Budget 2012: Reducing inflation, enhancing well-being of rakyat

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KUALA LUMPUR: The RM230.833 billion Federal Government Budget 2012 proposals, unveiled on Friday, Oct 7, will focus on seven core areas including reducing the impact of inflation while focusing on the rakyat, especially the lower-income group and those in the rural areas.
The Economic Report 2011/2012 said the theme of the Budget 2012 would be “Transformational Budget: Welfare for the rakyat, well-being of the nation”.
The Budget would focus on the concerns of the rakyat, including the effects of a weak external sector on the economy though the implementation of several programmes including the Economic Transformation Programme, Government Transformation Programme and 10th Malaysia Plan.
The seven key areas are:
1) Reducing the impact of inflation;
2) Enhancing the well-being of the rakyat;
3) Accelerating rural transformation;
4) Reinvigorating investment activities;
5) Innovating Malaysia;
6) Developing human capital; and
7) Improving public service delivery.

To reduce the impact of rising price on the living standards of Malaysia, especially the low and middle-income groups, the government will maintain the subsidy programme, but in a more targeted manner.
“Concurrently, assistance to the low and middle-income groups will be provided to enhance their disposable income,” it said. The report said steps would be taken to provide affordable goods and food away from home to all Malaysians.
As for the supply of agriculture products, long-term programmes would be launched to increase the supply.
To improve the lives of the rakyat, the priority would be to provide affordable and quality homes to the low and middle-income group.
“Private sector-led schemes will be eligible for government’s assistance in the form of provision of land, facilitation fund and green lane treatment to fast track the approval process,” it said.
The land public transportation system would also be further improved. The government would also allocate funds to develop growth corridors across states and regions in the country to ensure equitable distribution of investment, job opportunities and wealth.
To speed up rural transformation, the report said the government’s plan was to see these rural areas become thriving economic districts and reduce youth migration to urban areas.
To reinvigorate investments, the government would introduce several incentives to attract promoted investment.  It would also introduce greater competition in the economy to expand the choices or goods and services.

Related article:
Budget 2012: Highlights
Budget 2012: Wide-ranging perks to strengthen economy.
Budget 2012: Reactions from corporations.
Budget 2012: Reactions from banks, Bursa.
Budget 2012 reactions: 1MDB says incentives reflect govt's commitment.
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For the full text of the prime minister's speech, click here.