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PUTRAJAYA, May 10 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak
said Budget 2012, to be tabled in Parliament on Oct 7, would be inclusive,
people-centric and accelerate the transformation efforts.
It would be another milestone towards a developed and high income economy by
2020, he said.
"Let us work together in making this a reality," he added, in his opening
remarks at the Budget 2012 Consultation here today.
He said the formulation of Budget 2012 would be challenging.
"We have to rise to the occasion and come up with bold and innovative
approaches and solutions," said Najib, who is also the Finance Minister.
He said the focus would be on accelerating the transformation efforts
towards enhancing the growth momentum and sustaining the well-being of the
people.
Last year, the government allocated RM212 billion for the 2011 Budget, which
was 2.8 per cent higher than the allocation for 2010. Of the amount, RM162.8
billion was for operating expenditure and RM49.2 billion for development.
Najib said the government had put in place a strong policy framework through
the New Economic Model (NEM) to transform the nation into a developed and
high-income economy that is inclusive and sustainable by 2020.
He also said the 10th Malaysian Plan articulates medium-term strategies
while the Economic Transformation Programme (ETP) and Government Transformation
Programme (GTP) lay a strong foundation for economic and government
transformation.
The Prime Minister said these policy initiatives were anchored by the
guiding principles of 1Malaysia, where every Malaysian had a place and role in
"this great journey of transformation".
"We now have to deliver on the expectations created by this policy
framework. The key word is implementation. I assure you that the government is
committed towards accelerating the transformation process," he added.
Najib was also pleased with the remarkable progress of the GTP and ETP.
He said the GTP had brought about significant tangible results in reducing
crime, poverty and corruption as well as improving access to basic
infrastructure, education outcomes and urban public transport.
"While we can be proud of these achievements, more needs to be done. In this
regard, the government will do its utmost towards delivering the six national
key results areas (NKRAs) for the people," he added.
On the ETP, Najib said since its launch on Oct 25 last year, 54 entry point
projects (EPPs), representing 41.2 per cent of the total 131 have commenced
operations.
"The investments totalling RM106.4 billion are expected to increase the
Gross National Income (GNI) by RM153.8 billion and create 298,865 employment
opportunities.
"This is a significant achievement in such a short time frame and the
momentum must be sustained," he added.
He said in addition, the implementation of the mass rapid transit (MRT)
project as well as increasing investment activities in regional corridors,
especially in Iskandar Malaysia, will help sustain the growth momentum.
"We have successfully weathered the global economic recession. The economy
rebounded strongly with a Gross Domestic Product (GDP) growth of 7.2 per cent in
2010, surpassing the initial forecast of 7.0 per cent," he added.
He said that this favorable growth performance was supported by robust
domestic economic activities.
"For 2011, we are striving to achieve the 6.0 per cent growth," Najib added,
noting "there remained challenges".
On the external front, the turmoil in the Middle East and North Africa
continued to roil the global crude oil market while supply disruptions have
elevated other commodity and food prices.
"Cost-push inflation is on the rise and is a major challenge to many
countries, including Malaysia.
"The sovereign debt crisis in some euro nations poses downside risks to
global financial stability and the economic recovery in developed nations
remains subdued while Japan needs to embark on massive reconstruction in the
aftermath of the tsunami and nuclear disasters," he said.
Meanwhile, domestically, Najib said private investment as a share of GDP was
still low at 10.7 per cent in 2010 compared to 30.3 per cent prior to the Asian
financial crisis in 1997/1998.
"We need to increase trade and investment links with fast-growing Asian
countries, particularly China and India.
"We need to strengthen the skills and knowledge base of our human capital to
support the new economy," he added.
He said the government would also ensure Malaysia''s underlying
competitiveness remains intact, by focusing on high value-added activities and
productivity, while fostering and ensuring an environment that encourages
innovation and creativity.
In this regard, he added, the government would focus on assisting innovative
Small and Medium Enterprises (SMEs) while expanding access to risk capital,
especially to early stage funding.
On the fiscal front, Najib said, there was a need to remain committed to
prudent financial management to ensure fiscal sustainability.
He also said that the government is fully committed to ensuring
the people enjoy a higher quality of life.
"While we have virtually eliminated hardcore poverty, we need to address
remaining pockets of poverty in Sabah and Sarawak and urban poverty.
"Emerging challenges include the rising cost of living and affordable
housing, particularly in urban areas while the increasing cost of health
services requires our immediate and appropriate action," he added.
In this respect, Najib said the government would continue to implement
initiatives to mitigate the impact of rising food prices, as well as facilitate
the supply of affordable housing. -- BERNAMA
MAS AS
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