The Malaysian government led by Prime Minister Anwar Ibrahim has proposed a 388.1 billion ringgit ($87.5 billion) national budget aimed at helping the country resolve a number of domestic issues.
Anwar, who is also the Finance Minister, said the budget will focus on addressing the high cost of living, further strengthening the social safety net, and enhancing the micro, small, and medium enterprises’ ecosystem, being guided by six core values, namely sustainability, prosperity, innovation, respect, trust, and lastly, care and compassion, reports Xinhua news agency.
He said the government will also examine ways and means to reduce market disruptions as well as streamline business processes through the adoption of high technology and digitalization in a televised speech to the lower house of parliament.
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The budget mainly aims to address food security issues following widespread supply chain disruptions during the pandemic, with 1 billion ringgit allocated for various agro-industrial ventures to increase food production domestically and tax incentives for food producers.
Anwar also said the government is determined to control the country’s fiscal position including dealing with the national debt and at the same time continue to support inclusive and sustainable economic growth.
On revenues, the government will take a more progressive approach to broaden the tax base and will introduce a luxury goods tax this year while avoiding a consumption tax that will burden the people.
“Most people are still struggling. Food inflation is over 5 percent; wage rates are still low, so now is not the right time and place to introduce and implement it (the consumption tax),” he said.
Anwar also announced that the allocation for development was increased to 97 billion ringgit compared to 71.6 billion ringgit last year to enable the government to eradicate hardcore poverty within the year, especially in the northern Borneo states of Sabah and Sarawak.
“The increase is to enable the focus to be given to programs to eradicate poverty, repair public infrastructure and rural facilities … with the reform in government procurement procedures, it will be ensured that this increased allocation is fully utilized for the benefit of the people,” he said.
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