Budget 2018 should focus on innovative policies – KKCCCI
KOTA KINABALU: Budget 2018 should focus on fair and innovative policies that will drive sustainable development and prosperity for Malaysia, said Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) president Datuk Michael Lui.
He said the spending plan, probably being a pre-election budget, was geared towards policies that benefit the people, such as MyBeautiful New Homes (MyBNHomes) scheme in Sabah and Sarawak, micro financing, healthcare, hiring of foreign domestic helpers directly from nine selected countries and employment opportunities.
“We opine that the budget should not focus solely on policies that benefit the people, but also on fair and innovative policies that will steer Malaysia towards sustainable development and prosperity.”
Lui said the development expenditure for this year has been maintained at RM46 billion for the following year, despite an increase of 5.4 per cent from RM265.9 billion in Budget 2017 to RM280.25 billion in Budget 2018.
“There is no increase in development budget to stimulate economic growth.”
He said the allocation of RM200 million for small and medium enterprises (SMEs) for training programmes, grants and soft loans and RM50 million as loans for SMEs through Koperasi Jayadiri Malaysia Berhad (Kojadi) were insufficient to effectively assist the SMEs.
Meanwhile, Lui said the RM1 billion provided as loans to companies with 70 per cent guaranteed by the government under Skim Jaminan Pembiayaan Perniagaan (SJPP) to enable SMEs to automate production processes and reduce employment of foreign workers was a positive move.
Lui believed that Sabahan farmers would benefit from the RM500 million allocated to improve irrigation infrastructure and upgrade plantation roads; RM140 million allocation for developing and replanting of oil palm; and RM6.5 billion to assist farmers, fishermen, smallholders and rubber tappers.
On another note, he said the Initial Savings Fund of RM200 through Permodalan Nasional Berhad's (PNB) Unit Trust Scheme for every Malaysian baby born from 1 January 2018 to 2022; Book Voucher Assistance of RM250 each for students in higher learning institutions and Form Six; 1Malaysia People's Aid (BR1M) of RM1,200 to eligible recipients, special payment of RM1,500 to public servants and other financial aid would not be able to ease the high living costs, given that the inflation rate stood at 4.3 per cent.
“The inflation will dampen purchasing power, which in turn affect the economic growth of all sectors.”
KKCCCI also expressed disappointment for the reduction of two percentage points of income tax only for the M40 group.
He said corporate and individual income tax rates should both be lowered to balance the taxation rates.
Additionally, Lui said tax relief, such as medical expenses of parents, medical expenses on serious diseases and education fees of children should be revised accordingly in view of the rising costs of living, education and medical treatments.
The chamber also opined that the allocation for infrastructure development in Sabah was insufficient.
Budget 2018 allocates RM500 million for the construction of rural roads in Sabah and Sarawak; RM10 million to implement 1Azam programme in Sabah; RM2 billion for Pan Borneo Highway; RM620 million for electricity supply in Sabah and Sarawak; and RM1 billion is for Malaysia Communications and Multimedia Commission to develop communication infrastructures and broadband facilities in Sabah and Sarawak.