ARKIB : 05/10/2011
Actually, the time to make recommendation for the 2012 Budget can be said to be over with the draft for the tabling by the Prime Minister now at the final stage.
However, this does not mean Datuk Seri Najib Tun Razak no longer accept views which are proactive and productive, especially from the people.
Salary, price of goods and oil are the three main factors which determine the people’s cost of living, but the government can only control salary and income, even then, only to a certain extent, to avoid inflation.
The oil factor is beyond control because it depends on world market price , while the price of food and other products, depends on the oil price.
However, there are several aspects of implementing the 2012 Budget to reduce the people’s cost of living.
To a veteran observer of the country’s economic affairs, Professor Dr. Amir Baharuddin, it is not the content of the 2012 Budget, but what is important is its implementation.
“Regardless of what is announced in the Budget, it will not bring any effect, if the implementation is not well-monitored,” he said.
He said if the people are comfortable and able to get what have been promised, they will love the government.
He suggested that a monitoring mechanism on the delivery of any form of subsidy or incentive promised to the people to avoid leakage to foreigners or those who are not eligible to receive them.
“Subsidy, like for books or laptops, for students should be properly monitored to ensure only those eligible benefit from it,” he added.
He also hoped that goods or products which are controlled and their prices are set to also be monitored, and also the rental rates of premises, to avoid it being burdened on consumers.
“The government can introduce a rental rate control since there are developers and owners who impose high rate that traders can’t afford it,” he said.
On the monitoring aspect, he suggested that the relevant ministry seek the consumers’ cooperation by providing a place for them to lodge complaints.
“Since it is difficult to implement the mechanism on monitoring and control due to shortage of work force, the ministry should utilize the consumers to monitor prices of goods.
“Provide them with places where they can lodge complaints like a portal in the Internet, but there has to be follow-ups, because the people will want to see results from the information they provide to the government,” he said.
On salary increase and bonus for public servants, Amir said he said increasing the salary could lead to inflation.
“No point in having a high salary if there is high inflation as a result of poor monitoring and enforcement against errant traders. It is better to give bonus,” he added.
He said it should be emphasized that the government transformation, the economic transformation and the 2012 Budget will only succeed if they are to be implemented successfully.
Head of the Economy and Finance Cluster of the National Council of Professors, Professor Dr. Abdul Rahim Abdul Rahman also agreed that the aspect of implementation is crucial to determine the success of 2012 Budget.
“It depends on what is announced. The aspect on implementation and management is crucial to avoid a leakage.
“The government can spend a huge amount , but it will not achieve the target if not monitored,” he said.
On the possible salary increase, he hoped the government would also focus on the employees saving scheme and not just on spending.
“The workers will be happy, but it does not mean that they can save due to the increase in living cost. Focus should also be given to productivity,” he added.
Therefore, Abdul Rahim said he preferred that the salary increase to commensurate with job performance rather then to give it to all public servants.
He said the incentives to be given by the government are not only in the form of salary increment, but also income tax deduction and other tax deduction, could also reduce the people’s living cost.
“Subsidy is good for the people, but will increase the country’s deficit. Therefore, other incentives, like tax deduction, is more suitable and effective. The main challenge for the government is to find a balance between long and short term,” he said.
He said the Goods and Services Tax (GST) was good for long term and could reduce the country’s deficit.
“But, GST is not suitable to be implemented yet, not only because of the political aspect, but also economically, due to the increase in the cost of living,” he added.
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