Show Great Foresight in Malaysian Economy

The Malaysian Prime Minister must create a clear vision in the Malaysian economy, not just nibbling at the edges, mouthing the 2020 Vision.

There are many good things in the 2020 Vision, the international aspect of which is also embraced by ASEAN. We look forward to becoming a developed nation by 2020, if possible. But, factors like September 11 terrorist attack in USA, Bali and London bombings, the high crude oil price and the emergence of Chinese and Indian economies have changed the scenario. Will our country be a net importer of petroleum by 2008 as mentioned in the Third Outline Perspective Plan?

This is a view put forward by Dr Tan Seng Giaw, DAP National Deputy Chairman and MP for Kepong on the relative lack of vision of the 2006 'interim' budget on 6 October, 2005.

When the Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi presented the budget on 30 September, 2005, he rightly kept education and training at RM29 billion and agriculture at RM3.26 billion. There was no excitement. Although the Government is bent on implementing Goods and Services Tax (GST or Value Added Tax, VAT) starting from 1 April, 2006, the budget does not even mention it. How does it want the people to understand the intricate nature of this indirect tax? It touches on the margin such as 50% stamp exemption on loan documentation for borrowed sum not exceeding RM1.0 million and pioneer status with tax exemption of 50% of statutory income for 5 years. The incomes tax rates remain the same.

There is no clear vision on the direction of our economy. Leaders like the Education Minister Datuk Hishammuddin wants to re-introduce NEP (1971--1990); he has not explained how he is going to implement the policy, the quotas and the regulations laid down 34 years ago. He tries to tone down on certain occasions. How would international organizations such as World Trade Organization (WTO) deal with this type of old regulations?

We believe in merits and needs. In the efforts to eradicate poverty and to restructure society, there should not be abuses like the rentier system that goes out of hand.

Facing the challenges of the modern world, we have to review all sectors including the the tax system and the 2020Vision, and come up with a clear vision especially for the economy. A clear vision means taking brave steps to overcome old regulations and quotas.