By FINTAN NG, LOONG TSE MIN, LEE KIAN SEONG and RACHAEL KAM

PETALING JAYA, Malaysia: The Government's "mini budget" must address issues of financing for businesses and provide incentives to boost private consumption, said various groups.

Representatives from various associations and industry groups who spoke to The Star said the added incentives, expected to be announced today, must boost consumer and investor confidence.

An initial RM10bil ($4.16bil) has already been announced as part of the mini budget but the people would be expecting a whole lot more.

The package is in addition to the first stimulus package of RM7bil announced last November.

Real Estate and Housing Developers' Association president Datuk Ng Seing Liong said the second stimulus package should look into putting more money into consumers' pockets.

This was especially for those in the lower income brackets because that would create a multiplier effect through spending, he said.

He said the three most important things on his list were relief from stamp duty, allowing housing loan interest to be offset against personal income tax and an allocation of at least RM100mil for the provision of grants to first-time homebuyers.

SMI Association of Malaysia president Chua Tiam Wee said the second stimulus package must be fast, broad-based and have direct multiplier effects.

"Most SMEs (small and medium enterprises) have reserves for only six months, thus the Government needs to provide funding fast to them and further encourage consumer spending.

"Otherwise, many SMEs would face retrenchment, downsizing or worse, closure."

Malay Chamber of Commerce president Syed Ali Mohamed Alattas said the Government has its hands full, "with many things to focus on."

Chief among these were job losses, access to financing and a drop in private consumption.

Associated Chinese Chambers of Commerce and Industry of Malaysia national council member Tan Kai Hee said besides lowering personal income tax, the Government could consider having a flexible tax regime for SMEs facing cashflow problems.

Malaysian Associated Indian Chamber of Commerce and Industry president Datuk K.K. Eswaran said the Government should look into restructuring loan schemes for SMEs, especially for those in the manufacturing sector, among other incentives.

Malaysian Automotive Association president Datuk Aishah Ahmad said it would like to see the continuation of the RM5,000 incentive for car buyers who want to replace their old cars as well as incentives to encourage banks to offer more hire-purchase loans. -The Star/ANN