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It is not easy to assume a position of authority and importance, especially when the nation faces a crisis like never before.
A political crisis had engulfed the nation just before the outbreak of the global Covid-19 pandemic, but it was grappling with the possible economic catastrophe of shutting down almost the entire economy to deal with the pandemic which was the real challenge for policy makers. at the appearance.
For Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, the job was a daunting task, given where the national and global economies were heading. He delved into his business sector experience to navigate through the task ahead.
“What I have learned from CIMB Group Holdings Bhd
it is being adopted here at the Ministry of Finance (MoF). I wanted to be transparent and have our stimulus packages monitored for execution, ”he says.
CEOs of publicly traded companies are used to articulating their plans and goals, and there is a risk that those ambitions will not meet their intended goal.
For Tengku Zafrul, it is necessary for people to know how packages are delivered regardless of the risk of targets not being met, but a big departure from the way things were announced in the past has been the focus on people in the advertised packages. .
It’s packed with initiatives that put money straight into people’s pockets and for good reason. As the government had to shut down almost the entire economy, it was imperative that stimulus packages protect lives and livelihoods.
“Before, it was about giving money and that was it, you were done with the job. But now, the policy response has to be directed, where the money is going to end up and making sure households survive, ”he says.
And that approach is paying off.
The unemployment rate, although from a high historical perspective, has fallen from 5.3% in May to 4.7% in July, which means that jobs are being created and filled.
The economy is also seeing trade figures and surplus grow, along with industrial production back in positive territory.
“If we look at the current economy, in terms of employment, SMEs contribute 40% of GDP but employ 70% of the active population.
“So you have to look from that angle and at the same time if you look at the impact of Covid-19 on the vulnerable sector, the B40s are especially the people who need a lot of help.” That’s where we want to target the BSH recipients. We need to give them a bonus because they cannot go to work, because most of them are in the informal sector.
“But as the economy opens up and the world economy improves, hopefully Malaysia will improve as well and then I think the shift will be where we think the balance should be,” he says.
Tengku Zafrul says having the Prihatin and Penjana packages helps as they will contribute 3% to GDP due to the multiplier impact, and the recent additional RM10bil package will help with the fourth quarter figures.
That money will find its way into the economy faster rather than big development packages for highways, schools, and other expensive items.
The government has taken steps to jump-start the economic recovery, and the next two steps are to revitalize and reform it.
That will take shape in the next budget and also in the 12th Malaysia Plan (12MP) early next year.
There will be a different approach in the next budget where the Finance Ministry has been keeping an eye on all states to see what is required.
The efficiency of spending will be paramount and, although there will be a need for large projects, there must be a combination between what big companies want and what the man in the street needs. “My hope is that we look at the long term, with the understanding that if there is a need to change and adapt to things quickly, we should be able to do so,” says Tengku Zafrul.
“I think one thing that we always talk about today is actually all the disparity.
“How to bridge the gap?
“How do we do that with income and the digital, educational and even regional disparity between different parts of the country?”
TVET and education will be a central theme and the budget will be a prelude to what the 12MP will mean.
“The other pillar that I mentioned is sustainability. There will be an emphasis on production, consumption and even the sustainable conservation of natural resources and the environment, ”he says.
In an extensive interview, Tengku Zafrul spoke on many topics. He answered a series of questions ranging from the job in question to the economy, the next budget and also political events in the country.
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