FACING CREDIBILITY CRISIS FOR HIMSELF & HIS BLUE-EYED BOY AZMIN, MAHATHIR LAUNCHES SPV2030 BUT TO MUTED RESPONSE: PM HINTS OF NEW TAXES ‘THAT WON’T BURDEN THE PEOPLE’ – BUT IS THERE SUCH A THING & WILL MALAYSIANS BE GULLED BY HIM AGAIN WHEN HE CAN’T EVEN KEEP HIS OWN MANIFESTO PROMISES, MADE ONLY HALFHEARTED EFFORTS TO PUSH THROUGH HIS PREVIOUS INCLUSIVE VISION 2020 PLAN

THE architect of Vision 2020, Dr Mahathir Mohamad, said the Shared Prosperity Vision 2030 (SPV2030) he launched today will be better than the ideal he introduced nearly 30 years ago during his first tenure as prime minster.

Vision 2020 cannot be achieved because policies and strategies had been wrongly implemented in the last 15 years, said Dr Mahathir, who stepped down as prime minister in 2003, and took up the mantle again last year.

“Vision 2020 was not achieved because for the last 15 years, the wrong policies and strategies were implemented by the previous two administrations,” he told reporters today after launching SPV2030 at the KL Convention Centre in Kuala Lumpur.

“They did not follow the vision that is to make Malaysia a developed country by 2020.”

He said instead of raising income and productivity, the previous government under Barisan Nasional had resorted to cash aid and high salaries.

“As such, many people remained poor as they became reliant on cash handouts and did not progress based on their own efforts.

“Malaysia will fall short of achieving Vision 2020’s target of becoming a developed nation next year.”

But the SPV will see people being trained to become more capable of seizing economic opportunities, he added.

The SPV has seven strategic thrusts and 15 key economic growth activities.

The seven thrusts are restructuring business and industry ecosystem, boosting key economic growth activities, human capital, improving employee compensation, social wellbeing, regional inclusion and social capital.

Among the 15 key economic growth activities are making Malaysia an Islamic Finance Hub 2.0, digital economy, industrial revolution 4.0, Asean hub, halal food hub, logistics and transportation hub, focusing on renewable energy and diversifying downstream products under Commodity 2.0.

The SPV2030’s key targets are:

– To achieve gross domestic product (GDP) of RM3.4 trillion (nominal) in 2030 with an average growth rate of 4.7% per annum.

– To raise SMEs and micro businesses contribution to GDP from 20% to 50%.

– To raise B40 group income level to a decent living income of no less than RM5,800 per month.

– To raise compensation of employees to GDP from 35.7% (2018) to 48%.

– To raise contribution of Bumiputera enterprises to GDP to 20%.

On the target gross domestic product of RM3.4 trillion (nominal),with an average yearly growth rate of 4.7% by 2030, Dr Mahathir said these are nominal values and that the real aim is to increase income and purchasing power.

He said there are many countries where the nominal income figures are high but the people lack buying power due to the lack of money in absolute terms and the high cost of living.

“This time we want to increase income, followed by increase in buying power.”

Dr Mahathir reiterated that contracts, licences and approved permits would only be given to capable parties to prevent failures and misappropriation.

He said that in the past, those who were awarded these sold them to third parties. The government will try to ensure that such practices do not occur under SPV2030.

“Although the opportunities are limited the results will be good as we will only be giving it  to those who are capable,” he said.

He said the government would revoke what it had awarded if it was sold.

Dr Mahathir called on the private sector to play a role in achieving the aspirations of SPV2030.

He said the private sector too should abide by the policies of SPV2030 when giving out contracts.

“The private sector should also do that. For example, they should not only give contracts to their own people, the Malays give to the Malays, the Chinese give to the Chinese. It should not be like that.

“It should not be, this is a Malay company, a Chinese company or an Indian company.”

The private sector can help to correct the imbalance, he said.

Possible new taxes but won’t burden the people, says PM

THE country’s taxation system will be improved and updated that may include the introduction of new taxes, said Prime Minister Dr Mahathir Mohamad.

“When we introduced the tax system, it was not done in an organised and orderly manner, hence many have escaped from paying taxes,” he told reporters after launching the Shared Prosperity Vision 2030 in Kuala Lumpur.

He said improvisations will be done to the taxation system with the relevant agencies such as the Inland Revenue Board.

“Maybe we will introduce new taxes that will not burden the people,” he said in response to a question on Putrajaya’s plans for taxation and whether that will include reviewing the revival of the goods and services tax (GST).

Dr Mahathir had said Putrajaya would consider bringing back the abolished GST to replace the sales and services tax (SST) if it was what the people wanted.

“If the people want it (GST), we will study whether it is better than the current SST.”

He had said if the people believed GST was better, the government would conduct the study.

However, he added it was too late to reinstate the GST into Budget 2020 that would be unveiled next week.

THE MALAYSIAN INSIGHT