Monday, December 31, 2012

Chua: Government to continue splashing the cash despite drop in exports (Bank Rakyat, Agrobank, SME Bank & Exim Bank)

KUALA LUMPUR: The Government will not let up on its spending as it will help stimulate the domestic economy. MCA president Datuk Seri Dr Chua Soi Lek said boosting domestic income and consumption would help sustain the economy despite a downturn in exports and manufacturing.

Source from (The Star Online): http://thestar.com.my/news/story.asp?file=/2012/12/29/nation/12515521&sec=nation
Published: December 31, 2012

“It's the rising tide that lifts the boat because if the Malaysian economy is not doing well, everybody will be affected, not just the Chinese. If the general economic condition is good, everybody stands to benefit,” he said.

Dr Chua added that the Government would continue to play the role of a facilitator, including through the Economic Transformation Programme (ETP), which is aimed at increasing the disposable income of Malaysians.

“If there is no ETP, our economy would be like other economies that are affected by the global economic slowdown,” said Dr Chua, who is also a National Economic Council (NEC) member.

The ETP contains measures that will transform Malaysia into a high-income nation by 2020.

Funding, said Dr Chua, was another issue as most banks were conservative and wanted adequate collateral.

“It is especially so when there is economic uncertainty. People are more cautious,” he said.

In this respect, the SME Assistance Guarantee Scheme made available by SME Bank, Agrobank, Bank Rakyat and EXIM Bank would help small-and-medium businesses which face constraints in accessing financing.

Dr Chua said the construction and tourism sectors were also doing well.

“The construction sector has registered double-digit growth this year,” he said. “The tourism industry, too, has helped sustain economic growth.

“Today, we are the ninth most visited country in the world, with earnings of about RM1bil a week from tourist receipts.”

According to the World Bank's Doing Business Report 2013, Malaysia is the 12th most competitive economy in the world for doing business. This is a significant improvement from the 23rd position in 2010. - Bernama

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