‘We want input from everyone’, says PM Muhyiddin on inclusive approach towards 2021 budget
08 November, 2020
The Malaysian government has taken a new, inclusive approach towards budget 2021, including consultations with the opposition, which is “for the benefit for all”, said Prime Minister Muhyiddin Yassin on Saturday (Nov 7).
Mr Muhyiddin, who was speaking within an exclusive interview with Malaysian television channel Astro Awani, was asked to touch upon the government's decision to get input from opposition lawmakers on the formulation of this budget, the 1st time in the country’s history.
Mr Muhyiddin said: "I'd like to see this new approach as something is for the benefit for us all. It isn't the government's budget, it's a cover the people."
He said that the government was keen to get different input from all over the country, which included consulting opposition leader because of their views and perspectives.
"We are open minded. We are inclusive inside our method of this budget. We admit that people don't know everything, and we wish input from everyone like the opposition," said Mr Muhyiddin.
"To adopt an inclusive approach is a great thing. No matter who, regardless if they are opposition, but we listen and consider. If they're good ideas, we are able to consider them," he added.
The prime minister also outlined that was "just the first step" in relating to the opposition to help the government overcome issues faced by the people.
Mr Muhyiddin said he would prefer to invite opposition leaders to be portion of the country's Economic Action Council, which he chairs, as well as invite them to donate to the government's special meetings how to combat COVID-19.
"(That is) an opportunity for the opposition to give their views. If indeed they say these steps (the federal government have formulated) are not effective, I would like to hear their suggestions. It isn't a question of giving them credit but it's for the advantage of the people," said Mr Muhyiddin.
"We will take one step at a time. But what's most significant is the plight of the people, not political issues. What's important now is COVID-19 and economic revival," he added.
This is Mr Muhyiddin’s first interview on national television because the 2021 national budget was tabled on Friday afternoon by Minister of Finance Tengku Zafrul Tengku Abdul Aziz.
Tengku Zafrul unveiled an expansionary budget intended for helping Malaysia get over COVID-19, allocating RM322.54 billion (US$77.9 billion) of the gross domestic product (GDP) for total expenditure in 2021. The amount represents the largest budget expenditure in Malaysia's history, added Tengku Zafrul.
BUDGET TARGETED AT ECONOMIC BOOST: MUHYIDDIN
After the budget was tabled, opposition leader Anwar Ibrahim said that the key weakness was that there have been no plans for just about any boost or stimulus for monetary recovery.
When asked to respond to Mr Anwar's comments, Mr Muhyiddin highlighted that with the budget that was tabled, the government is projecting the country's economy will grow between 6.5 % and 7.5 per cent next year, a sharp rebound from the existing situation.
Malaysia's economy is projected to contract 4.5 per cent this year.
"A big part of what we've a proposed is that you will have a boost for economic recovery ....this strategy was based on ideas from specialists both in the united states and overseas," said Mr Muhyiddin.
"You want to boost growth from minus to plus, that's a major boost," he added.
MORE FLEXIBILITY FOR ALL THOSE IMPACTED BY COVID-19
Besides that, Mr Muhyiddin was also asked to touch upon calls by Malaysians who are impacted by COVID-19 to withdraw money from Account 1 of their workers Provident Fund (EPF).
The EPF is a compulsory savings plan and retirement planning private sector staff in Malaysia.
Mr Muhyiddin said the federal government was reluctant to permit workers to withdraw out of this account but he noted that the calls have been "strong".
"I told the finance minister that we have to consider this. But we are allowing the withdrawals to be done via a targeted approach, focusing only on anyone who has been impacted," said Mr Muhyiddin.
He was also asked to react to requests from Malaysian individuals and companies, who would like extensions to the loan repayment moratorium.
Mr Muhyiddin maintained that the federal government has held discussions with the national bank, and also have urged the lender "to become more open" to individual requests for moratorium extensions.
The Southeast Asian nation has been hit hard by the COVID-19 pandemic.
On Saturday, Malaysia reported 1,168 new coronavirus cases, taking the country's tally to 39,357 infections, as the federal government extended a partial lockdown order to more states until Dec 6.
This can be a fifth consecutive day Malaysia has registered more than 1,000 new daily infections.
To mitigate the impact of the pandemic, Tengku Zafrul has proposed in the budget that a total of RM45 billion of fiscal injection be allocated under a COVID-19 Fund, a non permanent fund which spans over 3 years until 2022.
Of the total, RM38 billion will be disbursed this season, while the balance of RM17 billion is likely to be spent next year on wage subsidy programmes, small scale infrastructure projects, small- and medium-size enterprise (SME) soft loans and food security, the federal government said.
In a statement issued following the budget was tabled, Mr Muhyiddin said the national cover 2021 was formulated predicated on the principle of protecting persons and businesses to allow them to rebound from COVID-19.
However, opposition leader Mr Anwar was of the thoughts and opinions that the budget didn't explain a clear picture about how to stimulate and develop the economy which includes been badly afflicted by the crisis.
"It didn't address the problem of unemployment and helping staff who've lost their jobs therefore of the pandemic," he said in a video posted on Facebook.
He added that among other issues he'd raise through the debates include the RM80 million allocation to revive the Special Affairs Department (JASA), that was previously disbanded by the Pakatan Harapan government.
"In comparison with the allocation for the disabled and the indegent, (they only receive) a little sum," he said.
Debates on the budget will begin on Monday and are scheduled to end on Dec 15.
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