Assess the Success of the Malaysia Fiscal Stimulus Packagein Response to the Economic Slow Down of 2009

The global financial crisis has been hit hard the Malaysia economy and givethe negative impact on overall economy and the labor market. According toWorld Bank Report 2009, Malaysian exports fell by 33.9 percent year-on-yearin January and by 35.9 percent in April 2009. Since the beginning of the crisisthe unemployment rate has increased compel the government to find the bestsolution in mitigating the impact of the financial crisis. Through the stimuluspackage introduced by the Malaysia Government, this policy has played a hugerole in promoting employment by giving the tax exemption for doing businessas well as stimulating the automobile industry by giving the rebate to buy a newcar. The government allocating over RM60 billion aims to increase theemployment through on job training programs organized by private sector andgovernment link companies (GLC) especially for graduate. Through thisprogram it able to create 50,000 vacant post and 13,000 contact posts in thepublic sector. Under the stimulus package, the government also allocate overRM19 billion to building the capacity for the future where RM2.4 billion hasbeen spent for telecommunication, RM250 million for airport to expand the lowcost carrier terminal (LCCT) to attract vacationers by adding the frequency ofairways operation. Needless to say, the strategies taken by Government underthe stimulus package able to drive Malaysia economy out from the greatrecession as hit by the neighboring countries.