KUALA LUMPUR (March 6): Putrajaya’s plan to consolidate its fiscal deficit to 3.2% by 2025, from the forecasted 5.0% this year, is deemed unrealistic, given that the country is still recovering from the pandemic, while the public and businesses remain in need of government aid.

“Current geopolitical situation also resulted (in) uncertainties to oil prices and negatively affected the country’s income, including limiting the capacity of government aid to the people,” said former prime minister Tan Sri Muhyiddin Yassin in Dewan Rakyat during his debate on the revised Budget 2023 on Monday (March 6).

Muhyiddin [Bersatu-Pagoh] said with 99% of government revenue being spent on operating expenditure (OE) according to the revised Budget 2023, it indicates that Putrajaya is facing limited and concerning fiscal health.

Although Malaysia’s economy recorded an 8.7% gross domestic product (GDP) growth in 2022, Muhyiddin said this figure does not reflect the actual economic situation, especially when the general public still suffering from rising cost of living.

“How will the people deal with the situation of double spending ahead of the reopening of schools, the month of fasting (Ramadan) and preparation for the approaching Eid al-Fitr (Hari Raya Puasa)? The people have to go through all these under the burden of the cost of living, which continues to increase, and the rate of inflation is high.

“We did not hear as to what the real solution to the problem of the cost of living of the people is, from the tabling of this Budget,” he said.

Muhyiddin also questioned the revised Budget 2023’s estimate of a lower subsidy of RM64 billion for 2023, compared to RM80 billion last year, which he thinks may result in higher inflation this year.

“The average poor citizen is still struggling to put food on the table. The current government’s commitment is to take a progressive approach when it comes to targeted subsidies, but I noticed there is still no strong mechanism in terms of its implementation,” he said.

On the Employees Provident Fund, Muhyiddin said the government’s proposal to credit RM500 into Account One with less than RM10,000 balance for those aged between 40-54 will only benefit a small group of contributors.

“Contributors under the age of 40 are denied their right to receive the same assistance,” he said. 

“The average contributor’s request to withdraw EPF savings is also ignored. It is clear that the government today does not listen to the people who are being squeezed by the burden of the high cost of living.

“It is true that EPF is meant for retirement savings, but what is the point of talking about old age, if the people do not have money for their daily needs today,” he added.

Muhyiddin also touched on the government’s intention to consolidate Yayasan Pelaburan Bumiputera, Yayasan Amanah Hartanah Bumiputera and Yayasan Ekuiti Nasional.

These three entities have different functions in improving the socio-economic status of the Bumiputera community, in terms of promoting savings of funds, ownership of property and equities.

Muhyiddin was concerned that a merger would blur the distinguishing features of these three entities and further affect Bumiputera’s wealth accumulation.

Additionally, Muhyiddin questioned the government’s move to discontinue the waiver of RM8 billion debt by Felda settlers, on the reason that it may affect Felda’s cashflow.

“I don't think the debt waiver initiative implemented by the former Perikatan Nasional administration had a big impact on Felda’s cashflow because those were bad debts, on top of that Felda have also issued RM9.9 billion worth of sukuk guaranteed by the government,” he said.

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