PUTRAJAYA 30/05/2018. Prime Minister, Najib Razak giving a press conference after cabinet meeting at Prime Minister Office, Putrajaya. MALAYMAIL/Azneal Ishak.
MALAYSIA will cut back spending next year, including by gradually lowering the rate of welfare payments, while increasing its income from tourism receipts, among others, to pay its debts, said Prime Minister Dr Mahathir Mohamad.
He said a RM1 trillion debt left the country with very little to spend, but he was optimistic the cutbacks would soon yield positive results for the economy.
“The people must accept that we are not doing well,” Dr Mahathir told The Malaysian Insight.
It’s not all doom and gloom, however, even though it’s time to tighten the belt, he said.
“There are other means of earning money but more importantly we need to have a budget that is thin.”
Barisan Nasional had allocated RM280 billion to Budget 2018, which was more than RM20 million higher than Budget 2017. Both budgets set aside RM46 billion for development.
Pakatan Harapan will table its first national budget, for 2019, in November.
The new government is looking at tourism and palm oil production to stimulate the economy and to fill the nation’s coffers.
Dr Mahathir said the government would be courting the tourists as well as foreign investors in the hospitality sector.
“And tourist business is cash business. In fact, at one time, tourism earned us (the most money) after Petronas.”
The tourism and hospitality industry brought in RM182.4 billion last year, making up 14.8% of the country’s economic output or gross domestic product (GDP) in 2016, and was the third largest contributor to the economy.
Meanwhile, Dr Mahathir said, the country’s oil palm plantations were still doing well and could be tapped for revenue.
“We have done well in (in the area) and we are very comfortable with that.
“Any land that you have, you plant oil palms, you get money”
This was unlike manufacturing, which was highly competitive, he said.
He said other domestic industries such as rubber and furniture were also thriving and had potential for expansion to increase exports.
Palm oil, rubber, cocoa, and timber exports amounted to RM121.99 billion in 2016 and made up 15.5% of total exports.
Oil palm plantations alone made up 7.4% of the GDP.
The prime minister said national oil company Petronas continued to contribute to the national income although it was not earning as much as it did when global oil prices were about US$120 (RM480) per barrel.
The prime minister said national oil company Petronas continued to contribute to the national income although it was not earning as much as it did when global oil prices were about US$120 (RM480) per barrel.
“Now it is US$70, so we earn less, but we still earn. But you cannot take all of it as profit because Petronas needs to invest continuously.”
The prime minister blasted the previous BN government for its open-door policy to allow foreign imports, especially cars.
He said the government must protect its infant industries, like other countries did via import taxes.
“But here we are open. Any make of cars in the world, we have.”
Dr Mahathir said it was this open policy that had killed off Proton, which used to have 80% share of the local car market. its market share is now 17%.
“Malaysians must change their mindset as consumers and start accepting local products to spur growth of the economy.”
Malaysians should make sacrifices like the Japanese, Koreans, and now, the Chinese did.
“The Chinese mentality is different, they want to produce the things they import, and they do it very well.”
The cars they made were now as good as other cars made elsewhere, he said.
As long as Malaysians continued to send money out of the country by buying foreign goods, he said, the country will never grow.
BR1M payouts will be reduced before they are discontinued, says Dr Mahathir
IT will not be a popular decision among the 7.2 million recipients as Putrajaya slowly reduces the 1Malaysia People’s Aid (BR1M) payouts before weaning it out altogether, said Prime Minister Dr Mahathir Mohamad.
Blaming the Najib administration for “spoiling” the people, Dr Mahathir said the people should stop depending on the government and believing that they are entitled to money without doing any work.
“Najib (former prime minister Najib Razak) has spoiled the people by making them think that without doing any work the government will give them money,” Dr Mahathir told The Malaysian Insight.
“Now we cannot give them the money because we are not stealing the money, but they still want the money (BR1M).”
He pointed out that even fishermen were getting paid RM300 a month when they are not civil servants. All these, he said, was simply to buy over people with “stolen money”.
BR1M was introduced in 2012 and the amounts were increased yearly. This year, however, there was no increase. Households earning below RM3,000 a month will receive RM1,200, while those earning between RM3,000 and RM4,000 will receive RM900.
Single individuals earning RM2,000 and below will continue to receive RM450. In total, RM6.8 billion was allocated in this year’s budget for the 7.2 million recipients.
After Pakatan Harapan took over federal power in GE14, it announced that BR1M would be replaced. Dr Mahathir had then said the mechanism for the new aid, called Bantuan Sara Hidup Malaysia (Cost of Living Aid), will be totally different from BR1M. There, however, has been no further announcement on the new mechanism.
The third stage of the Cost of Living Aid 2018 payment was paid before the Hari Raya Aidiladha celebration. The payment, involving an allocation of RM1.6 billion, was paid out to almost 4.1 million recipients.
“But the people still want BR1M. They have become very dependant on the government and that is very bad.
“Any country where the people think that the government owes them for doing nothing, will become bankrupt,” Dr Mahathir said.
He pointed out that a household earning RM4,000 a month, will earn RM48,000 a year. He then questioned what was RM500 (BR1M) to this household.
“Why do you give them RM500? Because you want to be popular. And strangely enough people accept this. But I know in Ipoh (Perak), there are people who refused to accept BR1M.”
He said the new government’s objective now is to create as many jobs as possible through domestic and foreign investments, to make Malaysians more independent.
“We will slowly reduce what we can give them (BR1M) and explain to them our objectives.
“I have always talked about crutches, throw away your crutches, walk on your own feet. Then you become strong and you will do well.
“If you mollycoddle the people, they become weak,” Dr Mahathir added.
– https://www.themalaysianinsight.com
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