Malaysia’s budget for 2021 was approved in third reading in parliament



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KUALA LUMPUR: Malaysia’s 2021 Supply Bill passed its third reading in the Lower House with a vote by division on Tuesday (December 15).

A total of 111 members of Parliament (MP) voted in favor of the budget proposed by the Perikatan Nasional (PN) government of Muhyiddin Yassin.

A total of 108 others voted against the bill, while one was absent.

The budget of RM322.54 billion (US $ 77.9 billion), released on November 6, is the largest ever recorded in Malaysia amid a COVID-19 pandemic. Previously, contributions had been requested from opposition legislators on the formulation of this budget, the first time in the country’s history.

The bill was previously approved at the policy stage on November 26 with a voice vote, based on legislators verbally indicating whether they support the budget or not.

The budget was then discussed at the committee stage, where the allocation for each ministry was examined. Allotments for the 27 ministries were approved.

The bill will now go to the Senate, before it is presented to the King of Malaysia for royal approval.

Seen largely as a vote of confidence in Muhyiddin’s leadership, Tuesday’s result showed that the prime minister still has a majority.

The absentee was Gua Musang Tengku Razaleigh MP Tengku Mohd Hamzah of the United Malaysia National Organization (UMNO), according to a Facebook post by Subang de Parti Keadilan Rakyat MP Wong Chen.

Tengku Razaleigh had met the press a day earlier together with former Prime Minister Mahathir Mohamad and indicated that they would work together to revive the country’s economy.

CONTENTIOUS INVOICE PASSAGE

The Lower House has 222 seats, but there are currently 220 deputies following the death of two deputies in October and November this year.

The NP government has a very small majority, which was demonstrated during the removal of former President Mohamad Ariff Md Yusof with a vote of 111-109 at the beginning of the second parliament meeting on July 13.

Muhyiddin came to power in March after removing Parti Pribumi Bersatu Malaysia (Bersatu) from the Pakatan Harapan (PH) government, leading to his collapse and the resignation of Dr. Mahathir Mohamad as Malaysia’s seventh prime minister.

Since then he has struggled to maintain a fragile balance of power with allies such as the former ruling UMNO party.

The approval of Muhyiddin’s first budget as prime minister has been controversial, as his administration faced fire from both sides of the political aisle.

Before the budget debates that began in early November, the opposition PH coalition had already declared six “non-negotiable” recommendations for a “Unit Budget”, including an increase in the number of temporary health workers, as well as a special allocation to address the COVID-19 spread in Sabah.

READ: Pakatan Harapan Makes 6 Tips for Malaysia’s 2021 Budget

Other points included the expansion of the social safety net and the extension of the loan moratorium, which was previously instituted from April to September this year until March 31, 2021.

Meanwhile, former Prime Minister Najib Razak, who heads the Barisan Nasional Backbenchers’ Club, said that the former ruling coalition, which now supports Muhyiddin’s PN government, would back the 2021 budget.

However, this was on the condition that citizens could make a one-time withdrawal of up to RM10,000 (US $ 2,461.24) from Account 1 of their Employee Provident Fund, as well as extend the moratorium on the loan.

Another point of contention included an allocation of RM85.5 million for the Department of Special Affairs (JASA), now renamed the Department of Community Communications (JKOM). On December 10, his allocation was reduced to 40.5 million ringgit.

READ: Why there is a strong debate in the Malaysian parliament on a measure to reactivate the government’s ‘propaganda unit’

OPPOSITION MOVEMENTS

On Monday, the opposition bloc withdrew in protest after three MPs, including two government ministers and one opposition MP, were allowed to enter the chambers to vote dressed in full personal protective equipment (PPE).

All three were supposed to be in quarantine after coming into contact with COVID-19 patients.

Later that day, Dr. Mahathir and his long-time political rival Tengku Razaleigh held a joint press conference, raising the specter of budget defeat in Tuesday’s reading.

Former Malaysian Prime Minister Mahathir Mohamad and politician Tengku Razaleigh Hamzah react

Former Malaysian Prime Minister Mahathir Mohamad and politician Tengku Razaleigh Hamzah react after a press conference in Kuala Lumpur, Malaysia, on December 14, 2020. REUTERS / Lim Huey Teng

At the press conference, the two urged their fellow MPs to put Malaysia ahead of personal or party interests when the bill was presented for third reading.

Dr. Mahathir said that the PN government of Muhyiddin could fall if it loses the vote.

“If he loses, then we don’t have a government. So it is necessary to form a government,” he said.

PH also issued a statement on Monday urging MPs from both the opposition camp and the government side to reject the budget at its third reading.

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