Wednesday 7 November 2018

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.




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