KUALA LUMPUR: Budget 2017 is a “commitment” budget. Prime Minister Datuk Seri Najib Razak yesterday dismissed claims by some commentators that he will be tabling an “election” budget today.
“This is a ‘commitment’ budget. Others may put short-term political gain first, but this government will not,” he said in a statement issued by the Prime Minister’s Office yesterday. His statement was also streamed live on his official Facebook page and Twitter.
The prime minister said the government is committed to ensuring that the economic fundamentals of the country remain resilient and strong, including its policy on deficit targets, spurring economic activity and the long-term health of the financial system.
“We commit to being prudent and creative in optimising expenditure, to ensure delivery for the people. And we commit to a comprehensive, inclusive budget that will fulfil our promises to the people,” he said.
Najib, who is also the finance minister, said the main focus areas of Budget 2017 that he will deliver to Parliament today include raising the disposable income of the rakyat and encouraging upscaling, reskilling and entrepreneurship training.
“[Other areas to focus on include] mitigating the rising cost of living, providing more affordable houses and funds for maintenance, substantial measures on education, and allocations for the provision of quality healthcare services,” he said.
As such, the prime minister said, he would make further announcements on infrastructure, development, public transport and health, fiscal incentives for small and medium enterprises, and human capital and skills training.
Najib said the government is committed to continuing to ensure that economic indicators — such as inflation, growth rates and debt levels — remain strong and resilient, reflecting the core fundamentals of the economy.
He is expecting Malaysia’s economic growth rate to accelerate to up to 5% next year, as it is on course to grow between 4% and 4.5% in 2016.
“Despite fiscal pressures, inflation has been kept at low levels, and Malaysians as a whole are better off today than they were a year ago. Indeed, we are now an upper middle-income country.
“We continue to fulfil our promises to the people in a manner that is fair and inclusive. We are on the right trajectory, with the economy expected to improve still further in 2017 with growth of up to 5%,” he said.
“Despite the challenging global environment, the measures we introduced in last year’s budget have helped ensure that the economy remains resilient and continues to grow. We have a plan, and it is working,” he said.
Still, Najib said, the government recognises that there are challenges ahead.
“We must put in place policies that address long-term structural changes, and will continue our efforts to improve the Bottom 40, as well as the Middle 40. Our focus is on both the people economy and the public economy. The overall happiness and welfare of the people are key objectives,” he said.
“The safety and security of all Malaysians remain my biggest priority. We will intensify our efforts and allocate more resources to our fight against extremism and crime,” he added.
Analysts are expecting Najib to announce a slew of populist measures including cash aid aimed at shoring up support from voters, as there is speculation that the prime minister might call a snap election early next year.
Earlier in a separate Facebook post, Najib lashed out at the opposition’s claim that Malaysia would go bankrupt under the Barisan Nasional government under his leadership, noting that the the ruling government has proven that it is capable of raising the 1Malaysia People’s Aid (BR1M) payment each year since it was introduced in 2012.
“The fact is that we managed to increase the payment of BR1M from RM500 in 2012 to RM1,050 this year, and the criteria for eligibility to receive the BR1M payment had been widened to benefit more people,” he said, adding that he would announce the payment of BR1M and several initiatives in Budget 2017.