Prime Minister Datuk Seri Najib Tun Razak on Friday laid down the government's plans towards a stronger and more prosperous Malaysia, saying that he is prepared to put the nation's long-term interests before his own short-term popularity.
Speaking at the National Economic Summit and Dialogue held here, Najib stressed that as Prime Minister, his ultimate responsibility was to protect the people of Malaysia.
He noted that leadership was about doing what was right, not what was easy, and that ducking decisions now would make Malaysia's development suffer.
"I am confident that the reforms (undertaken by the government) will work because our economic record speaks for itself," he said at the summit jointly organised by the Malaysian National News Agency (Bernama) and the Asian Strategy & Leadership Institute (Asli).
Vowing that he would never allow the country's progress, the people's wellbeing and sovereignty to come under threat, he said that was why the government had acted to keep Malaysia's finances under control.
The strengthened economy would ensure that the country remained on track to reach high income status and attain developed nation status, said Najib, who is also the Finance Minister.
These included implementing subsidy reforms which saw a reduction in payments for sugar and fuel, as well as a move from blanket subsidies to targeted support to help those who needed it most.
Taking the opportunity to speak directly to the rakyat, Najib explained at length about several key issues, including the vital need to implement targeted subsidies, efforts to fight corruption, the introduction of good and services tax (GST) and wooing foreign investments.
"If our economy is to continue to grow strongly, we need to not only cut unproductive spending, but also to broaden our revenue stream, allowing us to invest in the future.
"GST (to be introduced in April 2015) will enable us to increase our development spending. Instead of subsidies, we'll spend more money on productive investments -- on infrastructure, on schools, and on healthcare," he said.
Elaborating, he said, when the cabinet approved the subsidy reforms, it was done on the back of strong recommendations from the Treasury, Bank Negara and the Economic Planning Unit.
Najib pointed out that he did not take the decision to reduce subsidies - or to introduce the GST - lightly.
"I thought long and hard about the risks, and the possible impact on the rakyat. But I judged that we had to act - to guarantee our future, security, independence and growth," the Prime Minister told the summit.
He said this was being done as Malaysia was on a journey with its sights set firmly on the destination -- the target of achieving high-income nation status and advanced economy status.
Najib, however, said the government was listening to the people's concerns, and would make adjustments to policies when needed.
"Governing is about taking decisions which are right for tomorrow, and not just for today. Failure to act now would be irresponsible," he said.
Noting that it would be easy for politicians to make cheap promises, offer people what they wanted and dealt with the consequences later, he drove home the point that "leadership is about doing what is right, not what is easy."
Najib pointed out the government's latest reforms had been welcomed by investors and ratings agencies as the budget deficit continued to fall, now at 3.9 per cent, lower than the target.
"We're on the way to a balanced budget by 2020 despite what some pundits are saying, Malaysia's economy continues to grow," he said, noting that the GDP was up 5.1 per cent in the last quarter, coupled with record trade as well as foreign investments.
Armed with strategic plans to keep the economy on track, he said, overall poverty had fallen 97 per cent over the past 30 years, with the country having seen the last of extreme poverty.
Since 1992, household income had tripled, he said, spelling a real difference to the prospects of ordinary people and the lives of the poorest in society.
However, Najib said, progress had come with a price in the form of rising subsidy bills for the government, which spent 15 per cent of the budget in 2010 on subsidies and incentives, mushrooming to 21.4 per cent or RM44 billion by 2012.
In 2009, the nation's budget deficit -- the gap between what was earned and what was spent -- was six per cent, with the cost of subsidies being one of the factors driving up the deficit, Najib said.
However, a budget deficit by itself was not always a bad thing, he said, noting that being in deficit since the late 1990s had not stopped Malaysia from developing.
"And many successful countries, such as Japan, have high debts," he said.
Najib said behind the numbers, things were, in fact, getting better for Malaysian households, including in terms of wages which continued to rise.
"Last year's salaries grew on average by six per cent, much more than inflation, which was 2.1 per cent," he said as he highlighted that since 2009, Malaysia's gross domestic product had grown by an average of 5.7 per cent per year, and household income was 24 per cent higher.
To continue helping Malaysians with the cost of living, Najib said RM40 billion would be spent this year on food, fuel and education subsidies, and on support for lower income households.
He also mentioned that over the next five years, the quantum of the 1Malaysia People's Aid (BR1M) would be increased to RM1,200 to help cushion the blow of rising cost of living.
The government, on its part, was cutting electricity use by five per cent, trimming transport costs, as well as cutting entertainment budget for ministers.
Najib further said the government was ramping up the fight against the age-old problem of corruption, describing combating the scourge as one of his priorities.
"But we must be honest. We cannot click our fingers and make corruption disappear in a day, a month or a year. And so we must tackle corruption, reform subsidies, and introduce GST to make the budget balanced," he said.
