Prime Minister Datuk Seri Dr Mahathir Mohamad is back from his much needed vacation and all eyes are o­n the much talked about 'stimulus package' which is expected to be unveiled to spearhead further economic growth and development after recent anxieties over the war o­n Iraq and the Sars epidemic.

The introduction of this stimulus package is no doubt to uplift, bolster and safeguard our economy, in the wake of various international happenings that have a direct and indirect impact o­n our shores. The government's move is timely and sends a clear signal thatit will do everything within its power to assist players and dependents o­n the Malaysian economy.

However, it must be pointed out that due care and concern must be embedded in the process to prevent and avoid any major spending spree under this transfusion.

The last time we had a similar package, allegations arose o­n the sheer imprudence and lack of objectivity in spending patterns.

Therefore, it is crucial this time around that safeguards be put in place. We cannot deny that our development efforts have chalked up high deficits, and due care must be undertaken.

I was made to understand that the stimulus package was originally due to be announced in late March but was postponed to early April after the military strike o­n Iraq.

It has now been put off for an "indefinite period" as the deadly Severe Acute Respiratory Syndrome (Sars), which sparked a global health scare, takes a further toll o­n all major world economies.

This move is no doubt o­ne of calculated prudence and must be lauded. With Sars in the picture it is pertinent that certain adjustments have to be made to sectors that are especially hard-hit, such as tourism.

As a consumer advocate monitoring the issue, I hope that the financial package will contain specific measures expected to have an immediate impact o­n the economy, while laying the foundation for more stable growth in the medium and long-term. I also hope that the measures introduced will speed up existing projects and focus o­n sustaining consumer spending.

However, these efforts may be inadequate if there are no measures to further liberalise the economy and cut red tape to boost competitiveness and woo foreign investors.

The corporate sector must be made more competitive and draw more foreign investment to sustain its growth. The government should also restructure and deregulate the economy in its upcoming package to counter stiff competition from China and regional economies.

One would also caution the government against over-stretching its finances as its budget deficit for this year had ballooned to 5.6 per cent of gross domestic product (GDP), from 5.2 per cent in 2002. As such, multi billion ringgit projects that depend o­n foreign borrowing must be subjected to rigorous examination and review.

For the record, it must be pointed out that two years ago, the government spent RM7.3 billion to 'pump prime' the economy amid the US slowdown and the Sept 11 terrorist attacks in the US. It prevented recession and prompted an anaemic 0.4 percent growth.

The good news is that we are not o­n the brink of a recession now, so there is no need to break or pressurise the banks to push growth.

However, the federal government needs to be extremely prudent and it will certainly help if certain state governments, noted for their lavish spending - are advised by both the Prime Minister and Deputy Premier Datuk Seri Abdullah Ahmad Badawi - to be of extremely thrifty for the long term interest of the nation.