By P Prem Kumar
KUALA LUMPUR (AA) – Pressured by calls to resign and demands for institutional reforms, Malaysia’s prime minister has allocated a RM260.8 billion ($623.68 million) federal budget for next year — a decrease of 2.4 percent on 2016.
It was packed with freebies for middle-and low-income earners, including loans for buyers of affordable housing, cash aids, and buffers to offset the rising cost of living.
With concerns rising about the influence of Daesh-linked groups in the region, RM5.3 billion has been allocated for security.
Speaking at the tabling of the budget Friday, Najib Razak said Malaysians would have to start spending moderately and prudently to be more economically sustainable.
“If we look at history, the first post independence budget presented in Parliament in 1959, the government had only allocated 888 million Malaysian Ringgit, while in 2017 the allocation is 260.8 billion Malaysian Ringgit,” he said.
“The revenue collection in 2017 is expected to expand by 3 per cent to 219.7 billion Malaysian Ringgit.”
Razak added that the government is determined to achieve a fiscal deficit target of 3 percent of gross domestic product (GDP) in 2017 compared to 3.1 percent this year.
Noting that Malaysia’s economy remains stable and is on a positive track, he said the economy grew at 4.1 percent and Malaysia will be able to achieve a growth of between 4 percent-4.5 percent by the end of the year.
Najib said that this was due to “deliberate and crucial” decisions that were “unpopular”.
“A nation’s economy is highly related to perception, as without confidence there will be no investment to drive the economy, he said.
“But, if our own people undermine and sabotage our economy, we are bringing down our own nation.”
Razak is in midst of a political thunderstorm, with allegations of corruption, power abuse and mismanagement of government resources rocking his government.
On Nov. 19, Electoral reform group Bersih is expected to stage a fifth edition of street protests against Razak, demanding that he take responsibility for alleged corruption at state wealth fund 1Malaysia Development Bhd (1MDB).
