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PUTRAJAYA: Malaysian Prime Minister Muhyiddin Yassin said on Wednesday (Nov 4) that the government will introduce an expansive budget to ensure people’s prosperity, business continuity and economic resilience amid the COVID-19 pandemic. .
He said during a television interview that the first approach for the 2021 budget, which will be presented on Friday, is to fight COVID-19 from a health perspective. Therefore, substantial funds will be channeled to manage the pandemic and extend the necessary support to those at the forefront, he added.
“We will do it now and we will continue to do so until COVID-19 ends,” he said.
The prime minister also said the budget is a continuation of the four stimulus packages worth RM305 billion (US $ 73.2 billion) that were previously announced.
The most recent stimulus package was additional assistance under the PRIHATIN Complementary Initiative Package of RM10 billion, which is in line with the government’s efforts to drive economic recovery.
The KITA PRIHATIN package is an extension of the previous economic stimulus packages, namely PRIHATIN, PRIHATIN SME PLUS and PENJANA for a total value of RM295 billion, or about 20 percent of the nation’s gross domestic product (GDP), with an additional tax injection totaling RM 45 billion from the government.
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Bank Negara Malaysia has revised its GDP growth forecast for 2020 to between -5.5% and -3.5% from -2% to 0.5% previously.
The Malaysian economy is expected to recover to growth of between 5.5% and 8.0% in 2021.
“The budget is part of the 6R plan initiated by the government, namely, Resolve, Resilience, Restart, Recover, Revitalize and Reform,” he said during the hour-long interview.
He added: “The government will continue to spend in a relatively difficult situation to boost the country’s economy.”
The 2021 budget will be presented on Friday and the scheduled debate will end on December 10.
Commenting on the government’s decision to raise the debt-to-GDP ratio from the legal limit of 55 percent to 60 percent, Muhyiddin said that this has given ample scope for Putrajaya to embark on an expansive budget.
Maybank Kim Eng’s economic research forecasts a deficit of RM90 billion, or 6 percent of GDP, compared to an estimated RM95 billion, or 6.7 percent of GDP in 2020.
The 2020 budget presented last year was worth 297 billion ringgit.
READ: The King of Malaysia urges MPs to provide ‘strong support’ for the 2021 budget for people’s well-being and economic recovery
In addition to health, Mr. Muhyiddin said the second focus area of next year’s budget is to help the vulnerable, both individuals and micro-businesses, especially those affected by COVID-19.
“The third is to stimulate economic activities to provide employment opportunities, commercial activities, as well as to boost growth and recovery in 2021,” he said.
The government would also implement incentives to attract foreign direct investment (FDI), the prime minister said.
“The global situation is challenging and many countries are competing for investments in their countries. So this is something we are paying attention to in the future. We want to launch an ecosystem of business infrastructure.”
Therefore, Muhyiddin said that the incentives to attract FDI to Malaysia will not only apply next year but also in 2022.
During the first six months of 2020, Malaysia recorded investments of RM64.8 billion in the manufacturing, services and primary sectors.
Of the total approved investments, national direct investments (DDI) accounted for 69.8%, or RM45.3 billion, while FDI comprised the remaining RM19.5 billion.
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MUHYIDDIN REQUESTS BIPARTISTS SUPPORT TO APPROVE THE BUDGET
On Wednesday, Muhyiddin also expressed his hope that all members of Parliament (MP), including those from the opposition bloc, will support the proposed budget for the good of the well-being of the people and the country.
“Considering the importance of the 2021 budget to continue our efforts to manage COVID-19, ensure the survival of the vulnerable and direct the economy, I truly hope that all parliamentarians of all political backgrounds will support the 2021 budget,” he said.
He added: “The problem before us is not simply a government problem, but a national problem. If we love our country … we will try to save it in any way possible.”
Dewan Rakyat in Kuala Lumpur. (Photo file: Bernama)
The prime minister said that the government has a huge responsibility and burden on its shoulder regarding the budget.
“The burden can be eased if all sectors could put aside their political beliefs and help the government.
“The Cabinet can play their part, government officials can play their part too, but if others can also help in some way, it will be the sacrifice that we will really appreciate,” he said.
“I hope this can be done to ease the burden on the government and the people.
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Muhyiddin said that the 2021 budget is an inclusive budget, as the views of various sectors have been taken into account, including the opposition, non-governmental organizations, businessmen and people from all walks of life.
This is also the first time in the country’s history that the contributions of the opposition were taken into account in the formulation of the national budget, he said.
In a statement Wednesday, Istana Negara said King Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah appreciated the spirit of bipartisanship and consensus shown among political parties on the budget.
The king had previously asked all deputies to give their strong support to the budget. If MPs vote against the budget, the defeat would be considered a vote of no confidence against Muhyiddin, who has a slim majority in parliament.
“Al-Sultan Abdullah believes that political maturity leaving aside differences and personal or party interests is very important now, for the security and well-being of the people and the well-being of the country that has been affected as a result of the COVID-19 pandemic, “the palace said.
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