Step up Spending to Boost economy, Putrajaya Urged

PETALING JAYA: The federal government should consider increasing its spending and reducing taxes as a way to counter a possible slowdown in the economy, according to a business lecturer.

Yeah Kim Leng of Sunway University Business School said recent reports of a drop in capital imports, the largest since 2009, suggested that there had been a slowdown in business investment and expansion.

Speaking to FMT, Yeah said a prolonged slowdown in investment would result in lower output and reduced business activities, he said.

The Bloomberg news agency reported that there had been a 31% drop in imports of capital goods, such as machinery and equipment used to produce goods and services, while imports of consumption goods fell by 12.8% compared to the same period last year.

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