Malaysia’s Finance Minister Tengku Zafrul bin Tengku Abdul Aziz will table the 2021 budget, the Yassin administration’s first, in Parliament this afternoon at 4 pm MYT. The Perikatan Nasional administration aims to boost the economy with a bigger allocation compared to Budget 2020.
Malaysia's budget today could be the most ambitious in its history, as the embattled Muhyiddin Yassin government is pushed to preserve people's lives and livelihoods, and boost the economy too, amid the Covid-19 pandemic.
Elaborating on expectations, Finance Minister Tengku Zafrul Aziz said “I think this is the most important budget in our history. It will be different from the previous ones because we are going through the worst crisis. It's a combination of economic crisis and health crisis. The whole world is facing the same problem. This budget is very crucial because 2021 is the year we hope we can show some good recovery. But it's all depends on how we manage the crisis,”.
He further added that the first focus for budget 2021, is to fight against COVID-19 from the perspective of health. Extensive funds will be channelled towards handling the pandemic and extending the necessary provision to the frontline. Other important areas of focus are expected to be supporting industries through a specific set of incentives, developing a sustainable living and empowering service delivery.
Furthermore, Zafrul Aziz added that the Budget will “underline a combination of business-friendly policies, prudent fiscal management, and effective transformation tools, to build the nation's resilience against future economic shocks.”
According to a forecast by the International Monetary Fund, the Malaysian economy is expected to shrink by 6% this year — which would be one of the worst economic performances in Asia.
In response, the Government has introduced four “mini budgets” amounting to RM305 billion (US$73.2 billion) so far, to provide immediate assistance to decrease the burden of especially those who are affected by the pandemic. They were the Prihatin Rakyat Economic Stimulus Package (PRIHATIN), Additional Prihatin SME Economic Stimulus Package (PRIHATIN SME+), National Economic Recovery Plan (PENJANA) and Prihatin Supplementary Initiative Package (KITA PRIHATIN).
Political analysts have said that no other prime minister has faced so much difficulty in presenting a national Budget, mainly because this has now become a proxy for the motions of no-confidence against Muhyiddin that have been suppressed. While all other prime ministers before him have enjoyed undivided support from their coalitions, Muhyiddin heads the fragile Perikatan Nasional pact that does not include Umno and Barisan Nasional, yet depends on both to remain in power.
Furthermore, only 80 out of 222 MPs will be allowed into the Dewan Rakyat for the tabling. Deputy Speaker Datuk Rashid Hasnon said the 80-MP limit will remain for future sittings this session, that is scheduled to be held from November 9 to December 15, following the recent surges in Covid-19 cases nationwide. “The allocation will be 41 MPs from the government and 39 from the Opposition and Independent blocs,” Rashid added.
The full details of Budget 2021 will be published on the Ministry’s website after the tabling in Parliament.
Muhyiddin Administration Set to Unveil Malaysia's “Biggest Ever Budget”
The Muhyiddin government's upcoming budget for 2021 is expected to be Malaysia's biggest ever. It will focus on protecting the urban poor and bolstering the healthcare sector.
November 6, 2020
SOURCE: Reuters