INFLATION will be among the issues to be addressed in Budget 2025, which will be tabled on Oct 18, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that while the prices of goods such as edible oil, petrol and flour are relatively cheaper in Malaysia compared to regional peers, there was still a focus on improving income levels, reported Bernama.
“Income levels have not increased, despite an increase in productivity or investments.
"We must address this issue and that is what I have done with the civil service. We raised civil servants’ salaries, which have been largely ignored for the last 12 years," he said.
Anwar had earlier announced a 15% increase for civil servants in the implementing, management and professional groups, and a 7% increase for those in top management.
The adjustments will be implemented in phases, beginning on Dec 1, 2024, for phase one, and Jan 1, 2026, for phase two.
This is the first salary adjustment in 12 years and is a timely response to current economic conditions.
Battling corruption
On another issue, he said the Madani government's commitment to combating endemic corruption has significantly restored confidence among domestic and foreign investors, leading to increased new investments.
He said his primary concern during his initial months in office has been to restore the nation's reputation, particularly following the 1Malaysia Development Bhd (1MDB) scandal.
Anwar said that both domestic and foreign investors have recognised the government's strong commitment to fighting corruption, even as some critics have deemed it overzealous.
"Without that trust and confidence, people will not invest in a big way.
"Unless those people have some corrupt arrangements with you, they will continue.
"But that has to stop. Fortunately, it has stopped, although we are still carrying on with this mission; the crusade against corruption must be in full force," he said.
Anwar, who is also the Finance Minister, emphasised the importance of attracting high-end investments, particularly in artificial intelligence (AI) and semiconductors.
Anwar also highlighted the necessity of closing the skills gap to attract high-value industries, with the government aiming to produce 60,000 engineers over the next five years.
Value of ringgit
On the ringgit, he said it has yet to reach its fair value despite its recent rise against the US dollar and emerging as Southeast Asia’s best-performing currency.
"It is still undervalued (even) at RM4.10 per US dollar. People know it used to be RM3.80, but it is wise for it to strengthen gradually without intervention.
"Let the market forces play. This would reflect confidence in government policies and how we implement reforms," he said.
On a Friday-to-Friday basis, the ringgit fell to 4.2155/2240 against the US dollar, down from 4.1230/1280 the previous week. - October 5, 2024
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