Budget 2023, which will be presented on Oct 7, offers the best platform to map Malaysia’s finances in driving economic recovery in all aspects.
However, the budget is not a magical document which can change the country’s economic landscape overnight. The various initiatives of the budget need to be mobilised to realise the ideas contained therein.
Malaysians now hope Budget 2023 is able to provide synergy to economic activities through physical, material and spiritual infrastructure facilities for the people to rise from the present economic gloom.
There needs to be a number of focused allocations made able for the nation to be more sustainable and to stimulate shock-proof economic recovery activities in the face of uncertain global challenges.
At the forefront, the government’s main focus is to improve the well-being of the people in meeting their basic needs of ‘Keluarga Malaysia’ (Malaysian Family) such as food security, housing, a secure nation, health and employment, among others. And, this must be made in line with global economic projections which is expected to grow at a rate of 3.6 percent in 2023.
The stronger push towards digital technology, which will garner a multiplier impact on the national economy, will help the nation adapt to changes in the climate of local and global business markets.
Statistics show that in the first quarter of 2021, income from e-commerce transactions jumped by 30 per cent, totalling RM254.6 billion.
This scenario proves that digital technology is able to sustain the business sector in driving more significant economic recovery measures. It is then expected that Budget 2023 map out a number of allocations for the development of the National Digital Network Plan or JENDELA.
Economic recovery does not only focus on one area. It is multidimensional and solutions need to be found for basic economic problems.
Certainly, financial mapping of the health sector and public transport needs attention by the government. This is also important so that a balance is struck pertaining to income disparity and living standards of Malaysian families in urban and rural areas can be reduced.
Financial assistance is still needed
Targeted financial assistance is still needed for those affected by the economic shock of COVID-19. However, the aid needs to be focused on income-generating activities and economic recovery of the targeted group, instead of merely providing financial incentive aid. The budget needs to allocate added targeted assistance to affected groups such as the disabled, single mothers and those under B40 in the forms of subsidy coupons for basic necessities. This would help this group maximise their existing disposable income.
In order to ensure the well-being of Keluarga Malaysia, the government has formulated an increase in the social security guarantee initiative for individuals facing social difficulties and economic constraints.
Among other initiatives implemented by the government is the RM75 Perlindungan Tenang Voucher Scheme (PTV) launched this year, which offers social protection in the form of insurance and takaful protection to 8.4 million eligible beneficiaries under the Bantuan Prihatin Rakyat (BPR) programme.
This scheme is seen as significant in a situation where the people are facing high living costs and their income and savings, shrinking. It is hoped that the benefits can be extended to more individuals through allocations in the budget this year.
This scheme is able to be a financial buffer for Malaysian families in the face of economic uncertainties without affecting the quality of their daily lives.
The government will table various development and economic recovery initiatives through Budget 2023, however, people’s participation in responding to the government’s call is also an important to ensure its success.
The budget also needs to go hand in hand with empowering governance and the delivery of efficient, transparent and effective public services.
In addition, detailed financial mapping of allocations to face disasters or better risk management also needs attention so that people’s survival is not affected due to issues like climate change and geopolitical uncertainty.
In reality, Budget 2023 is a means to ensure that the momentum of the nation’s economic recovery can be successfully attained, at the same time, every Malaysians must realise that the efforts to face economic challenges do not rest solely on the shoulders of the government.
The people need to work together to ensure that every planned agenda, in line with the Sustainable Development Goals (SDG) is adhered to and aspirations achieved for Malaysia to be a high-income nation by 2025.
Associate Professor Dr Azwan Abdullah, Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan (UMK)
