GEORGE TOWN – The real economic potential of the country can only be unlocked if Putrajaya is willing to push ahead with a federal budget that is equitable and based on competencies, rather than just race and politics.
Two technocrats shared their views that Budget 2022 may generate growth on paper, but its benefits will likely not trickle down to the groups who need it most.
With the economy still looking sluggish as the country emerges from lockdowns, there is a need for a budget that is evenly distributed among its productive sectors, instead of just channelling aid to areas that may not really need it, they said.
To an extent, it keeps the poor impoverished, said former economic adviser to the prime minister Muhammed Abdul Khalid.
He said while race still matters in ensuring equitable growth, it must be properly targeted.
One example he cited was the huge deficit in allocations between the Bumiputera and non-Bumiputera groups.
Some RM11.4 billion has been allocated to the Bumiputeras compared with just RM345 million to the Chinese and Indian communities put together.
“We have not even reached the other minorities yet.
The non-Bumiputera group has been allocated with around 3% of what the Bumiputera group is slated to receive.”
Khalid made such observations while speaking at a Friday talk show Bajet 2022: Mampukah Rawat Ekonomi Melayu, organised by the Malay Chamber of Commerce here.
He said the budget proponents may mean well, but they have also ended up antagonising those who really need an injection of quality aid and tax breaks to spur domestic consumption to power the real economy back up.
Also, the tax on the super wealthy is unclear, causing more confusion to investors on Bursa Malaysia, hence the recent sell-off at various counters.
Meanwhile, former Balik Pulau MP Yusmadi Yusoff said a national budget needs to be comprehensive in helping the poor – Bumiputera or not.
“Only if we are fair in recognising our weaknesses can we move the economy forward.”
“It is apparent that this government has failed to heed the lessons from Covid-19 despite how a fair number of them (government officers) were infected with the virus,” Yusmadi said.
Covid-19 does not discriminate. It infects everyone it comes across. Our national budget must be tailored to subdue the virus’ impact on the economy, not just healthcare.”
While it is looking to be an election-based budget, he said that with Covid-19’s effect on the economy, Budget 2022 should be reflective of a need to address the shortcomings of the poor, not be driven by race.
“The more we are preoccupied with ourselves, the more we will lose out regionally and our geopolitical influence will erode to an extent, we will find ourselves behind our neighbours.”
Yusmadi said more allocations should be channelled towards talented Malaysians who can be inspired to become entrepreneurs, as well as to create quality jobs.
It should not be only redirected to the public sector, which over the years has proven to be less responsive in growing the economy amid reports of corrupt practice, he added. – The Vibes, November 7, 2021
