KUALA LUMPUR: The government needs to consider introducing voucher and credit as alternative ways to stimulate the economy beyond a conventional method of direct cash injection that can hurt its coffer and increase debt level, said a don.
Putra Business School business development manager Associate Professor Dr Ahmed Razman Abdul Latiff said during the pandemic, almost all countries take the same economic approach of pumping money directly into the market to increase the liquidity and revitalise the economy, or a measure known as helicopter money or quantitative easing.
However, he believes there are many other methods available for Malaysia to implement that allows the exchange of products and services and not necessarily by borrowings or cash injections.
“Each country has its own ways of dealing with the pandemic… but Malaysia should think outside of the box, do we really need to borrow in order to create this helicopter money?
“We can create a sovereign money, which can be used to kick start the economy while at the same time will not put us deeper in debt. This is something we need to think of,” he said on Bernama TV’s Midday Update programme on Tuesday.
Putrajaya has rolled out six stimulus packages worth a total of RM380 billion.
The latest relief package called Pemerkasa Plus worth RM40 billion saw the extension of targeted loan moratorium, 50 per cent lowered rate on loan repayment over six months, higher Bantuan Prihatin Rakyat payments, one-off financial aid for taxi, bus and e-hailing drivers, extension of tax exemption for motor vehicles, among others.
Pemerkasa Plus involves RM5 billion in direct fiscal injection. – Bernama