Budget 2019: Some Initial Thoughts!

Owing to massive debt and the 1MDB Scandal, the Minister of Finance had limited options to manoeuvre and present a dynamic, people-focused budget.  But he did it with several commendable measures, amongst others:

·        RM3 billion Industry Digitalisation Transformation Fund;

·        Fund (RM2 billion) for strategic sectors and new growth areas;

·        Crowd funding for first-time home-buyers;

·        Amnesty for unreported income;

·        Targeted subsidies for the B40;

·        Focus on education (largest allocation); and

·        Taxes that do not really matter, unless you are into gambling or being obese.

But what more could he have done?  He could have helped the following:

·        Renewables with a subsidy for solar panels placed on houses, buildings and factories;

·        Carbon tax on thermal and other energy sources to fund the strategy on renewables;

·        Reduced taxes/ prices for electric vehicles;

·        Higher taxes for individuals and companies with “super” incomes/ profits (this could fund new initiatives);

·        Focus on biotechnology and biosciences for the future.  Have one or more hubs for this – and encourage young people to get into research;

·        Develop medical tourism in a bigger way so we would outdo Singapore and Thailand;

·        Encourage language centres – especially English, Mandarin, Hindi or Tamil.  Why? To meet present and future requirements;

·        Promote entrepreneurship and start-ups especially for graduates and those with skill sets that industry need;

·        Create separate motorcycle lanes for highways/ state roads.  (The highest fatalities have always been motorcyclists).

Pakatan Harapan has made a good start and maybe will do better in the future with greater integration and integrity in the country.