Budget 2013 draws mixed reactions
Several NGO leaders and experts share their views on the Budget 2013.
PETALING JAYA: Following Prime Minister Najib Tun Razak’s tabling of the Budget 2013, which amounts to RM251.6 billion, several NGO leaders and associations shared their views on the matter.
Federation of Malaysian Consumer Associations (Fomca) chief executive Paul Selvaraj:
Overall the budget is good as it addresses several pertinent issues such as transportation and healthcare. But more needs to be done to improve connectivity of transport system between rural and urban areas.
As for healthcare, it’s good the government is increasing the number of 1Malaysia clinics in the country. However, we must also look into having more hospitals and doctors in the so that people can have better healthcare system.
Malaysian Trade Union Congress (MTUC) president Khalid Atan:
It is quite a good budget that does not only concentrate on foreign investment but also on the domestic economy. It also focuses on the development of human capital and the welfare of the rakyat. It covers all levels of the people and it is a fair budget.
I understand that the global economy is not stable, so more is needed domestically. If we can generate better income, we can reduce the mation’s deficit.
National House Buyers Association secretary-general Chang Kim Loong:
Najib is ill-advised in his decision to revise the Real Properties Government Tax (RPGT) and increasing the ceiling price of PR1MA My First Home Scheme to RM400,000.
The 15% RPGT which will be levied on those who dispose their properties within two years will not help to curb property speculation. Even now, house buyers are already waiting for two or three years for their houses to be completed so that they can sell it.
In layman’s terms, the revision will allow speculators to purchase properties from developers upon launch and spike up the property price, while paying only the proposed 10% RPGT on the third year.
(Currently, the RPGT levied on properties disposed between three to five years of ownership is five percent.)
Consumer Association of Penang (CAP) president SM Mohamed Idris:
We welcome the reduction in sugar subsidy and the resulting rise in the price of sugar. For the sake of consumers health it would be better if the the subsidy is withdrawn totally. As for the RGPT, a tax of 15 % for the first two years is not high enough as banking loans are still cheap.
RPGT of 70% for the first two years will be more effective in curbing speculation and bringing down house prices to a more affordable level. Housing for Malaysians should be be given priortiy as such foreigners should not be allowed to buy landed properties (as in the practice in certain countries).
As for non-landed properties, foreigners should not be made eligible for local housing loans unless he is a permanent resident.
Orang Asli Concerns director Colin Nicholas:
Although Budget 2013 provides RM88 million to implement economic development programmes and water supply projects for the Orang Asli community, it’s not addressing the issue as most of the time there is water gravity system in place here.
(Water gravity system refers to a system where the Orang Asli obtains water from nature.)
What is needed is proper delivery system with no leakages. Two years ago, a similar project was mooted but the project failed.
Centre for Independent Living and Training advisor Francis Siva:
We are very disappointed by the budget. Nothing much for us disabled people despite the prime minister also being the women, family and community development minister. We are living in bad shape and suffering from high cost of living.
Nothing is mentioned about healthcare facilities and job opportunities for the disabled to live life in dignity. Najib is not fit to hold the welfare portfolio.
Sarawak Dayak Iban Association president Sidi Munan:
No doubt it’s an election budget. It looks like it will favour urban areas better as compared to rural areas like Sarawak.
The government must understand that when you offer financial remuneration to civil servants, prices of goods will soar and it will also affect those who are not earning a fixed income like those in rural areas.
Rural dwellers, especially from Sarawak, got a raw deal from Budget 2013.
United Borneo Front deputy chairman (Keningau chapter) Nicholas Guntobon:
I’m upset that the budget did not address the need to abolish the cabotage policy that is imposed on Sabah and Sarawak. The polic is really affecting our economy. I don’t see how the budget is going to benefit Sabahans in general. I don’t feel encouraged by it.
Political analyst Khoo Kay Peng:
The government has not diverted its usual strategy. Budget 2013 is a lot similar to Budget 2012. This is not the way forward, knowing Malaysia is facing a middle income trap.
The operating budget is suppressing and development budget has not increased. In addition, it focuses on hand outs and subsidies. We need to move away from that.
The budget only addresses plantation and oil and gas industries and not the manufacturing and services industry.
As for the Tun Razak Exchange project, it will only attract local players to take advantage of the tax benefits. The budget does nothing to impress foreign investors.
Political analyst Lim Teck Ghee:
This is an election budget and is fiscally irresponsible, The government is continuing with a system of unjustified handouts aimed at buying votes of younger voters. This cannot be sustained.
Government expenditure needs to be reduced and all ministries should have a budget cut in operational and development cost. The growing deficit expenditure has not been cut back. It has ballooned over the years and we need to rationalise our tax structure. It needs to be more progressive.
Upper income earners need to pay more. They are getting away with more disposable income.
Malaysian Medical Association (MMA) president Dr R S Manalan:
I am disappointed that there is no allocation for a partnership between the government and the general practitioners. I don’t understand why people in the age group of 25-40 are left out for mammogram tests. Even the amount announced is not sufficient.
I am also disappointed that there was no mention on sin tax. The funds could be channelled to the Health Ministry.
National Union for Teaching Profession (NUTP) secretary general Loke Yim Pheng:
Najib made a right move. Budget 2013 would ensure no children are left behind by allowing better access to pre-schools. The formation of the Education Development Unit (EDU) is also welcomed as it would allow us to monitor what goes wrong and what goes right.
RAM Holdings economist Yeah Kim Leng:
The various goodies promised by Najib in Budget 2013 are within expectation, and meant to widen the beneficiary groups. It is commendable that the government is trying to cut the fiscal deficit from 4.5 % to 4.0%, although we would like to see a drastic reduction.
More importantly, middle and long term measures must be taken to achieve a balanced budget. But I understand that it is unlikely for the government to cut massive spending until the conclusion of the general election.
Institute for Democracy and Economic Affairs chief executive Wan Saiful Wan Jan:
The PM is trying to improve his standing with the middle income group as evident with the RM250 handouts offered to single people and income tax reduction. They know their biggest challenge for the election is the middle income group, so this is exactly where they are trying to target.
However, it is also an unhealthy continuation of the subsidy mentality and does not fit with the New Economic Model espounded by Najib himself. If he is serious about liberalising the economy, subsidy should be reduced.
