KOTA KINABALU – Ministers should take a pay cut to reduce the federal government’s expenditure, said former Sabah chief minister Datuk Seri Mohd Shafie Apdal in his 21-page economic recovery plan.
Shafie, who is also Semporna MP, suggested that development expenditure should be suspended.
He said the government can raise RM75 billion if all development expenditure this year (around RM55 billion) is suspended and the same allocation is halved in 2021.
An additional RM40 billion can be raised from domestic borrowings, he added.
“To ensure lower debt payment, the government can sell the debt (sukuk) to Bank Negara at a 0.5% interest rate, thus avoiding burdening future generations of servicing the debt.”
Shafie, an economist by training, said all 70 ministers and deputy ministers, GLC and GLIC bosses, senators, MPs, and senior government servants should take a 30% pay cut.
“Many Malaysians have lost their jobs, with the number of unemployed having increased by 41% between January and August. The unemployment rate in Malaysia this year is the highest in 30 years,” he said.
Shafie said large-scale measures involving RM115 billion in funds are needed to help Malaysia’s economy recover from the impact of Covid-19 between 2021 and 2023.
He added that RM50 billion should be allocated as cash aid for Malaysians.
“A monthly cash assistance of RM750 for the next 12 months for all B40 families, and RM500 for all M40 households, single mothers, elderly, disabled, and the homeless.”
Shafie said that RM1,000 cash grants of up to six months should be given to the jobless and those laid off, and a RM2,500 interest-free microcredit loan established to assist troubled households.
Shafie said the 110 social assistance and social safety net programmes currently supervised by more than 30 agencies and ministries should be all centralised under the Women and Family Development Ministry for better coordination.
For the businesses, he said that RM45 billion should be made out to firms and start-ups to retain workers and create job opportunities.
Shafie said that for instance, special grants of RM6,000 should be given to the self-employed and gig economy workers, possibly paid in equal amounts each month of up to RM500 a month.
“This will allow 2.4 million self-employed individuals to restart their businesses.
“They will also be entitled to wage subsidies if they register and consistently contribute to EPF and Socso as part of the entitlement.”
Shafie said a loan moratorium should also be extended to all firms for another 12 months, subject to a loan amount of RM1 million, while the government pushes its “Buy Malaysia Products” campaign to ensure small and medium-sized enterprises can sustain themselves.
He added tax deductions and RM20 billion allocation should be made to encourage employers to hire people and encourage youths to venture into modern agriculture.
Shafie said the government should also assist those entering agriculture and have them supply ingredients for the school breakfast programmes. – The Vibes, November 5, 2020
