KUALA LUMPUR:The bipartisan approval of the hotly debated Budget 2021 worth RM322.5 billion is bound to instil confidence and augurs well for the country as it embarks on economic recovery following unprecedented challenges due to the COVID-19 pandemic.
“It would be able to instil confidence not only among domestic but also foreign investors,” said Malaysian Institute of Economic Research (MIER) chairman Tan Sri Dr Kamal Salih.
The approval is vital in ensuring the country’s growth which is seen to be recovering from a record low Gross Domestic Product (GDP) contraction of 17.1 per cent in the second quarter of the year to -2.7 per cent in the third quarter of 2020, he told Bernama when asked on the budget approval.
Earlier, Parliament passed Budget 2021 in a voice vote at the policy stage.
Kamal, however, noted that it would be an uphill task to ensure a big swing in the growth rate. He said that to ensure a big swing of 11.5 per cent from -5.5 per cent projected in 2020 to 6.0 per cent forecast by MIER, the government must take additional measures aside from the initiatives outlined in the budget.
Bank Negara Malaysia (BNM) projects a growth rate of 6.5 to 7.5 per cent in 2021.
He said MIER had been calling for more new investments or new injections of money or funds to finance the infrastructure projects that will create a multiplier effect on the country and the economy.
These, he said, included building more affordable houses which would create more jobs and generate better disposable income for the public so that they can spend more.
“The government should also focus more on issues such as a hike in food prices and food security, as well as technology-related issues which are closely linked to foreign investments,” he said.
Kamal said he believed that the approval of Budget 2021 would pave the way for Malaysia to achieve its high-income nation status as envisioned in the Shared Prosperity Vision 2030 (SPV2030), but on condition that the government implements structural reforms and extraordinary measures.
The structural reforms include looking into the tax system and, probably, bringing back the unpopular Goods and Services Tax (GST), he said.
Maybank Investment Bank Research recently said the Finance Ministry has set up a committee to study various revenue-enhancing measures, including the possibility of reintroducing the GST.
In a research note released on Monday following a dialogue with Finance Minister Tengku Datuk Seri Zafrul Aziz last Friday, it quoted Tengku Zafrul as saying that other measures included analysing weaknesses in the tax regime and the impact of new taxation on the economy.
The ministry is also said to be studying options for new taxes such as carbon tax and digital tax, rationalising tax incentives, improving tax administration and enhancing tax audit, such as implementing tax identification numbers and enhancing data analytics.
“Extraordinary things like these have to be done in order to get out of this current economic and political mess,” said Kamal.
He said that to achieve the high-income nation target, Malaysia has to be run by a very stable and visionary government.
“It needs a very stable government with a clear vision, ability and will to do the unpopular thing, not the normal thing, to fight the current COVID-19 situation,” he said.
Kamal said he is hopeful that the government can continue prioritising issues pertaining to unemployment, measures to help the recovery of businesses as well as ensure the long-term economic recovery moving forward.
Meanwhile, ASLI Centre of Public Policy Studies chairman Tan Sri Ramon Navaratnam said although Budget 2021 has passed the policy stage, policies such as the New Economic Policy (NEP) have to be modified to attract more foreign and domestic investments.
He called on the private sector to play a bigger role during the COVID-19 crisis.
“Sectors such as education, healthcare, transportation and infrastructure can be financed by the private sector, just like the toll roads,” he said.
-- BERNAMA
Bernama
Thu Nov 26 2020
Earlier, Parliament passed Budget 2021 in a voice vote at the policy stage. - foto BERNAMA
Tumpuan Khamis - 02 Mei 2024
Ikuti rangkuman berita utama yang menjadi tumpuan di Astro AWANI.
PM Singapura mahu warga bersatu, kekalkan kestabilan politik dalam ucapan terakhir
Perdana Menteri Singapura Lee Hsien Loong menyeru rakyat Singapura supaya terus bersatu padu dan mengekalkan kestabilan politik bagi hala tuju Singapura ke hadapan.
Mei Xing hampa gagal sumbang mata buat Malaysia
Mei Xing tidak dapat menyembunyikan kesedihannya selepas gagal menyumbang mata kedua buat pasukan Malaysia ketika menentang Australia.
Profil Malaysia semakin meningkat di mata dunia - PM Anwar
Bukan ingin mendabik dada atau bersikap sombong, tetapi Perdana Menteri Datuk Seri Anwar Ibrahim melihat profil Malaysia kembali meningkat dan dihormati di mata dunia.
Kenaikan gaji penjawat awam tidak lagi pentingkan kelompok tertinggi seperti dahulu – PM Anwar
Kenaikan gaji penjawat awam melebihi 13 peratus, seperti yang diumumkan pada Hari Pekerja 2024, adalah berbeza dengan kenaikan yang pernah dilaksanakan dalam pentadbiran terdahulu.
