Raising RM45b through bonds for financial aid, no drawback says Bagan MP

Lim Guan Eng who is the former finance minister has called for the government to raise an amount of RM45 billion through bonds which could help Malaysians in dealing with the economic impact of the latest movement control order or simply the MCO 3.0.

Bagan MP Lim Guan Eng said that following the extension of the MCO to June 28, the Perikatan Nasional (PN) government should start an economic stimulus package to help the Malaysian people save their jobs, businesses and livelihoods.

He added that Malaysians can only benefit, and Prime Minister Tan Sri Muhyiddin Yassin has nothing to lose by borrowing RM45 billion from the RM1.3 trillion domestic debt market to aid companies that are in the middle of financial trouble as well as to support the Malaysians in facing the adverse economic impact of the total lockdown.

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He said that the extension of the lockdown for another two weeks raises the need for another financial aid package especially in the middle of the Covid-19 situation where companies are distressed and the workers are displaced.

The DAP secretary-general pointed out that borrowing RM45 billion would alleviate the aftereffect of the MCO to the country which is estimated to be RM60 billion worth of losses.

He added that this supply of funds to help the economy should be for the direct benefit of the workers and businesses which comprises an automatic extension of the moratorium of bank loan repayments, work hiring incentives for two years, RM3.5 billion for the Health Ministry in order to boost its vaccination program and RM28 million in the form of financial grants.

Lim Guan Eng said that a regular serial financial aid is what the country needs in dealing with the current economic recession in efforts to save jobs, businesses and livelihood. Since a one-off aid won’t help in shielding the ordinary workers and the people against the economic impact of the lockdown.

He also mentioned that the financial should also cover the M40 group and not just the B40 group in order to sustain the M40 from falling into the B40 group.

“Just as in refusing to convene Parliament even though all MPs have been vaccinated, an extension of the two-week lockdown without any additional financial aid is irresponsible and unreasonable,” he said.