KUALA LUMPUR:Barisan Nasional Backbenchers Club (BNBBC) chairman Datuk Seri Najib Tun Razak today said that he and his friends' support for the 2021 Budget is conditional.
The former prime minister said he wanted the people to be allowed to withdraw RM10,000 from Account 1 of the Employees Provident Fund (EPF) on a one-off basis.
Apart from that, the Pekan Member of Parliament said the government must also ensure the extension of the moratorium is extended to the M40 group until June 2021.
"We are not just representatives or spokespersons. We praise the good, we fix the bad, and please amend or repeal the unacceptable ones. Hope the government is open-hearted and takes into account views and suggestions.
“The 2021 Budget has been able to provide for the needs of the people as I explained earlier.
"But based on the expectations of the people, it needs to be added and improved so that the people's acceptance (of the 2021 Budget) will be more robust and comprehensive," he said when debating the Supply Bill (Budget 2021) in the Dewan Rakyat today.
Najib, who is also Finance Minister between 2008 and 2018, said he saw the country's growth at the lowest level in the last ten years and dividend payments to the people were also at a sluggish rate.
For that reason, he is of the view that the withdrawal of RM10,000 from the EPF can not only help the desperate people but will not even affect the calculation of the country's deficit.
“This is what I mean as a bold and extraordinary step or bold and unconventional method in extraordinary circumstances.
“These funds are much needed to supplement the money cycle in the economy. At the moment, we are aware that government’s spending is limited and this move can help people who are desperate and affected,” he added.
Najib said the government's responsibility was not to deny the rights of the people but to focus on efforts to restore and ensure that contributors' savings increase.
He further explained that this can be realised in several ways, including helping the EPF to earn income by providing projects as done before such as Kwasa Land, Battersea in the United Kingdom and 46 per cent ownership of PLUS shares.
Secondly, Najib said the government can also change the contribution structure of employees and employers to a higher rate after COVID-19 (situation) has shown recovery.
And third, he suggested that the government change the dividend payment structure through the multi-tier dividend structure method where the lower savings balance will receive higher dividends.
"With this, the old-age savings of contributors who had to withdraw one-off from account one can be restored in the near future," he explained.
Najib said the RM10,000 withdrawal was very important for those who lost their jobs and wanted to start a new life such as starting a business, buying tools such as motorcycles and so on.
"It is impossible for the new life of the affected people to be started with just a withdrawal of RM500 a month from the account," he added.
On the moratorium, Najib said he agreed with Opposition Leader Datuk Seri Anwar Ibrahim's debate speech yesterday that bank profits would not be affected if it was extended and expanded to the M40 group.
“Every day I receive many complaints from the people who are affected by the COVID-19 pandemic. If we look at social media platforms like Facebook and Twitter, the average is not just from B40, even M40 also suffered a huge impact.
"In this budget, the government has only extended the moratorium to B40, even that is not for everyone. It is as if we have forgotten the M40 group which also received a big impact from the situation we are facing,” he added.
In this regard, Najib said, his support and friends in BNBBC are subject to the two issues raised.
Firdaus Azil
Tue Nov 10 2020
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Najib said said that he and his friends' support for the 2021 Budget is conditional.
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