PM says he has to make unpopular decisions because he is a responsible man

While declaring that he sympathised with Malaysians over the tough times ahead,  Prime Minister Datuk Seri Najib Razak (pic) said a responsible government sometimes had to make difficult and unpopular decisions.

Najib defended the recent price hikes, saying leadership was about looking at the long term, about doing what was right and not what was popular.

"In 2009, Malaysia began a journey of economic and government transformation. As 2014 begins, we must continue to lay the foundation for the nation's continued success," Najib said in his New Year message.

Najib acknowledged that many people were concerned about 2014, worried that as Putrajaya continued to balance the national budget, household budgets would come under pressure.

He insisted that all the subsidy cuts and rate increases announced by Putrajaya thus far have been necessary.

"Putrajaya would not have signed off on any subsidy cuts or rate rises unless it was imperative. Subsidy programmes are no longer sustainable and it is time to move on. These programmes have benefited Malaysians for many years, but the population is growing and the nation is also developing," Najib said.

He said subsidies needed to be rationalised and targeted at those who are in most need, expressing sympathy for and empathy with the rakyat's concerns about 2014.

“I understand and sympathise with these concerns. Hard-working people will feel the impact of rising costs. When the media is full of red numbers and price rises, it can seem as though 2014 will bring pain without gain,” he said.

Putrajaya has embarked on aggressive cost-cutting measures after pressure grew for it to rein in a chronic budget deficit that traces back to the Asian Financial Crisis of 1997, and which has left Malaysia’s national debt just below a critical legal ceiling.

Among others, Putrajaya has reduced fuel subsidies, removed price control for sugar, allowed an increase in electricity tariffs and confirmed the introduction of the goods and services tax (GST), all within the space of four months.

The spending cuts has earned the Najib administration widespread criticism from the public, who complained against having to tighten their belts at a time when financial mismanagement and corruption still seemed rampant in the government.

Najib said the recent financial crisis was a warning about the serious consequences for nations whose finances were not built on a solid foundation.

"If investors and credit rating agencies decide that a country cannot afford to repay its debt, the cost of borrowing money will spiral out of control."

"Without access to credit, there will be huge implications for a country and its people," Najib said, pointing out that more than half of the young people in Europe were unemployed.

"Our commitment to development expenditure has grown and we must manage our fiscal position to ensure the stability of Malaysia's economy” he said.

Najib said difficult decisions had to be taken to keep the country's borrowings low and maintain investor confidence, which was crucial to keep Malaysia's economy strong and growing.

However, he assured the public that Putrajaya would do everything it could to ensure that the impact on the rakyat was minimised.

The Performance Management Delivery Unit (Pemandu) is coming up with new ideas to ease the rakyat's burden and put mechanisms in place to cushion the public from rises in electricity and toll rates.

Najib gave assurances that Putrajaya would do its best to ensure that the rises were proportionate, pointing out that the government still subsidises petrol and electricity bills.

He pointed out that from last week 7.9 million recipients in households earning under RM4,000 per month were eligible to apply for the new Bantuan Rakyat 1Malaysia payments.

"We are opening new 1Malaysia shops, to help with the cost of daily goods, and new 1Malaysia clinics to provide affordable healthcare."

Najib defended his Chinese tsunami comment which he made on election night in May this year, explaining that he meant a wave of Chinese support had been washed away from Barisan Nasional.

He said it showed how polarised Malaysia could be if some people read too much into his comments.