Snapshots
1. Kesejahteraan Untuk Semua Belanjawan Kesejahteraan 2012 is a continuation of the collective effort by Pakatan Rakyat to chart a new future for Malaysia, following the releases of the Common Policy Platform in December 2009 and the Buku Jingga in December 2010.
Kesejahteraan Untuk Semua can be only achieved with political will to effect genuine and comprehensive institutional reforms guided by the principles of transparency and good governance.
Malaysia’s diversity is our strength. Our economic growth depends on the solidarity of all people regardless of gender, ethnicity or religion. Only through a budget which is gender responsive, and one that empowers ordinary Malaysians to live a dignified life full of opportunities , will we unleash the full potential of our people.
Recognizing the inflationary pressures on the Malaysian public, Belanjawan Kesejahteraan 2012 creates growth for all through providing policies and frameworks aimed towards uplifting the 60 percent of Malaysian households earning less than RM3,000 monthly.
Introduction of minimum wage, reduction of unskilled foreign workers, upgrading of skills and productivity will massively benefit the Malaysian workforce. In particular, special attention is given to improve women’s participation in the workforce. Wage, skills and productivity will improve in tandem.
Improvements to public transport, housing and healthcare will contribute to increasing disposable income of the people. Higher disposable income will enhance domestic consumption, which is increasingly more important in the volatile global environment.
Monopolies and oligopolies will be broken up, enhancing competition while helping Malaysian businesses to reduce costs. A competitive environment will mitigate inflationary pressures and generate more choices for the people.
Therefore, the five key imperatives of Belanjawan Kesejahteraan 2012 by Pakatan Rakyat are:
2. Rich Country, Poor People? Malaysia is resource-rich. But how have the gains from our natural resources- which we have in abundance- trickled down to the average Malaysian? Presently, Malaysians are not earning as comfortably as we should be. The bottom 40 percent of households earn an average income of RM1,500 per month while the middle 40 percent of households earn an average income of RM3,500 per month.
Overall, 80 percent of households earn only an average income of RM2,500. In terms of qualification, a staggering 70% of the population has only SPM as their highest qualification whilst in terms of employment, more than a third of household heads are in the informal sector. It is not a surprise then, that income inequality in Malaysia is significantly high where the bottom 40% takes only 15% of total income while the top 20% take nearly half with 49%.
The symptom of the malaise of a trapped Middle Income nation is without a doubt present in Malaysia due to outmoded policies and poor management of the economy that favours a few. Presently, what we are seeing includes (i) the inability of a significant amount of Malaysians to cope with rising cost of living (ii) high unemployment among local graduates although concurrently, employers complain of skills and talent shortages (iii) a subsidy bill that has ballooned 10 times and (iv) both domestic and foreign investments are less than optimal, resulting in Malaysia being the only ASEAN country to experience net FDI outflows.
This doesn’t help when con-currently, the global economy is entering into another period of turbulence. Capacity of US and Eurozone to generate further growth is now severely limited. Exporting to Western nations is no longer a source of growth for Asia. We need to find new sources of comparative advantage.
Belanjawan Kesejahteraan 2012 Belanjawan Kesejahteraan 2012 by Pakatan Rakyat emphasizes empowerment, opportunities and dignity for all Malaysians whilst doing so within a financially and environmentally sustainable framework. Belanjawan Kesejahteraan 2012 chooses to focus on developing Malaysians, not mega-projects and bloated plans. It emphasizes entrepreneurship, productivity, dignified jobs, not handouts and goodies for cronies or vested interest groups.
3. Responsible spending Pakatan Rakyat will maintain expenditures at RM220 billion in 2012 but will spend the people’s money in a more responsible, accountable and effective manner. The deficit will be lowered to 4.4% of GDP from 6% in 2011. 1.6% reduction in deficit equals to RM14 billion.
While recognizing that wages can only grow sustainably with productivity gains, it is also a reality that the wage setting mechanism has become dysfunctional. Pakatan proposes that:
5. Ending monopolies Pakatan Rakyat will herald a new era by implementing wide-ranging policy and regulatory reforms to reduce cost of living, encourage SMEs and investments.
6. Ensuring dignity in difficult times Pakatan Rakyat shares the anxiety of the people to live a dignified life in confronting the demands of daily life before policies to raise income take hold.
7. Narrowing the Urban-Rural Divide Pakatan Rakyat will increase incomes and employment opportunities for Malaysians in rural areas.
8. Improving the Quality of Life Pakatan Rakyat will champion a better quality of life for all Malaysians.
Increasing use of green technologies to foster better energy use, efficiency and savings for the people on utilities and other household expenses and for industry to raise productivity and profitability.
9. Reforming The Political Landscape Pakatan Rakyat will strengthen our parliamentary democracy and federalism.
10. Youth at the Forefront For Change
The forthcoming newly installed Pakatan Rakyat government cannot carry out these essential and game changing policies by itself and in isolation. The rakyat, as employees and employers, as housewives, caregivers and students, and most importantly as contributing citizens must play their individual and collective roles and take their place in advancing this brave inaugural agenda to move Malaysia forward to stand tall globally.
[Pakatan Rakyat Budget 2012 released by Datuk Seri Anwar Ibrahim on behalf of PR in Kuala Lumpur on 4th October 2011. Part 1 of 10]
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