PH's Budget has a few goodies despite inheriting RM1t public debt

GEORGE TOWN: Pakatan Harapan's maiden national Budget which will be tabled in parliament on Friday should contain a few goodies for the people despite the new government inheriting a public debt of over RM1 trillion.
Klang MP Charles Santiago expects the Cost of Living Aid (BSH), which was renamed from the Bantuan Rakyat 1 Malaysia or 1Malaysia People's Aid (BR1M), to continue.
The aid has become a necessity among the low-income group and with the country continuing to grapple with living costs issues, the BSH handout would be considered strategic and a goodwill gesture on the part of Pakatan, said Santiago.
In its last rollout before the Hari Raya Aidiladha celebration in August, it was reported that about 4.1 million people were entitled for the aid, and it cost the federal government up to RM1.6 billion.
"It remains to be seen how much the government will allocate for BSH now," Santiago said.
The government needs to recognise that it has one of the largest civil service in the region — some 1.4 million public employees; hence there is a need to ensure that the government has adequate resources to pay their salaries.
According to Santiago, the BSH can stimulate the retail sector as people will spend on essential items, and in turn create a robust macro economic setting.
Santiago also expects the Budget to offer some "pump priming" to be undertaken whereby the government will invest in areas which can generate multiplier effects to the economy.
He sees education and technology, particularly in the green tech sector to benefit from such initiatives.
Santiago said Finance Minister Lim Guan Eng will use the Budget to send across a message that Malaysia continues to survive despite the issues of debt.
"Actually, all countries deal with debts; it depends on the quantum level but we should be able to manage despite the various challenges."
The government would also want the people and investors to know that it was prudent, and will only spend wisely unlike in the past, he said.
Personally, Santiago hopes that more funding can be allocated for Technical Vocational Education and Training (TVET) so new skills can be acquired and applied.
The government must also offer more incentives and funding to acquire new technologies to provide value-added services to the economy, Santiago said.
He also expects the Budget to contain initiatives on how to weather the living costs issue, which has been made worst because wage increment has not grown in tandem with the rise in consumer goods.
Most importantly, Santiago said that people should be more concerned with the outlook of the 11th Malaysia Plan, which was recently reviewed.
"We need a long-term vision to arrest the deficiencies incurred in the past."
To position Malaysia on a better footing will take time and patience, said Santiago.