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PETALING JAYA: Former Prime Minister Najib Razak has questioned whether the 2021 budget will be able to prevent an economic recession and the loss of millions of jobs if Covid-19 continues or worsens next year.
He said aid from the Bantuan Prihatin Rakyat government, which provides financial aid for the poor, is less than in previous years. The loan moratorium, which had been a lifesaver for many, had also not been extended.
“The money in Account 2 of the Employee Provident Fund under i-Lestari is also about to run out,” he said in a statement, referring to the withdrawal mechanism intended to ease the financial burden on members and help them meet their needs. basic monthly financials. during the Covid-19 pandemic.
The maximum amount that was allowed to be withdrawn under this scheme was RM500 per month to meet the basic financial needs of the population.
“To avoid being called a traitor, should we support a budget that is unlikely to prevent economic recession and will result in the loss of a million or two million jobs?
“This is why I suggested in my 2021 budget debate that the government should take bold and extraordinary steps to meet the extraordinary challenges right now,” Najib said in a Facebook post.
The former finance minister also said that the allocation for the Salary Subsidy Program (PSU) was lower and questioned whether this could protect workers’ jobs and safeguard against an economic recession that is expected next year.
Najib said that RM 15 billion had been allocated since April this year, with each worker earning less than RM 4,000 and receiving RM 1,200 a month.
“But the subsidy for 2021 is different from that of 2020. The total allocation has been reduced to 2.4 billion ringgit compared to 15 billion ringgit. It has been extended only three months compared to the previous nine months, ”he said.
Najib added that the subsidy is now also limited to only certain industries, such as the tourism sector, adding that the total number of employers who will benefit from the aid was around 70,000 compared to 330,000 previously.
The number of workers who will benefit from this subsidy program would be 900,000, compared to 2.7 million previously, he added.
Because of that, Pekan’s deputy said he had set two conditions to support the 2021 budget: allowing EPF contributors to withdraw RM10,000 from their Account 1 and allowing the loan moratorium to be extended for another six months. However, he said the government had not yet fully embraced them.
MPs are currently debating the 2021 budget of RM322 billion.
Prime Minister Muhyiddin Yassin needs the budget to be approved or risks facing new polls in a situation where the country is battling an increase in Covid-19 cases.