AWANI 7:45 [01/05/2024] – Kos mencecah RM10 bilion | Gaji minimum beri impak positif | Seolah-olah dunia menghampakan
Kenaikan gaji penjawat awam lebih 13 peratus dibentang ketika Belanjawan 2025.
Kerajaan semak semula kadar gaji minimum.
Kusut, lesu dan kecewa dengan perkembangan di Gaza, ulas PM.
Protes pelajar universiti pro-Palestin di Amerika terus meningkat.
Kerajaan semak semula kadar gaji minimum.
Kusut, lesu dan kecewa dengan perkembangan di Gaza, ulas PM.
Protes pelajar universiti pro-Palestin di Amerika terus meningkat.
Ceroboh hutan Raub: Tindakan penguatkuasaan berdasarkan bukti - MB Pahang
Tindakan penguat kuasa menahan dua individu yang didakwa menceroboh kawasan hutan di Raub semalam dibuat berdasarkan bukti kukuh, kata Menteri Besar Pahang Datuk Seri Wan Rosdy Wan Ismail.
"Yang tak ambil gaji dikritik, yang mencuri tak salah"
Satu tahun setengah sebagai perdana menteri, Datuk Seri Anwar Ibrahim ulangi tetap tegas tidak benar sebarang 'kecurian' atau 'kronisma' dalam kerajaan.
Isu Palestin: Ini soal prinsip dan nilai
Perdana menteri tegaskan walaupun berdepan kerugian, kerajaan Madani mahu memastikan keputusan yang diambil turut mengambil kira soal nilai dan prinsip.
Kedudukan, profil Malaysia tinggi di peringkat antarabangsa
Anwar akui antara kelemahan utama kerajaan adalah komunikasi sehingga rakyat tidak sedar reputasi tinggi negara di peringkat antarabangsa.
Aset rizab rasmi Malaysia berjumlah AS$113.76 bilion pada akhir Mac - BNM
Aset rizab rasmi Malaysia berjumlah AS$113.76 bilion pada akhir Mac 2024 manakala aset mata wang asing lain adalah US$1.61 bilion, kata Bank Negara Malaysia (BNM).
Kadar antara bank jangka pendek ditutup kukuh
Kadar antara bank jangka pendek ditutup kukuh hari ini susulan operasi Bank Negara Malaysia (BNM) yang menyerap lebihan mudah tunai daripada sistem kewangan.
Rizab Antarabangsa BNM berjumlah AS$113.4 bilion pada 15 April 2024
Rizab antarabangsa Bank Negara Malaysia (BNM) berjumlah US$113.4 bilion pada 15 April, 2024 berbanding dengan US$113.8 bilion pada 29 Mac, 2024.
BNM sedia guna instrumen, pastikan pasaran kewangan Malaysia kekal teratur
Operasi pasaran BNM akan memastikan mudah tunai yang memadai serta pasaran pertukaran asing berfungsi secara teratur.
Rizab antarabangsa BNM AS$113.8 bilion
Rizab antarabangsa Bank Negara Malaysia (BNM) berjumlah AS$113.8 bilion pada 29 Mac 2024.
Pemecatan salah: Bekas pengurus menang saman terhadap BNM
Mahkamah Tinggi hari ini memutuskan bahawa pemecatan bekas pengurus Bank Negara Malaysia (BNM) kerana menyertai aktiviti politik pada 2016 sebagai tidak sah dan menyalahi undang-undang.
Aset rizab rasmi Malaysia AS$114.28 bilion akhir Februari 2024 - BNM
Aset rizab rasmi Malaysia berjumlah US$114.28 bilion pada akhir Februari 2024 manakala aset mata wang asing lain adalah US$202.69 juta (US$1=RM4.73), kata Bank Negara Malaysia (BNM).
OPR Malaysia dijangka kekal stabil pada 3.0 peratus sepanjang 2024 - PIVB Research
Ini selaras dengan pandangan BNM bahawa tahap OPR semasa mencerminkan pendirian dasar monetari yang menyokong serta kondusif kepada ekonomi.
Jualan asing di Bursa Malaysia susut 24.4 peratus minggu lepas
MIDF Research berkata pelabur asing merupakan penjual bersih dari Isnin hingga Rabu, menjual ekuiti bernilai RM757.5 juta.
Ringgit dibuka rendah sedikit menjelang pengumuman data IHP
Pada 9.05 pagi, ringgit turun kepada 4.7390/7430 berbanding dolar AS daripada paras penutup 4.7340/7390 pada Jumaat minggu lepas.