TUN DAIM – INTERVIEW SESSION WITH MALAYSIAN INSIDER

The Malaysian Insider has learnt that the council of economic advisors could include corporate captains and heads of government-linked companies. Ten years ago, the financial crisis involved South Korea, Thailand, Malaysia and Indonesia. Today, the slowdown is being felt in the United States and Europe, and many countries are grappling with higher prices of commodities and inflation.

Tun Daim Zainuddin, the former finance minister, said in a recent interview that the Abdullah administration should borrow a page from 1997/1998 and put together a tackle the worsening global economic situation. He noted that the NEAC prepared an action plan after consulting 250 groups and individuals. "The management of the crisis was not on an ad hoc basis. We had to get people, including the Opposition parties involved, '' he told the Malaysian Business.

"I think the government should tell people the facts. Share with them the figures you have. Prepare for the worst. They will support the government if they are told the truth. But the government must have a plan on how to handle this tough problem…People want to know whether the government has options. They want to know if the government is on top of these problems. If they know, then they will have faith in the government and continue to support it, '' he said.

He also urged that government not to be too obsessed with the budget deficit. Since becoming the prime minister in October 2003, Datuk Seri Abdullah Ahmad Badawi has tried to rein in spending and has managed to reduce the deficit from a high of 5 per cent to 3.2 per cent. But there is a growing realization within government that it will be necessary to pump prime and create more economic activity in the country.

The only issue is the timing. Ministry of Finance officials believe that government should only resort to borrowing and pump priming early next year while their critics argue that the spending should begin now so that its effects will be felt in 12 months time when the global economic situation goes into a major tailspin.

Remarks.
Nahh...still don't believe ka?...so start savings as much as you can.