NEW YORK – The government is planning to table a bill for the Fiscal Responsibility Act (FRA), which would enforce “transparency and clarity” in government spending, a week before Budget 2024 is presented for debate in Parliament in the middle of next month.
Speaking at a business forum in New York yesterday, Prime Minister Datuk Seri Anwar Ibrahim described the move as an important step to demonstrate his administration’s commitment and earnestness in making concrete reforms in the country’s financial management.
He listed improved financial procedures, procurement policies and ease of doing business as among the key aspects that need to be addressed.
“These have been major concerns among investors,” said Anwar, who is also Malaysia’s finance minister.
“We need to introduce the FRA to bring transparency and clarity in procurement. Hopefully, the legislation will be tabled prior to the budget presentation,” he said.
He stressed the importance of introducing the bill in the Dewan Rakyat by the time the budget is tabled. Otherwise, he explained, the budget presentation would just seem like an announcement without action.
Anwar was addressing the business community here during his talk on ‘Invest Malaysia: Regaining ‘Malaysia’s Lead in Asia’ at Sofitel New York. The event was organised by Bursa Malaysia.
Also present was Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz and Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.
The prime minister is scheduled to deliver his address at the United Nations General Assembly (UNGA) tomorrow.
Zafrul had explained as early as June last year on the need for the FRA.
He had then said that the country needs to be strictly supervised and controlled financially so that it has sufficient resources to implement appropriate reform programmes, and also to meet its environmental, social, and governance (ESG) agenda.
On February 24 this year, Anwar announced during the tabling of the revised Budget 2023 that the government would be presenting the FRA this year to ensure greater transparency and accountable management of the economy.
He then directed the Malaysian Armed Forces (MAF) to revamp its asset procurement system to ensure outside parties could no longer rake in excessive commissions.
He even brought this up during his bilateral meeting with Türkiye president Recep Tayyip Erdoğan in New York yesterday. Both leaders agreed that purchases of military equipment must be made through professional and transparent means, without any undue interference.
Subsidy reduction without adverse impact on poor
Anwar also said that the government wants to make sure that its policies consider the rights of all Malaysians despite the challenging scenario posed by the nation’s multi-racial and multi-religious makeup.
He stressed that the country is presently politically stable as his government has a two-thirds majority in Parliament.
“With that, we need to embark on very clear policies,” he said.
Replying to a question on subsidy rationalisation, Anwar emphasised that the move is necessary and that any reduction in subsidies has to be substantial.
The government is determining the final quantum to reduce in this regard without burdening those who are not well-to-do, he told the forum.
“Our main concern is that it must not affect the poor and the middle class,” he said.
He reasoned that reducing subsidies is just “plain economics”, as the government cannot continue to spend on subsidies from its coffers for long.
On another matter, Anwar said that Saudi Arabia is set to chair a meeting between the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (Asean) in Riyadh next month.
He said the Arab nations are placing strong importance on Asean countries, especially for enhanced trade opportunities in the future. – The Vibes, September 22, 2023
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