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Friday, July 29, 2011

Stop relying on government, Najib tells BN parties


July 29, 2011

Najib said today BN should use political avenues to help the public rather than resort to the current practice of pressuring the various ministries to act. — file pic
KUALA LUMPUR, July 29 — Datuk Seri Najib Razak told his Barisan Nasional (BN) coalition today that it must work to solve problems faced by the public without resorting to government channels.

The prime minister said that under its new political model, the ruling coalition must strive to use political avenues to help the public rather than the current practice of pressuring the various ministries to act.

Najib said that “in the current landscape ... political parties can act through political channels” to request help from partners and “take the initiative to have programmes.”

His administration has been committed to trimming the budget deficit from a two-decade high of seven per cent in 2009 to 5.4 per cent this year but surging inflation — especially in urban centres where his coalition is weakest — has forced Putrajaya to rethink its timetable for subsidy cuts.

After hitting a two-year peak of three per cent in March, the consumer price index has continued to rise, hitting 3.5 per cent in June as the government increased fuel, electricity and sugar prices to prevent the subsidy bill from doubling to RM21 billion.

The Umno president is also expected to call for general elections soon despite his mandate only expiring in early 2013.

Both government and opposition lawmakers have said that Najib should announce an election budget for next year as sustaining subsidies continues to put a strain on the Treasury.

Pressure from hardline Malay ground to maintain Bumiputera quotas is also threatening the prime minister’s economic transformation programme that aims to double per capita income by 2020.

Observers believe a new five-year mandate will give Najib some breathing space to execute his economic reforms to move Malaysia out of the “middle-income trap,” which in turn, will allow him to ease the burden of subsidies on the budget.

Launching the BN Youth Home Owner Programme Exhibition (Hope) today, Najib said that such initiatives, which pulled together stakeholders such as developers, financial institutes and prospective homeowners, were an example of how “BN is capable of fulfilling the hopes of the public.”

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