The federal government has set a timeline:

IPOH, June 13 (Bernama) — The impact of the first and second stimulus packages totalling RM67 billion announced by the government, can only be seen in the third and fourth quarters of this year, said Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah.

He said the ministries involved in the implementation have offered 43,681 contracts for RM6.95 billion in the first stimulus package and 708,011 contracts worth RM10 billion for the second.

“A total of RM15 billion is fiscal expenditure in the second stimulus package.But only RM10 billion is being utilised for this year with the remainder to be spent in 2010. [Impact Of Stimulus Package To Be Seen Third And Fourth Quarters Of This Year. Bernama. June 13 2009]

I will be watching the external demand side and I will bet that recovery will be fueled by improved external more than anything else.

Already at the moment, there are signs that the market is ahead of the intended effect of additional government spending amounting to RM21 billion. Also, nevermind that the fiscal stimuli have already failed to meet earlier set deadline.

One Response to “[2008] Of it is a race, then”

  1. […] in the first place. Yes, the government did say that the effect of the stimulus will only be felt in the third quarter. The point is however that it is likely that we will only notice the stimulus money in action only […]

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