‘PM ADDRESSING KEY CONCERNS’
Experts say initiatives have provided impetus for growth
ECONOMISTS are optimistic about Prime Minister Datuk Seri Najib Razak’s economic vision for the country as it addresses the rakyat’s key concerns and measures needed to develop the country.
They said the government’s initiatives and measures had brought about structural change and provided impetus for economic growth.
“The Economic Transformation Programme, Goods and Services Tax (GST), subsidy rationalisation, targeted social assistance programmes such as 1Malaysia People’s Aid (BR1M) and minimum wage implementation are some of the major initiatives that create a spillover impacts on the economy and directly benefit the people,” Malaysian Industrial Development Finance Bhd (MIDF) research chief economist Dr Kamaruddin Mohd Nor said yesterday.
Kamaruddin expects the 2018 Budget, to be announced by Najib tomorrow, will be inclusive, practical and prudent.
Najib, in his blog post titled “My Economic Vision for Malaysia” yesterday, said the 2018 Budget was shaped by his goal to correct the problems of the past and make the country more competitive.
He also said the budget was designed to protect the weak and ensure fairness for every segment of society.
Former Transport Ministry secretary-general Tan Sri Dr Ramon Navaratnam said the prime minister had underlined some major weaknesses that the communities and non-governmental organisations (NGOs) had been raising from time to time.
“We look forward with enthusiasm and high expectations to see what he (Najib) has to say (when tabling the 2018 Budget).
“We want fairness for every segment of society so that no one is left out,” he said.
Ramon pointed out that there were many poor people who were suffering from the rising cost of living and therer were problems meeting their needs for housing, healthcare and education.
“He (Najib) has hit the right note but I hope it comes out well in the budget,” he said, adding that the prime minister was aware of the problems, and had identified the weaknesses.
Ramon believed Najib would propose changes in the budget, reflecting his true concern for the rakyat.
“The proof of the pudding is in the eating. We’ll be waiting patiently for Friday,” he said.
Ramon said the budget should be across the board, not only in education, but also in healthcare and transport, as well as income tax incentives.
“The structural change through the implementation of the new economic model would help to reduce the cost of living and support the country in going forward.
“At the same time, he (Najib) must address issues which are not purely economic, like corruption, polarisation, extremism and bigotry. He must clamp down more harshly on extremist views because he has been very quiet,” he said.
Sunway University Business School economics professor Dr Yeah Kim Leng said the budget
was aimed at addressing the concerns of at least 80 per cent of the population, particularly those in the B40 and M40 groups.
B40 refers to the bottom 40 per cent of households with a monthly income of RM3,900 and below. M40 refers to the middle 40 per cent with a household income of between RM3,860 and RM8,319.
“Big structural reforms are needed in the country to sustain the growth momentum, especially in boosting economic upgrading in moving towards a high value economy that is able to realise the high-income target together with achieving the inclusivity and sustainability goals,” he said.
Yeah added that Najib had undertaken structural reforms such as the introduction of GST and rationalisation of subsidy to strengthen public finances.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said government leaders had to relay the achievements to the man on the street more frequently and in an easy-to-understand narrative.
“More often than not, these statistics are not appreciated by the general public primarily because they cannot relate it to their own experience. Hence, the government needs to formulate an effective communication strategy so that it will reach the masses more effectively.
“Perhaps we need a town hall session in each constituency and the Economic Planning Unit and other authorities need to brief the rakyat on the state of the economy and government policy. But it has to be simplified and easy to understand and not include too much technical jargon that would result in people losing interest.”