(Petaling Jaya, Saturday): DAP describes the 2008 budget as an unusual one in that the Prime Minister Datuk Seri Abdullah Ahmad Badawi appears to shape an election budget and yet tried to disguise this until its becomes a mix of confused priorities and mismatch of objectives with targets. One indication of an election budget is that the RM176.9 billion allocated for 2008 Budget, represents an increase of 10.9%  from the 2007 budget, without significantly reducing the budget deficit which would be reduced from 3.2% in 2007 to 3.1% of GDP in 2008, the largest budget deficit in South-East Asia.

Another sign of an election budget is for the first time, there is no increases in “sin taxes” for alcohol and cigarettes, the cancellation of school fees up to secondary education level together with free textbooks, RM 6 billion for the police to fight crime and increase in monthly allowances for the unfortunate point to try to alleviate public anger at the government’s mishandling of public safety and poor governance. 

However at the same time such benefits are offset by the miserly allowances paid for example a mere RM 100 increase to the disabled from RM 200 to RM 300 when the amount should be increased RM 500. No mention is made of efforts to establish the IPCMC to fight corruption, abuse of power and inefficiency in the police force so that the police can successfully reduce crime. And the failure of the government to reduce personal income taxes which remains fixed at the highest tax bracket of 28%, still higher than the 20% top tax rate in Singapore. 

The savings of an average of RM100 a year on school fees, RM60 on exam fees and RM300 on books is helpful but would not greatly reduce the financial burden of rising prices. Prosperity can only be enjoyed by all by giving direct money grants to the poor and disadvantaged as Singapore had done.  

DAP proposes a “Malaysia First Bonus” of RM 1,200 a year to Malaysians (a family would receive RM 2,400 regardless whether the spouse is working) with income not more than RM3,000 per month. For the elderly above 60, they will receive an ADDITIONAL “Senior Malaysian First Bonus” of RM1,000/-. These bonuses will only cost RM9.3 billion, far less than the RM  76.3 billion in gross profits earned by Petronas last year. 

The main thrust of the Budget was aimed at enhancing the nation’s competitiveness, strengthening human capital development and ensuring the well-being of all Malaysians. Instead we have a confused election budget will neither spur economic growth nor ensure prosperity for all and not strengthen the nation’s competitiveness and human capital development. 

Why are non-bumi contractors still not allowed to tender for government procurement and instead public-listed companies required to disclose the ethnicity of employment

How can Budget 2008 spur economic growth, improve the delivery system and strengthen the nation’s competitiveness when the Prime Minister has failed to deliver his promise made during the recent MCA General Assembly that he will open up government procurement to non-bumi contractors sharing a joint-venture with bumi contractors? Works Minister Datuk Samy Vellu revealed in May 2007 that 96% of these projects are given to bumis. 

We are still waiting for Abdullah to lift the ban on non-bumi contractors so that RM 46.8 billion of infrastructure  works under the Ninth Malaysian Plan(9MP) is available to all. The miserable RM 1.8 billion or 4% over 5 years given to non-bumis or is far below the 35% non-bumi population in the country and demonstrates how the NEP continues to exclude and divide Malaysians based on race. Abdullah will only convince Malaysians that his policies will be fair and equitable to all communities by ending the New Economic Policy(NEP) and open up government procurement to all Malaysian contractors. 

Instead of strengthening human capital development based on nurturing their talents, Abdullah is doing the opposite by imposing a new requirement under Corporate Social Responsibility. From next year, public-listed companies to disclose their employment composition by race and gender, and list programmes to develop local and Malay partners, showing that Abdullah is still focusing on ethnicity over merit and preferential treatments over competitiveness. 

What is the point of spending RM 12 billion for the Higher Education Strategic Plan to produce highly knowledgeable and first-class human capital as well as develop world-class higher education institutions when the basic condition of merit is not complied. No non-bumi Vice-Chancellor has been appointed to any of the 17 public universities despite their academic excellence and leadership ability. 

DAP proposes that the government legislates the use of oil and gas revenue to ensure that 50% of oil and gas revenues be invested in human capital and research and development, while another 25% be used to strengthen the social security for Malaysians who are in need. This will help to build the necessary economic capacity for Malaysia, to ensure that the increases in productivity and innovation will more than compensate for the expected decline in oil revenues.