Tan Sri Azman Mokhtar, managing director, Khazanah Nasional Bhd
(The package) is sufficiently chunky to have an immediate and significant impact while the 80:20 (RM48b:RM12b) split between private sector/capacity building initiatives and social safety net measures is well-balanced and well-crafted.

For Khazanah and the companies in our stable, it will accelerate the implementation of investment plans in high economic multiplier, strategic, service-oriented sectors including telecommunications, leisure and tourism, technology (including ICT, creative industries and sustainable development or “green” technologies), life sciences, healthcare and agriculture.

The investments in these sectors in 2009 and 2010 by Khazanah and our major GLCs will total more than RM10 billion, with the potential to create an estimated 70,000 jobs by 2011.

Also worth noting that all these investment programmes involve projects that are already “shovel-ready” as they are the product of various detailed sector studies that Khazanah has undertaken in all these sectors along with work on specific investment zones such as Iskandar Malaysia.

Tan Sri Azman Hashim, chairman, Malaysian Investment Banking Association
The plan to issue syariah-compliant savings bonds will certainly help increase income and provide an additional savings instrument to the rakyat. The decision to provide an additional allocation to improve the facilities for the elderly, disabled and single mothers, indeed reflects the government’s commitment to ensure the well-being of the less fortunate groups.
  
The government’s plan to establish a financial guarantee institution to provide credit enhancement for companies to raise funds from the bond market is indeed timely. In this regard, RM15 billion worth of bonds are expected to be raised under this facility.

Expenses incurred on plant and machinery between March 10, 2009 and Dec 31, 2010 are eligible for claiming accelerated capital allowance. This will encourage companies to renovate and refurbish their premises.

The Association of Banks in Malaysia (ABM)
ABM will work closely with the individual member banks to make the relevant operational changes to put into effect the deferment of the repayment of housing loans for one year for the affected group as soon as possible.

The latest move is just one of a series of steps taken by member banks this year to alleviate the burden on the banking public in the midst of the current slowdown as well as put more disposable income into the public’s pockets.

The government’s incentive of withholding taxation of the interest income related to such deferment until such time interest is received is also welcomed.

Federation of Malaysian Manufacturers (FMM)
There were no specific measures identified to address the decline in exports and to stimulate domestic demand and consumption. The public should be informed of the progress in the implementation of the projects and government procurement of local goods and services.
 
The speedy implementation of projects and enhanced transparency in the procurement processes should also be extended to government-linked companies (GLCs) given their significant role in the stimulus package.

Consideration should also be given to assist all businesses with their existing loans. FMM hopes that any deferment of loans would not be regarded as defaults and referred to CCRIS and CTOS database.

The measure to allow for a company’s current year losses to be carried back to the previous year is a good measure.

However, the maximum amount of total losses of only up to RM100,000 should be further increased to be effective.

FMM hopes that the government would reconsider our proposals, especially with respect to measures to assist exporters in the face of declining exports and the suspension of Socso contributions. The doubling of the levy should be seriously re-considered.

Tan Sri William Cheng, president, Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM)
A very bold mini-budget which will benefit the rakyat with the proposed spending of an additional RM200 million on low-cost housing and tax relief on interest for housing loans.
 
The SMEs (small and medium-sized enterprises) will benefit from the Working Capital Guarantee Scheme and Restructuring Loan Guarantee Scheme but we hope that the Restructuring Loan Guarantee Scheme for the bigger companies will also grant them the same 80% guarantee like SMEs depending on the companies’ merits and requirements instead of 50%.
 
While we welcome the move to reduce the cost of doing business with the reduction in HRDF (human resource development fund)levy, we are disappointed that there is no further reduction in the gas and electricity prices that have gone up tremendously due to the increase in oil price in 2008.

With regard to the government’s efforts to increase Khazanah’s investment funds by RM10 billion, we would like to propose that RM5.4 billion be used to buy over the remaining stake in PLUS expressway ... which will enable the government to write off the loans within a period of about six years and reduce the toll.

Nik Mohd Hasyudeen Yusoff, president, Malaysian Institute of Accountants
The focus now should be on expediting spending, with appropriate control in place. The package is a broad-based initiative focusing on reducing the impact of the economic slowdown by assisting the private sector and building capacity for future competitiveness.

While additional fiscal spending for this year is only RM10 billion, initiatives such as the RM25 billion credit guarantee schemes will allow companies to have greater access to capital.

Datuk Seri Idris Jala, managing director, Malaysian Airline System Bhd 
(On the government’s announcement on the 50% rebate on the landing charges), this is wonderful news. It’s great that the government is stimulating demand in areas such as aviation that has a high multiplier effect on the country’s economy.
 
A study done by Khazanah and Bain Consulting shows that aviation has a multiplier effect of 12.5 to the Malaysian economy (ie every ringgit spent on aviation generates RM12.50 in the economy). This is positive for the economy.

Ronnie Lim, head of tax practice, Deloitte Malaysia
All the tax proposals have an impact of reducing businesses’ cash outflow through tax, and this would be helpful to them. It will also help money circulate in the economy.

There are two items related to tax which are particularly novel, which are the loss carry back and the accelerated capital allowance.

The loss carry back is really good, and judging by the amount of total losses allowed to be carried back, which is up to RM100,000, this is meant to benefit the SMEs, and this will be a real push for them. I hope this will become a permanent feature.

The accelerated capital allowance for expenses on renovation and refurbishment of business premises is also a business-friendly move, also expected to benefit SMEs.

Datuk Seri Leong Hoy Kum, group managing director, Mah Sing Group Bhd
We especially welcome the tax relief on interest paid on housing loans up to RM10,000 a year for three years. We look forward to further liberalisation of the Foreign Investment Committee (FIC) guidelines which will provide a boost for our sector.
 
We are also happy with Khazanah’s increased budget to invest in Iskandar Malaysia, as we have four projects there, as well as the expansion of the Penang International Airport which will benefit our Southbay Penang project which is just eight minutes from the airport.

Albert Tjoeng, Asia-Pacific Corporate Communications Manager, IATA 
The 50% rebate on landing charges is welcome relief. We appreciate the efforts of the government and Malaysia Airports Holdings Bhd to support the airline industry.
 
2009 is going to be one of the toughest years ever for international aviation. Airlines’ losses were at least US$5 billion (RM18.5 billion) in 2008, and projected to be US$2.5 billion this year. Asia-Pacific carriers alone will lose US$1.1 billion -- the largest losses among the regions. International passenger demand fell 5.6% in January -– the fifth consecutive month of contraction, while cargo demand has fallen off a cliff with a 23.2% decline in January.

Jeffrey Chew, director & CEO, OCBC Bank (Malaysia) Bhd
Sizeable enough to make a telling impact on the country’s economy. The total stimulus package is significant but only RM15 billion of the amount is being set aside for fiscal funding, which means this is more manageable for the government where budget deficit is concerned.

One of the schemes that we think would go a long way toward providing a much-needed lifeline to medium-sized businesses is the RM5 billion working capital guarantee scheme, which aims to assist viable companies gain access to working capital financing in their bid to stay afloat.
 
We know that there are a number of viable businesses out there that need just this kind of support to tide them over the initial difficulties brought about by the sharp drop in export demand. In effect, we expect that a few thousand medium-sized companies could be saved via this scheme.