Prospering The Rakyat – An M40 Budget

The government has adopted an across the board, forward-looking balanced budget proposal rooted in the belief that every hardworking person deserves the chance to make it in Malaysia.

Prime Minister and Finance Minister, Datuk Seri Najib Tun Razak, tabled Budget 2016 in the Dewan Rakyat on Friday 23rd October 2015 with the theme “Prospering the Rakyat”.

With government revenue falling by almost US$1 billion in 2015 after a 40 percent drop in commodity prices, most analysts were of the opinion that it would be a difficult one for Prime Minister Najib, given the weakened ringgit and a challenging economic climate of low oil prices.

However Prime Minister Najib Tun Razak said he was committed to fiscal consolidation to further shrink the budget deficit targeted at 3.2 per cent this year. “We are confident of reaching a balanced budget or as close to that as possible by 2020,” he said. “To do this, some hard decisions had to be made.” said Prime Minister Najib.

Arcadis’ Global Built Asset Wealth Index 2015 which includes property, infrastructure, transportation facilities and utilities shows that Malaysia is ranked No. 22 globally, up 3 rankings from 2013.

Ian Kennedy, Head of Business Advisory, Malaysia from Arcadis’ had this to say, “Infrastructure investment and development will play a key role in the final stage of Malaysia’s transformation into a fully developed country by 2020. With the 2016 budget, we expect infrastructure will continue to be a large share of built asset investments in Malaysia, especially with highway and railway construction, energy and water utilities and other public infrastructure.”

Tan Sri Dato’ Sri Leong Hoy Kum, Group Managing Director, Mah Sing Group Berhad had this to say, “Mah Sing lauds the various initiatives in Budget 2016, of which has several initiatives including reiteration of commitments to major infrastructure projects and various measures to create more affordable housing”.  “We are heartened to see the Government’s continuous commitment towards improving the nation’s public transport network”, he went on to say.

IBS RM500M FUND VIA SME BANK

Tan Sri Dato’ Sri Leong added that the IBS RM500million fund via SME Bank would definitely benefit the housing and construction industry, and would allow market players to explore further usage of this technology for time savings as well as reduction of material wastage during construction.

According to Foo Gee Jen, Managing Director of C H William Tahar and Wong Sdn Bhd, the RM900 million that has been allocated for a dispersal road off Jalan Tun Razak from KLCC to Tun Razak Exchange, could ease traffic congestion not only in the KLCC area and Tun Razak Exchange but also in the Bukit Bintang shopping area.

“The RM42 million allocated for Mukah Airport (Sarawak) and the upgrading of Kuantan and Kota Bharu will also stimulate further property development in these cities.” said Foo.

PR1MA, RUMAH MESRA RAKYAT, PPA1M

Under PR1Ma, Rumah Mesra Rakyat, Perumahan Penjawat Awam 1Malaysia (PPA1M) and Program Perumahan Rakyat, a total of 317,000 units affordable homes have been planned. The shortage of affordable housing for the rakyat appears to still remain an elusive problem to resolve.

Foo goes on to say that continuing to improve the affordable housing program, RM200 million will be allocated to assist first time buyers. It is estimated that between 20,000 and 30,000 will benefit this scheme compared to the estimated 330,000 potential buyers for affordable houses.

In conclusion, the government’s approach to strengthen infrastructure and to support economic expansion in providing equal emphasis on both economic growth and the wellbeing of Malaysians, seems to be well thought through and tailored to assist middle class households who have previously been left out in the cold.