[Malaysia] Budget 2006 a non-event

Guan Eng: Budget 2006 a non-event
Oct 3, 2005 Malaysiakini

The government has failed to address the twin thrusts of its Budget 2006 theme, according to DAP’s secretary general Lim Guan Eng, who said it neither strengthens economic resilience nor meets challenges.
He said in a statement today that the budget speech tabled in Parliament last Friday has shown that the government refuses to establish a basis of merit and a competitive environment which are necessary for economic growth.
Lim said the proposals may be aimed at redressing the neglect felt by more than one million civil servants, but that these do not provide solutions for those in the private sector.
“The inflation rate was 3.7 percent in August, the highest since February 1999. Poor growth and high inflation has hurt many Malaysians, especially those in the middle and lower-income groups,” he said.
“By failing to meet the economic challenges of globalisation or to reward the resilience of Malaysians who are not civil servants such as businessmen or working in the private sector, Budget 2006 can be considered a non-event,” he said.
He also pointed out that the proposals would not deal with the problems of inflation and declining economic growth, projected at 5.5 percent next year.
In this respect, he proposed a RM3,000 increase in personal relief in come tax to a level of RM11,000 to help lower and middle-income earners deal with the impact of fuel price increases and inflation.
Involve non-bumiputeras
Lim also urged the government to revive the construction sector by opening up half of the contracts to non-bumiputera contractors, with the rest going to bumiputeras.
He said the government should not continue to rely on “out-moded and restrictive” policies such as quotas and the absence of open tenders, which paved the way for corruption.
“DAP regrets that with the billion ringgit construction and maintenance contracts - such as the RM4.3 billion for maintenance, RM1 billion for special allocations, RM3.6 billion for civil servant housing and RM2.1 billion for low-cost housing - non-bumi contractors still cannot get government contracts.
“What is the use then of giving licences to non-bumiputera contractors when they cannot bid for government jobs? The mantra of open competition is preached by MCA and Gerakan but never practised.”
He also urged the government to allow Petronas to share its profits with Malaysians
“If the accumulated earnings of RM446 billion (RM200 billion profit and RM246 billion paid to the government) are distributed, each Malaysian would receive RM20,000 which is more beneficial than wasting it through corruption and malpractice.”
He reminded the government and Petronas that oil was a natural resource that dis not belong to any one person but to all Malaysians, and that it was unfair for the people to suffer fuel price increases while Petronas made money.
In addition, Lim called for a corporate culture of excellence to improve the performance of government-linked corporations (GLCs) based on key performance aspects which were results-driven, technologically and knowledge-based besides being ethically-centred by corporate social responsibility.
“GLCs should give back to society. Adequate compensation must be paid to those who are affected by their money-making ventures. The refusal to share profits is not only unethical but also irresponsible.”
Public transportation issue
Lim was further disappointed that funding for educational training continued to be race-centered since RM1 billion was being proposed for trade and industrial training at special institutes with a mainly Malay enrolment, such as Mara colleges and state-run youth and industrial training centres.
“The government should provide equal opportunity by opening up educational and human resource training to all Malaysians. “
There is also a need for the government to seriously invest in improving public transportation, he said, as part of a paradigm shift from dependence on private motor vehicles.
Another suggestion was that excise duties on cigarettes and liquor be channeled to a health fund for patients with lung and liver-related diseases.