The Malaysian Insight

PAKATAN Harapan (PH) today released its Budget 2022 Strategy Document, 48 hours before the tabling of Prime Minister Ismail Sabri Yaakob’s first national budget, calling for an immediate injection of RM45 billion.

As the main opposition bloc, PH said that the document would be used as its main reference point in its consultation with the Ismail government.

The document was unveiled in Parliament by PH chairman and opposition leader Anwar Ibrahim, accompanied by Amanah and UPKO presidents Mohamad Sabu and Wilfred Madius Tangau.

The document can be downloaded from the PH Facebook page.

According to PH, its budget proposal is divided into three parts: the economic outlook and fiscal balance for 2022, expenditure proposals and suggestions to strengthen the budgetary process and reporting.

Fiscal

As Malaysia is expected to experience stronger economic growth in 2022, PH said it hopes the government will take an expansionary approach not only to catalyse the recovery but also to assist the households and businesses whose livelihoods were affected by the Covid-19 pandemic.

“Premature fiscal consolidation will put recovery in jeopardy. Fiscal balance can be addressed once recovery is fully secured and that is likely in 2023.

“For 2022, it is crucial that the government prioritises economic growth over the public sector fiscal balance. The expected revenue increase, along with a strong borrowing plan, should be used to support the economy,” it said.

RM45 billion injection

On the proposal side, PH wants the government to allocate at least RM4 billion for the Health Ministry so that it can upgrade hospital capacity – medical equipment and human resources – to address Covid-19 epidemic issues.

It also called for additional funds to be allocated to outsource patients to private hospitals in the event of further Covid-19 surges.

The opposition bloc also called on the government to address the manpower issue in the public healthcare system by resolving the issues faced by contract health workers and build a stronger FTTIS (find, test, isolate and support) system.

Among the measures included subsidising self-testing kits to make it more accessible to B40 group, allocating funds to design a more reliable notification mechanism for MySejahtera and upgrade the Hotspot Identification for Dynamic Engagement (HIDE) system, allocating funding for booster shots and enhancing the quarantine process.

PH also wants the government to use RM30 billion for financial grants and subsidies for the economic sector.

It said that RM15 billion should be invested in pandemic-proofing workplaces, factories and workers’ housing via grants, soft loans and tax incentives.

It said that there should also be loan guarantees, grants and credit extensions for small and medium enterprises such as food and beverage, tourism and local community-based businesses.

PH also wants the government to be prepared to pre-empt a possible wave of defaults and bankruptcies as more companies are still facing liquidity and solvency risks with a company similar to Danaharta.

The opposition bloc also called on the government to spur employment by allocating RM6 billion for work hiring incentives, particularly in the R&D, renewable energy, healthcare and advanced engineering sectors.

PH further called on the government to allocate RM5 billion and double the monthly welfare payments to affected households for a year.

One interesting proposal is to ensure equitable distribution to female household heads as they earn 40% less than the average household in Malaysia.

It also wants the government to introduce a monthly payment of RM100 per child (up to 12 years old) for those in the B40 and M40 families. This, said PH, would make the cash payment programme more responsive to family size.

As highlighted earlier, PH also wants the government to implement a loan moratorium interest waiver for households earning less than RM5,880 per month.

Strengthening Parliament and other reforms

Apart from the various proposals on expenditure, the PH document also called on the government to strengthen Parliament as agreed in the Memorandum of Understanding that was signed with the federal government.

Parliament empowerment, it said, is key to ensuring transparency and budget compliance.

It this matter, PH wants the government to provide resources for Parliament’s Special Select Committees (PSSCs) to be at least equivalent to the Public Accounts Committee.

It said that the nine PSSCs should have enough funding to engage advisors / experts in the relevant fields, dedicated secretariats, research officers and be allowed to broadcast its proceedings.

Apart from that, PH also wants the government to officially migrate from cash-basis to accrual accounting to instil greater accountability and transparency in government spending.

It also wants the government to increase the average capitation grant to RM20 per person from the current average of RM13.61 per person.

PH said this would enable states to decentralise and improve services at the state level. – October 27, 2021.