The GST is a six per cent tax on goods and services that will replace the existing sales and services tax of 16 per cent.
Bernama
Fri Mar 07 2014
![Najib willing to put nation's interests before own popularity Najib willing to put nation's interests before own popularity](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2014-03/71394170215_295x200.jpg)
Najib at the National Economic Summit and Dialogue. --fotoBERNAMA
10 Berita Pilihan - (16 Julai 2024
Antara pelbagai berita dalam dan luar negara yang disiarkan di Astro AWANI, berikut adalah yang paling menjadi tumpuan sepanjang hari ini.
PAC beri tempoh tiga bulan kepada HRD Corp
Jawatankuasa Kira-kira Wang Negara (PAC) memberi tempoh tiga bulan kepada Perbadanan Pembangunan Sumber Manusia (HRD Corp) untuk mengemukakan laporan tindakan susulan terhadap syor jawatankuasa itu.
Kylian Mbappe tandatangan kontrak dengan Real Madrid
Bintang bola sepak Perancis Kylian Mbappe menandatangani kontrak selama lima tahun dengan kelab Sepanyol Real Madrid pada Selasa.
Pelepasan ketujuh air sisa nuklear Fukushima ke laut selesai
Jepun telah menyelesaikan pusingan ketujuh pelepasan air sisa radioaktif yang dirawat dari loji kuasa nuklear Fukushima Daiichi ke Lautan Pasifik pada Selasa.
Empat termasuk kapten maut dalam pertempuran
Empat anggota tentera India termasuk kapten meninggal dunia akibat kecederaan selepas pertempuuran pada malam isnin di Hutan Desa.
Pakistan sahkan 4 warganya terbunuh di Oman
Pakistan berkata pada Selasa empat warganya terbunuh dalam insiden tembakan pada malam Isnin berhampiran ibu negara Oman, Muscat.
Lima terbunuh, puluhan cedera dalam protes antikuota di Bangladesh
Sekurang-kurangnya empat orang terbunuh dan puluhan lagi cedera dalam pertempuran antara pelajar yang memprotes sistem kuota dalam pekerjaan sektor awam dan polis di pelbagai bahagian Bangladesh pada Selasa.
Kerajaan cadang perkenal pembiayaan swasta
Kerajaan menyasarkan untuk memperkenalkan pembiayaan swasta alternatif bagi memastikan kemampanan kewangan program sektor air, sekali gus mengurangkan kebergantungan pada perbelanjaan kerajaan dan mengukuhkan daya tahan.
Saya tak fitnah Guan Eng, cuma jelaskan siasatan SPRM - Muhyiddin
Presiden Bersatu Tan Sri Muhyiddin Yassin memberitahu Mahkamah Tinggi Kuala Lumpur hari ini bahawa beliau tidak memfitnah Lim Guan Eng berhubung isu pengecualian cukai terhadap Yayasan Albukhary
KPT alu-alukan dapatan, cadangan PAC - Zambry
Ini termasuklah cadangan pelaksanaan Garis Panduan Pelaburan dan Pembiayaan oleh Universiti Awam 2024 kepada anak-anak syarikat di bawah seliaan Kementerian Pendidikan Tinggi (KPT).
![Menteri Luar adakan lawatan rasmi ke China esok Menteri Luar adakan lawatan rasmi ke China esok](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-07/41594796240_Hishammuddin.jpg)
Menteri Luar adakan lawatan rasmi ke China esok
Menteri Luar , Datuk Seri Hishammuddin Tun Hussein akan mengadakan lawatan rasmi ke China dari 1 hingga 2 April 2021.
![Beware of the Fitch rating that can hurl Malaysia into a ditch Beware of the Fitch rating that can hurl Malaysia into a ditch](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2020-04/81585759822_KualaLumpurCity.jpg)
Beware of the Fitch rating that can hurl Malaysia into a ditch
Credit rating agencies cannot be trusted, as the key navigator to steer the macro or micro economy of Malaysia, says Dr Rais.
![Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2018-03/41520591031_ManifestoPH.jpg)
Kaji selidik Monash: Pemimpin korporat Cina puas hati dengan PH
Dalam kaji selidik yang melibatkan 390 responden itu, 50 peratus pemimpin korporat Cina berpuas hati, diikuti pemimpin Melayu (39 peratus), dan pemimpin India (38 peratus).
![MAS tawar diskaun tiket sehingga 50 peratus bermula hari ini MAS tawar diskaun tiket sehingga 50 peratus bermula hari ini](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/http://img.astroawani.com/2019-04/61556544492_MASaeroplane.jpg)
MAS tawar diskaun tiket sehingga 50 peratus bermula hari ini
Syarikat penerbangan Malaysia Airlines kini menawarkan potongan diskaun bagi kadar tambang sehingga 50 peratus bermula hari ini sehingga sehingga 8 Mei depan.