The Dandelions

.. the mutual admiration and bashing society.

RM7Billion…..Are You Stimulated Already?

Posted by ErnieJean on November 6, 2008

OK, I really don’t blame the Pakatan Rakyat’s MPs…….I’m pretty confused myself…….

This RM7billion Economic Stimulus Package thingy just announced by our new Finance Minister, is actually extra money derived from the savings of reduced fuel subsidy, not part of next year’s budget and hence, will need not be debated in Parliament because it’s at the prerogative of the Finance Minister ?????

But then again, doesn’t this extra savings belong to the rakyat too?

Don’t we have a say in how it should be spent?

And if there were no threats of recession looming over our heads, what was the government planning to do with those savings? Keep quiet and stash in some FD account?

Let’s refresh our memory with what some of these additional measures are :

1) 1.2 billion for construction of 15,000 low-cost and medium-cost housing.

I have a problemm with this one, in particular…..sounds really fishy.

When questioned why so much were allocated to the construction sector where it seemed to be favouring the contractors rather than majority of the nation, Najib replied

“….will provide benefits all the way down to the consumer. When we give to the construction sector, we build houses. We build low and medium cost houses, including 12,000 units under the Hardcore Poor Assistance Programme.

“Surely the hardcore poor will benefit and secondly, small contractors at district level will also benefit,” he said.

Erm, excuse me, but where are the poor going to get the funds to buy these houses which you say will help stimulate domestic spending? From the pathetic 3% cut from EPF contribution? How many hardcore poor folks who qualify for the low cost housing scheme actually have an EPF account in the first place?

As it is, there are already so many deserted low cost houses all over the country…….clearly a combination of the poor not being able to afford one in the first place and an indication of the government building without planning. So, wouldn’t it be better to allocate some of these funds to help the poor buy up the existing empty low cost units? 

And another thing, this 1.2billion is going to be parked under Syarikat Perumahan Negara Berhad and the Housing and Local Government Ministry. Anyone want to take a wild guess as to what the criterias are for contractors who want to bid and be awarded these projects? Crony UMNO contractors, perhaps? So, how does that benefit 99% of the nation when only a small group gets the bulk of the money eventually?

2) RM500million for repair works to upgrade and maintain existing police stations, living quarters, army camps and quarters.

Yea yea……..more like a “damage control” to repair the shitty and poorly constructed buildings by the crony contractors who should have been made to be responsible for their poor workmanship instead of allowing them to get away scot free.

3) RM600million for minor infrastructure works including maintenance to village roads, community halls, bridges.

Does that mean we’ll see badly re-surfaced tarred roads that will still need constant patching up, so as to make full use of the allocation?

By the way, I really hope that includes the patching up of the pothole-ridden Federal Highway, yar?

4) RM500million for repair and maintenance of public amenities such as roads, schools, hospitals, etc

5) RM500million to build and upgrade roads in rural areas, villages and agricultural farms, including Sabah and Sarawak.

Wait, you mean the other allocations did not include the East Malaysians!!???

Seriously, I just don’t see anything how this Economic Stimulus Package will benefit any of us, save for the Class F Contractors.

OK, in all fairness, I’m very sure this RM7billion will stimulate something, just not too sure it’s our economy. 😛

Wonder what or who will be the most stimulated……………..HHhhhhhmmmmmmmm


6 Responses to “RM7Billion…..Are You Stimulated Already?”

  1. peng said

    Don’t be stimulated too fast. Mr. Finance Minister just announced that the RM5 billion loan from EPF is to ‘stimulate’ Valuecap. If the ‘stimulation’ fails, this RM7 billion is ‘as cold as water’ lah! Need the funds to plug the hole.

  2. barbie said

    I am very much stimulated now..

    RM7b from fuel subsidy savings? Hey, before that, where is our RM40b saving from fuel subsidy not so long ago?

    You are right on many points, especially on the housing projects. In the first place, I doubt the poor and unpriviledged ones afford to buy a house, especially in this political climate. Banks are reluctant to give out loans, and these folks probably don’t have EPF to start with. And, what happened to the unsold units in many low cost housing projects?

    This so called multiplier effects or ‘trickle’ down approach, I can’t see how it can be done by awarding construction projects to few contractors. People on the street get jack shit from this ‘stimulus package’.

    Tell you what Najib..

    1st, get the public transportation fixed! Poor people dependent on public transportation system to move around.

    2nd, have more stringent enforcement on the unscruplous traders, especially after the revision of fuel price and reduction of commodities price. Worth to consider, get that lousy ACA to catch more fat cats, stealing money from the nation. That way we can get rid of the pests, and probably get back our money as well. (Oopss.. it may backfire.. this ACA suggestion)

    3rd, provide more funds for Small and Medium Entreprises, not that dying big fat cats! Let those big fat cats rot for all we care. Save the RM5bil bailout of worthless companies and give it to these SME business. This way, it will contribute more to the domestic economy and multiplier effects than your lousy ‘stimulus plan’.

    Do I get the Finance Minister job now?

  3. Fed Up said

    I bet the Income Tax folks will be stimulated too. With the cut in EPF deductions, some people may just find their taxable income increased….so it’s actually a win-win situation for the BN government, isnt’ it?

    And all those allocations for construction, I bet only 50% will actually go to the works…the rest will be lost in the maze of the usual high profit margins, middle man commission, under table commission, introduction commission and what nots 😡

  4. erniejean said

    Barbie, the joker did allocate some for transportation, RM500mil to be exact…….

    But then again, with all the previous allocations from the budgets announced from last few years, have we seen anything concrete being done? Is transportation any better? Where has all those other pledged allocations gone btw?

  5. barbie said

    Talking crap like allocating this and that, I can do that. Please come up with tangible plans. Just like sleepyhead’s corridors, so much the hoohaabaala of billions this and that, hell where are we going to the these billions ringgit? If I am not mistaken, up 1 thousand billions was ‘allocated’ for his magic corridors.

  6. cheekyme said

    Nowaday, even the poor hardcore hard to survive, makan pun tarak cukup and do you think they can buy those low cost houses? Their normal practice is like this, those crony’s family apply for low cost houses and resell it to public, especially after the houses are ready to stay in, the price will gone up, and they ll earn profit from there. Niamah!! stimulated your own cock lah!

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