KUALA LUMPUR, Nov 2 — A projection of a five to six per cent expansion for the local economy as aimed within Budget 2022 is indeed achievable, provided there is proper implementation and oversight of the public funds, said DAP’s Tony Pua.
The Damansara MP explained that if Covid-19 pandemic measures continue to ease locally and globally, and if there are no additional waves of infection or virus mutations, growth for next year is almost a certainty.
“All things equal, the five, six or even seven per cent growth rate is easily achievable, all things equal meaning that projections of recovery are there, we won’t get additional waves, and everyone has been vaccinated, and provided there also shouldn’t be any drastic change that will suddenly neutralise all the vaccines we have put in place.
“Then I think a six per cent growth is easily achievable, but the caveat is of course we are living in uncertain times,” he said during the UOB Kay Lian Post-Budget 2022 Roundtable discussion webinar held this morning.
Pua also warned that another factor that should be considered is the level of efficiency when implementing these measures and initiatives.
He said in principle, many of the initiatives mentioned in Budget 2022 would get the support of the Opposition, claiming many were revived initiatives suggested by the Pakatan Harapan administration.
“In terms of overall budget strategy and allocation, statistically for recovery purposes, the immediate recovery, I think it (Budget 2022) fulfils the agenda.
“The only question then is in its implementation. It’s always very nice to have very beautiful documents, and Malaysia is known to have very beautiful documents, but implementation often falls short,” he said.
Pua added that implementation measures are where the Opposition will look to focus their checks and balances on in Parliament, to make sure the assistance and initiatives reach the intended target groups.
Additionally, Pua also highlighted his worry about the declining percentage of government revenue in comparison to the gross domestic product (GDP).
He said that government revenue percentage in comparison to the GDP was in the region of 15 to 16 per cent in 2018, and how this figure is expected to decline to less than 14 per cent by 2025.
“This creates a problem, where relative to many other countries, the percentage of revenue to GDP stays around 30 per cent or more of the revenue. Malaysia is at half or less than half of the target.
“Which means the government doesn’t have enough money to influence to the economic direction or to assist the people in need of assistance in the future, and there is no strategy outlined in the budget to address this revenue shortfall,” he added.
