I wrote this on my personal Facebook today.
My friends asked me to openly share my thoughts on the stimulus package.
I struggle for a while, thinking whether should I open this part of my life to people I don’t know and don’t really know me for who I am. 🤷🏻♂️
In fact, I’m will be opening myself to verbal attacks as this is a sensitive topic.
After thinking one whole afternoon, alright, what the heck, let me just share my unfiltered thoughts on this stimulus.
Bear in mind I am not an economist nor do I pretend to be one.
I am just a Malaysian who has multiple companies hiring multiple staffs and helping them put food on the table for their families. And this is my viewpoint as an employer.
Someone asked me what are my thoughts on the RM250 Billion Stimulus Package.
My instant response is, “WHAT STIMULUS???”
I mean seriously, what stimulus is there when you throw money to the lower tier of the workforce?
This is the exact stimulus presented by the one who was not voted to be PM.
🔹RM1600 for 4 million households earning 21 and earning <RM2000
🔹RM1000 for 1.1 million households earning RM4000 – RM8000
🔹RM500 for 400,000 singles aged 21 with an income of RM2000-RM4000
🔹One-off payment of RM200 in May for students at higher education institutions
🔹RM60 million (oh goodness gracious me!!) for one-off payments of RM500 for 120,000 Grab/Mycar/Maxim and whatever e-hailing drivers
In total, that’s a lot of FREE MONEY!
Hey PM, did I see my calendar wrongly?
Yesterday date was 27 March 2020, not 25th December! 🤦🏻♂️
And no, I didn’t see Santa Claus appearing yet!
Oh on top of all that FREE MONEY given to people, he also decided to give RM500 one-off payment for 1.5 million public servants and 850,000 government retirees.
Please don’t get me wrong.
I have nothing against government servants, they are the backbone of this country. 💪🏻
But giving them another RM500 when their bloody rice bowl is secured is to what end?
Buy new handphone?
Buy new hand bag?
Buy new watch?
Let me tell you, the unemployment that is and will going to rise WILL NOT come from the government sector!
It will come from the bloody private sector where because of this crisis, their rice bowl is not secured! Bloody hell!
And why are private sector workers rice bowl not secure?
Because the 6000 over SMEs in this country are facing an unprecedented crisis which is exacerbated by the MCO.
MCO means no business.
No business means NO CASHFLOW!
Bear in mind that SMEs comprises 98% of corporations and employ 65% of our workforce. Most of them only have 2-3 months left of cash flow to survive.
After that, what next?
Job losses are expected to be more than 2 million!
What about Mak Kiah the goreng pisang micro traders?!?!
They do not employ a lot of people.
At most 1 or 2.
This Covid-19 will not cause their business to bankrupt.
They will be back on their feet as soon as the MCO is over.
People will still go to their stalls to buy goreng pisang.
However, when SME goes bankrupt, many employees will lose their jobs!
The RM250 BILLION stimulus package is just another pre-election oh-please-love-me-more kind of Budget! Oh what a travesty this is!
Do you know there are 2 stages to handling an economy in crisis?
SAFEGUARD EMPLOYMENT AND LIVELIHOODS
SUPER CHARGE THE ECONOMIC ACTIVITY
The stimulus cannot even safeguard employment and livelihoods?
Still don’t understand me?
Let me ask you this question now.
🔴Would you rather have your job now with your salary intact?
🔴Or would you rather get some candies from the government but LOSE YOUR JOB because your employer just do not have enough cashflow to sustain the business to employ you?
The problem with this crisis is that SMEs do not have the cashflow to sustain paying everyone’s salary for the next few months with the MCO in effect
Even if the MCO is lifted by April 15th, consumer confidence will still not go back to normal as if Covid-19 didn’t happen. Most consumers will still be cautious! And the brutal truth is this, SMEs have already suffered revenue drops of about 60-80%.
Furthermore, government loans of RM100 billion do not really benefit SMEs. It should be in the form of grants or forgivable loans. (Credit to Mark Chua)
Datuk Garry Chua in his morning interview with Property Insight also mentioned that only an estimated 40% of SMEs have loans.
As such, not all SME will benefit from the 6 month loan moratorium.
By the way, even big strong companies like AirAsia are in trouble now. Extend this MCO another 1 month, compounded by poor consumer confidence and demand shock to the hotel industry, even Marriott and Hilton will fall on their knees. 😖
Muafakat National….who cares.
Whatever you call yourself, your move will win you votes in the short term but crush the entire country’s SME in the long term.
America just had the single largest surge of unemployment to 3.3 million this month thanks to the useless president. Well, we Malaysia is not so far behind at this rate moving forwards.
The only thing government did right was the loan deferment.
This I will give it to them. 👍🏻👍🏻👍🏻
The rest, are same old bullshit nonsense from the Barisan 2.0 government. 👎🏻👎🏻👎🏻
Vote buying tactics.
Unprecedented times calls for unprecedented actions, and unfortunately this policy is not unprecedented enough to wrest this country away from sinking into the abyss. I rest my case. Mic drop. Ciao.
Source : Dr Victor Gan 房地产价值法 #propertydoctor