‘BUDGET OF INCLUSION’

ethos, which he stressed are based on three priorities whose roots are steeped in Islamic governance principles and

(purpose and objectives of syariah), whose ultimate objective, according to the great 12th century Persian philosopher Al-Ghazali, is to promote human welfare and safeguard faith, life, lineage, intellect and property of the rakyat (nation) and citizens.

These priorities are — government’s responsibility of providing vital necessities to the citizenry that are essential for the establishment of welfare, and which, if ignored, could lead to

(chaos and disorder); — matters relating to easing the burden of the people and providing them a comfortable life through the provision of goods and services that facilitate life or remove hardship; and

— the policy of enrichment or beautification of life through the availability of luxurious needs (for instance, gourmet food), on the basis that syariah not only puts comfort into human life, but also beautifies it.

The Syariah Requirement Framework, (SRF) based on the above priorities, stressed Najib, is the new canvass on which the budget has been crafted and which “will chart the course of the Malaysian nation for the next 30 years… prospering an inclusive economy balancing between the worldly and hereafter, for the wellbeing of the rakyat, towards the TN50 aspiration”.

There is also the small matter of the 14th General Election, which has to be held before May 2018. The opposition is in disarray and the informal coalition, Pakatan Harapan, which puts together strange bedfellows — DAP, PKR, Parti Pribumi Bersatu Malaysia — is in serious danger of not living up to its sobriquet as the Alternative Front (Barisan Alternatif) and bickering over who would be prime minister in the highly unlikely event it wins GE14. Najib, leader of the ruling Barisan Nasional coalition, may be tempted to call an election sooner than later.

Najib’s Budget SRF is a masterstroke. It not only marginalises Pas’ perennial and uninformed claim that it is the gatekeeper of Islam in Malaysia and gives the rakyat a moral compass, but also reinforces Najib’s stated policy that Malaysia practises the principle of cooperation with all nations and conducts its affairs both at home and abroad “in the context of the (moderation) principle”.

Not surprisingly, but perhaps coincidentally, Najib reiterated the government’s support for Malaysia’s growing Islamic finance industry, which, according to the budget documents, today accounts for a 28.8 per cent market share of the total banking sector in the country.

“Malaysia,” he confirmed in his budget speech, “is renowned as the leader in Islamic finance. As such, to strengthen Malaysia’s position as a comprehensive and competitive financial centre, the government will continue with (various) measures”.

These include a string of tax incentives and grants to further enhance the SRI market, including income tax exemption for recipients of the special Green SRI Sukuk grant, totalling RM6 million; an additional RM1 billion to the syariah-compliant SME financing scheme, increasing the fund size to RM2.5 billion, and a subsidy of two per cent on profit earned to ease the costs of financing; and, an allocation of RM82 million for the development of halal industries and products.

Furthermore, Putrajaya is keen on leveraging Malaysia’s leading role in the Sukuk market and as a pioneer in innovative Islamic capital market products. All this, according to Najib, means that Malaysia is well placed to remain ahead in Islamic finance.