2007 budget:needs greater efforts to fight inflation and protect ordinary people, 2.9.2006.

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw urges the Government to take more effective measures against inflation, such as by stepping up enforcement and fulfilling the promise against reducing petrol subsidies.

Dr Tan comments on inflation following the 2007 budget presented by the Prime Minister and Finance Minister Datuk Seri Abdullah Ahmad Badawi on 1.9.2006.

The RM159.5 billon budget has increase and decrease in taxes, tax relieves and incentives, such as corporate tax going down from 28% to 26% by 2008, further taxes on cigarettes and alcohol, abolition of government examinations fees and rebate for the purchase of computer from RM500 to RM3, 000. The media are full of good news.

We hope that these changes in taxes and relieves will produce desirable effects. The allocation of RM24.68 billion for education and training attracts attention. However, we must not forget the general feeling of ordinary people about price increases and business atmosphere, including hawkers and petty traders. The Government must try its utmost to help the public.

From 2000 to 2004, Malaysian Consumer Price Index (CPI) has risen from 2% in 2004, to 3% in 2005 and 3.9% in 2006. Although this may not be as high as some countries, it still hurts.
Datuk Seri Abdullah reaffirms his intention of keeping the present level of petrol subsidy of 19 billion a year. We hope he fulfills his promise.

His wishes to improve enforcement on the price of essential goods should be transformed into more effective measures. There must be review of the methods of enforcement. We need clean, efficient and trustworthy enforcement personnel.