Archive for the 'Economics' Category

With extreme social distancing in place, severe movements restriction and work disruption, it is unclear to me the role of economic stimulus. At the very least, its function to stimulate the economy is becoming irrelevant. There is little to stimulate with the supply-side frontier collapsing. Moreover, the earlier stimulus must have been rendered inadequate. It […]

How do you stimulate an economy during a period of intense social distancing or partial lockdown, with many workers are not working, a majority of productions offline and most movements restricted? It is the ultimate supply-side disruption. Malaysia has just announced a movement restriction order, which is an eventuality especially given the 3-week the government […]

There are criticisms that some of elements of the stimulus announced by former Prime Minister Mahathir Mohamad do not have immediate impacts, and so it should be replaced with more immediate responses. Responses like bigger cash transfer and bigger spending now. And the new Cabinet seems on course to enlarge the stimulus. I am here […]

Is this the right time to reintroduce the GST? No. It is definitely the wrong time to reintroduce the GST at the previous rate of 6%. Why is it the wrong time? Because in time when economic growth is dropping off the cliff, having GST at 6% is essentially having an austerity program. It will […]

Because this entry is long, I will say it upfront: the diversification of 2015-2018 at its core was due to: Collapse in crude oil price, with Brent dropping from around $110 per barrel in early 2015 to about $40 per barrel by late December 2015. Half of the reduction in petroleum share of government revenue […]

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