The Malaysian Insight

PUTRAJAYA should place more emphasis on helping low-income groups and providing jobs, said Malaysians ahead of the tabling of Pakatan Harapan’s first national Budget tomorrow.

These include reducing income tax for those earning under RM10,000 a month, more incentives for people buying their first home and continued cash aid for low-income folk.

IT consultant Simon Chin hopes that the income tax will be reduced, given the rising cost of living.

“Last year’s Budget gave reductions for those earning less than RM90,000 a year. So, I hope PH’s budget can be people-friendly, too. After all, the people voted this new government into power.”

The Penangite said there should also be considerations for Malaysians buying their first home.

While Wilson Moorthy does not believe there will be many handouts in Budget 2019, he is hoping the government will focus on low-income groups and “provide more incentives for them”.

The 51-year-old real estate agent also wants the government to strengthen anti-graft agencies, and spend the recovered “ill-gotten gains” on programmes that benefit the people.

“The government can also raise corporate tax to increase revenue.”

His other concerns include increasing the value of the ringgit, attracting more foreign investments, and boosting the quality of healthcare, education and public transport.

Kuala Lumpur International Airport building management staff Mohd Saiful Adli said he has to work in the capital because there are not enough jobs in his home state of Terengganu.

“In Besut, the only jobs available are on those tourism boats or fishing boats, and making keropok,” said the 29-year-old.

He hopes PH’s first Budget will set minimum wage at RM1,500, and cash aid for low-income earners will continue.

“The wages we get now are not enough,” said the father of four.

East Coast Economic Region Development Council tourism chief Ikhwan Al-Rashid Abd Rahma hopes the new government will introduce a tax allowance for green initiatives.

“Currently, there are tax allowances for tourism projects. But, it would be better if there is a special investment tax allowance for green developments.

“The government can also introduce carbon credits for eco-tourism operators to promote more environmentally friendly values,” said the Kajang resident.

In Sarawak, 40-year-old lawyer Francis Teron wants to see the government create more jobs and help newlyweds obtain affordable homes.

“The government also needs to look at setting a minimum price for commodities to help shareholders (below 8ha).”

Also needed, he said, are more allocations for schools and hospitals in Sabah and Sarawak.

Fintech developer J.H. Lok said the government should look at generation loans to help low-income groups buy homes and curb property speculation, instead of using taxes like the real property gains tax (RPGT).

“Many high-rise projects are already on a 48-month construction period, so property speculators have to serve only one more year of interest payments to avoid paying RPGT.”

He said Singapore has a more effective tool to curb speculation, by imposing a sales levy on the disposal price instead of only gains.

Lok said the current measures of consolidating affordable homes, subsidies for first-time house buyers and tax waivers on 50% of rental below RM2,000 per month lack effectiveness, as many first-time buyers from the B40, or bottom 40% of households, group cannot qualify for loans on their own.

“Generation loans, by merely allowing the extension of tenure to 60 years (to be repaid over two generations), will bring down monthly instalments, making it easier for the B40 group to qualify for loans,” said the 47-year-old from Selangor. – November 1, 2018.