A continuation of Pakatan manifesto, the 11th Malaysia Plan triggers the onset of economic pessimism

I doubt if the mid-term review report of the 11th Malaysia Plan is just a continuation of the Pakatan election manifesto, the same old tune with nothing new. What is more worrying is that the government still sticks to reviving the Bumiputera agenda and sprees of an austerity practice. This will undoubtedly lead to the onset of economic pessimism. 

I could not understand Tun Dr Mahathir Mohammad’s remarks that operational expenditure could not be slashed, so development expenditure has to be sacrificed! This shows that Pakatan government is not determined to reform, where it finds no ways to reduce the operational expenditure of various government departments, and can only slash the development expenditure. If the government is unable to stimulate domestic demand, the fiscal deficit will definitely be higher.

Although the Pakatan government has mentioned earlier on the need to slim down the Cabinet and civil service, but there has been no progress thus far, with loud thunders but small raindrops. The government’s operational expenditure has always accounted for a large proportion of the annual budget; sometimes it is even higher than expenditures from other aspects. To cope with the huge operational expenditure, the government can only collect various taxes in the form of petrol and toll fee hike to increase its revenue. Or borrowing more to support the ballooning civil service. Therefore, the tax collection provision is expected to expand after this. 

I also doubt the government’s earlier announcement of slashing the development expenditure from RM260 billion to RM220 billion, as the number should not be lesser than that. From the mega projects axed, such as High Speed Rail, ECRL and MRT3, the costs saved should have exceeded RM40 billion. Therefore, is the Pakatan government providing incorrect information here?

In the 11th Malaysia Plan review report, the government’s pro-Bumiputera agenda was actually a repetition of the New Economic Policy (NEP) from the 1970s to 1990s. The focus on the special privileges of a specific ethnic group has further impeded the economy. The rakyat is lost with Malaysia walking the old path again.

The Prime Minister Tun Mahathir has emphasised that, it is by slashing development expenditure that more money can be saved. What is worrying is that the government’s austerity practice will hamper the future economic outlook, especially with the effects of trade war between China and the United States as well as other external factors. It can be foreseen that the people will have to tighten their belt with the inconsistent government policies. In the next five years, Malaysians can expect tough time ahead.

Senator Datuk Ong Chong Swen
Wanita MCA Vice-Chairman

-MCA online-