IDEAS Welcomes the New Direction Emphasised by the Membangun Malaysia Madani Theme: Vital for Growth and

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IDEAS Welcomes the New Direction Emphasised by the Membangun Malaysia Madani Theme: Vital for Growth and

27 Jan 2023

For immediate release IDEAS Welcomes the New Direction Emphasised by the Membangun Malaysia Madani Theme: Vital for Growth and Narrowing the Inequality Gap 27 January 2023, Kuala Lumpur: Institute for Democracy and Economic Affairs (IDEAS) welcomes the new direction introduced by the Prime Minister with the “Membangun Malaysia Madani” theme during the budget consultation session on Tuesday, 17 Jan. [...] Dr Tricia Yeoh, CEO of IDEAS, emphasised, “With the increase of the national debt to RM1.5 trillion, the government needs to implement a form of fiscal consolidation in order to avoid excessive deficits in the long term and to obtain a sustainable budgetary position.” To support this process, a form of subsidy rationalisation should be carried out — ensuring that subsidies are targeted to the unde. [...] A public consultation paper that was released by the Ministry of Finance on targeted subsidies in 2022 estimated that the population that is in the high-income bracket receives three times the amount of benefits when compared to the lower- income bracket. [...] In the long term, what is necessary for the government is to commit to the Fiscal Responsibility Act in order to strengthen financial discipline in the government and to foster fiscal sustainability in the long term. [...] Additionally, Dr Juita Mohamad, the Director of Research and Director of the Economics and Business Unit at IDEAS, also noted, “As a small, open economy, dependent on trade, FDIs are vital to Malaysian economic growth in the medium to long term.

Authors

Mac Mav

Pages
5
Published in
Malaysia