First it was RM7 billion. Then rumours mentioned RM35 billion.

Today, DPM najib reveals RM60 billion worth stimulus package which is nearly 9% of the GDP. The package will be implemented over two years. Some details:

• RM15 billion in fiscal injection
• RM25 billion in guarantee funds
• RM10 billion in equity investment
• RM7 billion for private finance initiative and off-budget projects
• RM 3 billion in tax initiatives

The expenditure is aimed at:

1. Reducing unemployment, increasing employment – RM2 billion
2. Easing the burden of the rakyat, especially vulnerable groups – RM10 billion
3. Assisting the private sector – RM29 billion
4. Building capacity for the future – RM19 billion

FIRST THRUST: REDUCING UNEMPLOYMENT AND INCREASING EMPLOYMENT OPPORTUNITIES

To create a total of 163,000 training and job placement opportunities in the public and private sectors. 6 steps to be taken as below:

• First: Increase the number of participants under the Special Training and Re-Training Programmes for retrenched workers and the Dual National Training Scheme to enhance skills of those currently employed;
• Second: Increase the number of training programmes with the cooperation of industries and related companies, such as in electrical and electronics, welding, robotics and construction. In addition, more industrial and technical skills training will be conducted by Skills Training Centres in all states for 10,000 trainees.
• Third: Provide on-the-job training for unemployed graduates, in the financial sector by the Securities Commission and Bank Negara Malaysia for a period of 2 years. A total of 1,000 unemployed graduates will participate in this programme;
• Fourth: Provide 2,000 training opportunities and job placements in GLCs, particularly in the services sector, such as outsourcing, aviation, utilities, health and creative multimedia;
• Fifth: Perbadanan Usahawan Nasional Berhad (PUNB) will implement attachment training programmes for graduates and those with skills certificates. Participants will be placed in PUNB investee companies for a period of 6 months to a year. On completion of training, qualified participants will receive financial assistance from Projek Pembangunan Usahawan Dalam Bidang Peruncitan (PROSPER) to venture into business. PUNB targets 2,000 graduates to be trained under the attachment programme;
• and Sixth:Further strengthen the Program Tunas Mekar to encourage graduates to venture into business activities and add value to existing small and mediun enterprises (SMEs). A total of 500 graduates and SMEs will participate in the programme.

To establish 22 JobsMalaysia Centres and upgrade 109 existing centres to facilitate access for workers and employers to obtain job placements, career counselling and information on training opportunities.

Employers who employ workers retrenched from July 1 2008 be given double tax deduction on the amount of remuneration paid. Only those employing from March 10 this year to Dec 31, 2010 is able to claim so.

The government proposes that existing tax exemption of RM6,000 given on retrenchment benefits be increased to RM10,000 for each completed years of service.

Government to recruit 63,000 staff to fill vacancies and serve as contract officers in various government agencies as follows:

1. Expedite recruitment for RM50,000 vacant posts at the support and professional level in the federal civil service;
2. Create additional 13,000 jobs for officers on a contract basis in government agencies, as follows:

(i) Recruit 4,000 officers on short-term service with minimum SPM qualification and monthly salary of RM1,200;

(ii) Recruit 1,000 graduates as school teachers on contract basis with monthly salary of RM2,000;

(iii) Recruit a total of 800 contract workers to strengthen the implementation of Program Cari under the Women, Family and Community Development ministry for a period of six months to a year;

(iv) Recruit 1,000 public health assistants on contract basis in local authorities for control and prevention of infectious diseases;

(v) Recruit 4,500 contract officers as enumerators in the Department of Statistics to carry out population census; and

(vi) Recruit 1,700 nurses and health support staff in the Health ministry.

To encourage more Malaysians to pursue Masters (10,000 places) and PhD (500 places) by financing tuition fees and research grants up to RM20,000 for student pursuing PhDs locally and RM10,000 for those taking Masters programme. This includes all local IPTAs, UNITEN, MMU, and UTP. MOHE will be in charge of running the show. And yeah, its open for all Malaysians, based on merit.

Levy on foreign workers will be doubled for all sectors except construction, plantation and for domestic maids; the levy will be paid by the employers and not by the workers.

SECOND THRUST: EASING THE BURDEN OF THE RAKYAT, IN PARTICULAR THE VULNERABLE GROUPS

A sum of RM674 million in subsidies will be allocated to avert price increases of necessities, such as sugar, bread and wheat flour. Without these subsidies, the price of sugar will increase RM0.47 per kilogramme, wheat flour RM0.60 per kilogramme, and a 400-gramme loaf of bread by RM0.26. The Government will also provide RM480 million to ensure that toll rates are not increased. With these measures, the Government will allocate a sum of RM27.9 billion for subsidies in 2009

the Government proposes that house buyers be given tax relief on interest paid on housing loans up to RM10,000 a year for 3 years.

the Government will issue syariah-compliant Savings Bonds amounting to RM5 billion this year. The bond will have a maturity of three years, with an annual return of 5% and will be paid quarterly to bond holders. Apart fron providing an additional savings instrument to the rakyat, the bonds will provide holders with additional income. Bondholders will receive additional income of RM250 million a year. The bonds are available to all citizens aged 21 and above, with a minimum investment of RM1,000 and a maximum of RM50,000.

Allocation of RM1.95 billion is provided to build and improve facilities in 752 schools, particularly in rural areas as well as Sabah and Sarawak. A sum of RM300 million from this allocation will be used to improve facilities in government-aided religious schools, national-type Chinese and Tamil schools as well as mission schools.

Banking institutions have agreed that retrenched workers defer the repayment of their housing loans for one year.

THIRD THRUST: ASSISTING THE PRIVATE SECTOR IN FACING THE CRISIS

the Government will assist in the auto-scrapping scheme for PROTON and PERODUA. Under the scheme, a discount of RM5,000 will be given to car owners, who trade in their cars, which are at least 10 years old, for the purchase of new PROTON or PERODUA cars. The Government will finance part of the discount borne by PROTON or PERODUA