures and incentives in the Prihatin package, such as the loan moratorium, rental waiver and electricity discount.
“If the government only wants to take care of the country’s deficit and does not launch another Prihatin and economic stimulus package that is meaningful enough, then the slump will be worse than projected,” he said in a Facebook post today.
Najib pointed out that various projections made by Putrajaya and Bank Negara Malaysia for this year had been too optimistic and had been forced to be revised.
If no immediate action is taken, he said, the nation would need to brace itself for an economic downturn far worse than expected.
He said the new outbreaks in Western countries, with expectations of more cases in the winter, would see them go into lockdown soon, and impact the global economy and Malaysia’s exports.
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