KUALA LUMPUR, Feb 27 — Datuk Seri Hamzah Zainudin offered up words of praise to the Anwar administration in debating the revised Budget 2023 in Parliament today even as he expressed doubts in its proposed implementation.
The Opposition leader said the revision tabled last Friday proved that Prime Minister Datuk Seri Anwar Ibrahim who is also the finance minister was sympathetic to the working class’ struggles.
“When Tambun spoke about placing a full stop on poverty by this year, I want to tell him, ‘Congratulations and job well done’.
“It shows that he is really sympathetic to the poor. But, if we want to do that, let it be something that is achievable,” Hamzah who is Larut MP said in the Dewan Rakyat, referring to Anwar who is Tambun MP.
He was weighing in on the timeline set by Anwar to end hardcore poverty during the Budget 2023 retabling last week.
“Because we only have nine months left, I think we should change the word, don’t let it be ‘placing a full stop by this year’ but to reduce poverty to zero in our country,” Hamzah said while debating the Budget.
He wanted to know the specifics of how the government planned to meet its goals, noting that the details were absent during the retabling last Friday.
Hamzah, in his speech also expressed sympathy for Anwar, hinting that what was announced in the Budget 2023 did not reflect what was needed in reality.
“Tambun said it is important to reduce the country’s fiscal deficit, something we feel that is good, but what are the strategies?
“It was not explained to us at all, if its only as far as saying ‘the government will reduce.. ‘ compared to the previous Finance Minister,” he said citing former Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz who set a target to reduce fiscal deficit from 5.5 per cent to 4.4 per cent.
“Today however, Tambun said five per cent by this year, I’m not sure if this is a reality that could be achieved.
“We have to think about the time the Budget was presented, it takes about two or three months before it can be approved.
“It’s not only the rakyat who will start questioning, but those out there who are looking at Malaysia and wondering if they should come and invest,” Hamzah said.
He also urged that the Budget 2023 be a budget that is a historical one — a budget that is fair to all — since it was 24 years ago that Anwar last read the Budget speech.
“Don’t let it (be a Budget) have any feelings of vengeance — I didn’t say this, Arau (Arau MP Datuk Seri Shahidan Kassim) said it.
“Why is this happening? Is it true that the states that received allocations are states that are Pakatan Harapan-led (PH)? It looks as though there isn’t equality.
“We don’t want those feelings, because it shows unfairness,” he said.
On economic growth, Hamzah asked the Prime Minister to relook at initiatives under the Shared Prosperity Vision (SPV) 2030 whereby they were approved and upheld by the Parliament.
“It’s not that we want to condemn, but we want to ask how. Some are saying that the government don’t want to use the SPV anymore, even thought it was created to look for new economy ventures.
“Will there be focus there? Even if they don’t want to use the name SPV, what’s important is to take in account the initiatives under it... what’s important is that it benefits all,” he said.
Speaking on cost of living, Hamzah claimed that many announcements made by Ministers to address cost of living issues in recent times, were brainchild of former Economy Minister Datuk Seri Mustapa Mohamed.
“Yesterday a minister announced the IPR (People’s Income Initiative). Alhamdulillah, I’m thankful that from all sorts of formula mentioned, they in the end accepted the former economy minister’s (Mustapa Mohamed) formula.
“Even though I see that we are stuck in all kinds of situations.. We should sit together and discuss first.
“I know Pandan (PKR’s Pandan MP Rafizi Ramli) has many remarkable formulas, but in the end it was our (Perikatan National) formula that benefits all that they accepted, don’t be so arrogant, nothing wrong for others to follow suit,” Hamzah said.
He also reiterated calls for the government to implement targeted withdrawals for the Employees Fund (EPF), allowing those who really the funds to make withdrawals.
“For example, business owners who have saved quite substantial amount in their EPF account, what’s wrong with allowing this group of people to make withdrawals?
“They need the money to pay off debts, and if they don’t up, chances are their business will die. Let the save what they have now, because once they lose their business assets now, there is no way that they are able to acquire these assets next year at higher market price when they cannot even afford to salvage what they have now.
“Why can’t the government allow this? Don’t punish people like this,” he said.
Another area Hamzah raised was strategies through taxes, particularly on individual tax, to those who received privileges especially the M40 (middle 40 income group) — 2.4 million of them — those who pay income tax because their income is up to RM100,000.
“That’s very good. But those who earn more than RM100,000, we need to look back (at the policy) because we don’t want to ‘tax the rich and give it back to the poor’, but when we look at the individual tax that just stops at RM1 million cap.
“What about those who earn above RM1 million? We need to look again as well as other taxes,” he said.
Hamzah was referring to windfall tax as a way to tax those who gain profits through windfalls.
“For example the windfall tax, why can’t we introduce this tax?
“This is one of the way (to tax) those who gain profits through windfall can help the country and those who are poor,” he added.
In October 2021, the government had then imposed a one-off special tax for “high-income” companies earning RM100 million and more, to increase funds for those affected by Covid-19.
The Finance Minister then had said the tax would be 24 per cent for the RM100 million and 33 per cent for the rest above that, to ensure that t he public health system is more resilient in the face of any threats in the future.
On the luxury good tax, he said since Malaysia is one of the countries that is considered as a ‘shopping haven’ for foreign tourists, this tax needed reconsideration.
“Previously we have GST (goods and services tax) or VAT, there is a mechanism that when they buy and get back the tax that they paid.
“But this time (there’s no mechanism) so how? If not those tourists will compare our prices with the neighbouring countries and we will lose our status as shopping heaven.
“So I hope that we can review this policy, but for Malaysians, its okay. Those who are rich and can afford these goods even if the price is higher (due to the new tax) can continue shopping,” he said.
