Economist: PH must work on keeping its promises despite huge debt

Barjoyai Bardai says it will be difficult for the government to make good on its promises within 100 days, but it needs to keep working at it.

The Pakatan Harapan federal government says it needs more time to fulfil its election promises due to the country’s financial situation.

KUALA LUMPUR: An economist has urged the Pakatan Harapan (PH) government to concentrate on fulfilling the promises in its election manifesto despite the RM1 trillion national debt which it says is holding it back.

Barjoyai Bardai of Universiti Tun Abdul Razak said PH must be seen as proactively working on ways to deliver its promises to the people.

“Concentrate on programmes that can help it keep its election promises.

“PH needs to be seen to be working on it rather than saying sorry, it cannot work out the promises because it is held back by debts.”

The new government has so far fulfilled its promise to zero-rate the goods and services tax and to continue providing the people with financial aid to tackle the cost of living.

But Finance Minister Lim Guan Eng said earlier this week that the government needed more time to fulfil its election pledges as Malaysia’s financial situation was not good.

“We are still committed to fulfilling our election manifesto.

“However, we are facing huge debts and need to find stability in our finances before we can implement all our promises,” he said.

Prime Minister Dr Mahathir Mohamad had also admitted that PH would take more than 100 days to fulfil the 10 promises in its manifesto.

Speaking to FMT, Barjoyai agreed that it would be difficult for PH to fulfil all 10 promises within the stipulated time frame as it would have to make fundamental changes in order to do so.

“They need to come up with a mechanism, for example creating an endowment fund, to fulfil promises such as abolishing tolls which is a big promise.

“The government cannot abolish tolls just like that. The Employees Provident Fund owns PLUS highways – what will happen to them and our savings?”

Barjoyai said an endowment fund would allow money to be used in investments, adding that the returns could be used to write off debts and loans.

He added that PH’s promises had been made before the coalition became aware of the extent of the damage to the country’s finances.

Meanwhile, economist Yeah Kim Leng of Sunway University’s Business School said PH should prioritise the Bottom 40 (B40) group, which is the 40% of Malaysians at the bottom rung in terms of income.

“I think the government can maximise the impact of social assistance by channelling money to single mothers and families with many children.

“These groups need the government’s help the most.”

He also suggested that the government utilise technology in welfare programmes to ensure that the money reaches those who need it.

He said previous welfare programmes were too dispersed and had not targeted the B40 group. -FMT