(Updates fourth last paragraph on Nurul Izzah)
KUALA LUMPUR (Feb 12): The newly-formed Advisory Committee to Datuk Seri Anwar Ibrahim in his capacity as finance minister, chaired by Tan Sri Mohd Hassan Marican, has announced on Sunday (Feb 12), its primary roles following its first meeting on Feb 10 (Friday).
In a statement, Mohd Hassan said the committee’s primary role includes advising the minister “on ways and means to increase the nation’s revenue base and reduce the operating expenditure (opex)”.
The advisory committee will also advise on “reviewing and restructuring existing subsidies, and the provision of more holistic social protection”, the statement said.
Additionally, the committee will advise on “matters related to government-linked companies”. This includes “determining their relevance in the current context, and consolidating them where appropriate”, the statement said.
The committee will advise on matters related to national debt and good governance, it added.
“The advisory committee reports directly to the finance minister, and shall meet as frequently as possible, depending on requirement,” Mohd Hassan said.
Anwar, who is also prime minister, is set to table a revised 2023 federal budget on Feb 24, where economists anticipate more clarity on the government’s fiscal consolidation path.
Earlier this month, the World Bank said that Malaysia should explore new sources of revenue, and that its strategy of achieving fiscal consolidation by reducing spending is challenging.
Government revenue is expected to resume its declining trend in 2023 on moderating crude oil prices, the World Bank said in its Malaysia Economic Report.
While the oil-producing nation benefited from the high oil prices in 2022, its subsidy bill also grew to almost RM80 billion or 27% of opex last year, to keep energy prices low — the bulk of it through blanket subsidies to cap petrol and diesel prices.
Debt service charges exceeded RM40 billion in 2022, and is expected to rise further to 17% of opex in 2023, according to projection by the previous administration. Over 40% of the opex is allocated for emoluments and retirement charges, the projection showed.
As the government sets out to explore new growth opportunities, the prime minister on Feb 2 said that GLCs and government-linked investment companies (GLICs) play a role in catalysing investment for new growth sectors and implementing corporate social responsibility, among others.
A pre-Budget meeting with GLCs and GLICs also touched on commitment to enhance sustainability of the oil palm industry and to “drive renewable energy”, he said at the time.
Nurul Izzah, Khairil Anuar Ramil to co-head committee secretariat
Meanwhile, the advisory committee will be supported by a secretariat, which is located at the Petronas Twin Towers, the statement said.
Nurul Izzah, who has resigned as Anwar’s senior economic and finance advisor in his capacity as prime minister, will co-head the secretariat.
“Tan Sri (Mohd) Hassan in his capacity as the chairman of the advisory committee has also invited Puan Nurul Izzah Anwar to co-head the secretariat, together with Encik Khairil Anuar Ramli,” the statement said.
Aside from Mohd Hassan, who is also adviser to national oil firm Petroliam Nasional Bhd (Petronas), the advisory committee comprises four other individuals.
They are: Sarawak Energy Bhd chairman Datuk Amar Abdul Hamed Sepawi; FPSO Ventures Sdn Bhd executive chairman Datuk Ahmad Fuad Md Ali; Asia Europe Institute professor of economics Datuk Dr Rajah Rasiah; and Sunway University Business School professor of economics Dr Yeah Kim Leng.