Image credit: Malay Mail
PUTRAJAYA: Malaysia will table its "most important" annual budget on Friday, with preserving people's lives and livelihoods, and the economy topping the priority, according to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
Tengku Zafrul is hopeful of a good recovery next year, although that would hinge on how the government manages the double whammy of economic and health crises.
"I think this is the most important budget in our history. It will be different from the previous ones because we are going through the worst crisis. It's a combination of economic crisis and health crisis. The whole world is facing the same problem.
"This budget is very crucial because 2021 is the year we hope we can show some good recovery. But it's all depends on how we manage the crisis," he said in an interview with the New Straits Times on Monday.
Tengku Zafrul said next year's budget would likely be bigger than the 2020 Budget as the government planned to allocate more for development expenditure (DE) to create greater multiplier effect over the long term.
For 2020, the government allocated a total of RM297 billion for the federal budget, RM241 billion of which was for operating expenditure (OE) and RM56 billion for DE.
The 2020 Budget is the second largest since 2011.
"Next year's budget will be different because its focus is going to really save the rakyat and the economy. The focus is on people's lives and livelihoods because of the crisis that we are going through.
"Typically, budget is defined as allocation but this time, it is a combination of how we find solutions and grow the economy during the Covid-19 crisis."
He added that the expectation was high as a lot of people had been affected by the crisis.
"We need to make sure that our economy remains intact and people stay safe. We have to find ways to balance these two.
"We have seen some good recovery, but what is important now is that we sustain this and the only way to do this is to contain Covid-19 cases."
Tengku Zafrul said so far the government had introduced four "mini budgets" or economic stimulus packages.
They are Prihatin, additional Prihatin SME Economic Stimulus Package, Penjana and Kita Prihatin, involving a fiscal injection of RM55 billion by the government which is almost the same size as the DE under the 2020 Budget.
Tengku Zafrul also called for more cooperation from the private sector to help combat the crisis.
"Our message is clear. The government will not compromise when it comes to saving the rakyat and the economy. This is the time for everyone to work together.
"I have mentioned about GLCs (government-linked companies) and GLICs (government-linked investment companies) helping to rebuild the economy.
"I believe the private sector should join in, too, for the country's sake since we already have the commitment from the GLCs and GLICs."
He said to be fair, some in the private sector had already contributed.
In Prihatin and Penjana stimulus packages, telcos have provided free Internet valued at RM600 million.
Tenaga Nasional Bhd, together with the government, offers discount for electricity bill valued at RM1.8 billion.
"We also work with Shopee and Lazada under an e-commerce initiative. But the main storyline here is for the government to do everything to save what we have today.
"When the economy is back on its growth path, we need to make sure that the base is still there, the capacity is still there for strategic industries to restart. For the rakyat, we need to make sure that these industries are able to create jobs and that is the key for economic recovery."
Source: https://www.nst.com.my/news/government-public-policy/2020/11/637908/budget-2021-malaysia-awaits-most-important-budget-ever