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Budget 2012: National Transformation Policy To Spur Nation Towards 2020

By Friday October 7th, 2011 No Comments

KUALA LUMPUR, Oct 7 (Bernama) — Datuk Seri Najib Tun Razak today tabled in the Dewan Rakyat the Budget 2012 proposals totalling RM232.8 billion, and announced that the government’s transformation programmes would culminate into the National Transformation Policy (DTN) towards making Malaysia a united and progressive nation by 2020.

The prime minister said the DTN would be effective from 2011 to 2020.

Najib, who is also the finance minister, said that when he took over the leadership of the country in 2009, he started his administration with the guiding philosophy of “1Malaysia: People First, Performance Now”.

This was followed up with the implementation of the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP) and, lately, the Political Transformation Programme (PTP) to enable Malaysia to become a modern and progressive nation and, at the same time, a functional democracy, he said.

In the 2012 Budget, which he said was formulated with the theme “National Transformation Policy: Welfare for the Rakyat (People), Well-Being of the Nation”, Najib outlined strategies to stimulate the economy and proposed inclusive programmes considerate of the people’s well-being in tackling the rising cost of living.

The budget addresses the burdens of all strata of society, from the hardcore poor to taxi drivers, fishermen, senior citizens, Felda settlers, civil servants and pensioners, women and youths, to contractors and investors. Even members of parliament are set to enjoy new allowances and other benefits.

In his speech, which took two hours and 10 minutes to deliver, the prime minister expressed confidence that the sound economy and the measures to stimulate domestic economic activities were expected to spur economic growth of between five and six per cent next year.

He said private and public investments were expected to increase 15.9 per cent and seven per cent, respectively, supported by higher foreign direct investment and implementation of the ETP and Second Rolling Plan (RP2) projects under the 10th Malaysia Plan.

Budget 2012 allocates RM181.6 billion for operating expenditure and RM51.2 billion for development expenditure.

Najib said the federal government deficit in 2012 was expected to improve to 4.7 per cent of GDP compared with 5.4 per cent in 2011.

The total revenue of the federal government was expected to increase 1.9 per cent to RM186.9 billion in 2012 compared with RM183.4 billion in 2011, he said.

Najib said that the government would implement projects amounting to RM6 billion in 2012 through the Special Stimulus Package.

Budget 2012 focuses on five areas, namely accelerating investment; generating human capital excellence, creativity and innovation; rural transformation programme; strengthening the civil service; and easing inflation and enhancing the well-being of the “rakyat” (people).

To boost investment, the government would implement the Second Rolling Plan (RP2) of the 10th Malaysia Plan with an allocation of RM98.4 billion for 2012 and 2013, he said.

The main projects to be implemented under the RP2 are the Gemas-Johor Baharu double-tracking rail project; the Jabor-Kuala Terengganu stretch of the East Coast Expressway; the Banting-Taiping West Coast Expressway; the Segamat-Tangkak Expressway; the Central Spine Expressway; the Kota Marudu-Ranau Road; and redevelopment of the Sungai Besi Kuala Lumpur Air Base, he said.

Najib also said that Felda Global Ventures Holdings (FGVH) would be listed on Bursa Malaysia by mid-2012 to raise funds for the company to be a global conglomerate, and added that the listing would create another blue chip plantation company besides attracting international investors to Bursa Malaysia.

Felda settlers, he said, were expected to receive a windfall, with the amount to be announced before the listing.

To internalise innovation as a way of life, Najib announced 2012 as the year of the National Innovation Movement.

He also announced the abolition of school payments from next year, thus making education free in primary and secondary government schools for the first time in the nation’s history.

Najib also announced the Rural Transformation Programme to transform the rural areas to attract private investments, create employment and economic activities as well as to provide opportunities for the younger generation to return and work in the rural areas.

For the civil service, the prime minister announced the extension of the compulsory retirement age from 58 to 60 years, besides proposing a salary increase of between seven and 13 per cent.

Civil servants will also receive a bonus of half-month salary with a minimum payment of RM500 and an assistance of RM500 to government pensioners plus an annual increment of two per cent for pensioners from 2013.

Najib also fulfilled his promise of looking into the people’s grouses over rising prices of goods, especially food.

He said the government would undertake both short-term and long-term measures to address the problem, including stepping up the production of main food commodities such as rice, meat, vegetables and fruits.

Giving the assurance that subsidies would be continued, Najib said with a hint of sarcasm that some groups tried to promote the concept of a welfare state when the government had long implemented various programmes to safeguard the people’s welfare.

“We congratulate them, as they only now realise this concept,” he said.

Najib said Budget 2012 would continue with the tradition of placing the welfare of the rakyat (people) and the well-being of the nation “as our top priority”.

“What is important is the creation of a brighter future for every Malaysian child, a future full of hope and prosperity, not fear or hatred,” he said.

Najib said it was not only about unity in diversity or improving the public delivery system or restructuring the economy but included the Political Transformation Programme which would create a new path for Malaysia’s next phase of development where differences of ideas will be celebrated and not lead to never-ending conflicts and where no individuals will be punished or sidelined for ideological differences.

“In an environment of global uncertainties, the strong support of the rakyat (people) is mandatory for us to become a developed and prosperous nation,” he said.

Source : Bernama

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