Budget 2019 must address basic needs, says Asli
PETALING JAYA: The Asian Strategy and Leadership Institute (Asli) expects Budget 2019 to restructure socio-economic and financial policies.
Asli Centre for Public Policy Studies chairman Tan Sri Ramon Navaratnam said the Budget must be designed to meet the basic needs of society, adding that the policies must be “needs based” and not “race based”.
He also hoped that the Council of Eminent Persons’ recommendations would also be made public and be incorporated into the Budget.
“New Economic Policy has served its purpose relatively well, but it must be modified into the much more acceptable new economic model, which is fairer to all Malaysians (as) too much protectionism will reduce national efficiency, promote mediocrity and not meritocracy and competition and undermine national unity,” he said in a statement.
Ramon said that Budget 2019 needed to be “consolidated and to be mildly expansionary”.
“An economic growth rate at about 4.6% for 2019 is acceptable. We can’t expect too much more without facing more strains.
“Inflation could be maintained at low level of about 2-3%, if we can keep the budget deficit within 3% of GDP. It’s not a sacrosanct target and we can be a bit more flexible and relaxed,” he said.
Ramon pointed out that in the new Budget, Malaysians should not expect “the traditional goodies”, nor tax cuts or tax reliefs.
He added that he was expecting that the new Budget would impose “more new and higher taxes” on the wealthy and the well-to-do.
However, he called on the government to not tax the poor and instead to give tax incentives to them.
Tax incentives, he said, should also be given to corporate foundations so that these foundations would be able to invest more in its corporate social responsibilities.
Ramon also said more attractive policies should be developed to get the private sector to further participate in the nation’s economic growth.
“The Budget could raise more taxes such as wealth taxes, estate duties. Carbon taxes and sin taxes like tobacco and alcohol,” he said, adding that tax charges on public services like roads and motor taxes could perhaps be implemented to reduce pollution and traffic jams.
Ramon said suitable tax incentives should also be introduced to stimulate better multiracial investment, economic growth and income distribution.
“All the new reforms on good governance, better human rights, and especially more pro B40 policies have to be given greater priority in the Budget and in its implementation.
“Corruption and budget expenditure leakages should also be aggressively tackled to raise confidence in the new government’s capacity to govern effectively,” he said.