Tan Sri Mohd Sidek Hassan

At Your ServiceInterestingly today, similar counter cyclical measures are viewed by many as theappropriate approach to reinvigorate their ailing economies. Being a proactiveand responsible Government, we introduced a RM7bil stimulus package inNovember 2008 to mitigate the impact of the global financial crisis. Monetarypolicy complemented the fiscal stance. Among other measures, the OvernightPolicy Rate and the Statutory Reserve Requirement were reduced to lower thecost of financing and financial intermediation.With most advanced economies in recession and the outlook for emerging anddeveloping economies deteriorating rapidly, the Government introduced a morecomprehensive stimulus package amounting to RM60bil in March.The second package primarily focused on training and job creation, easing theburden of the rakyat, sustaining credit flows to support private sector activities andbuilding capacity for the future. The impact of the stimulus packages is expectedto be fully felt in the second half of 2009.Green shoots have emerged to indicatethe possibility of recovery in global demandand with these encouraging signs, thereis emerging consensus that the globaldownturn will stabilise in 2009 and recovernext year.However, given the extent and severity of the decline in global demand since thesecond quarter of 2008 as well as its lagged impact on the Malaysian economy,growth is expected to contract 4% to 5% in 2009 before registering mild growthin 2010. The Government is mindful of the difficulties faced by the rakyat in thesechallenging times.We have provided training opportunities and allowances for retrenched workers.We continue to extend assistance to students, the disabled, the elderly and thepoor as well as provide subsidies on basic food items like sugar, flour and bread.It is often said that we should not waste a crisis as it also opens up opportunitiesto restructure and move towards a more liberalised and high income economy.22