| 81. |
|
The Government is also concerned about
the housing problems faced by civil servants, particularly those in the Armed and
Police Forces. An allocation of 1 .08 billion ringgit is provided for the construction
of quarters, which includes 710 million ringgit for the Armed Forces, 197 million
ringgit for the Police Force and the balance of 173 million ringgit for civil servants. |
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| 82. |
|
In line with the objective of a healthy
society and a prosperous nation, the Government will continue to improve health service
facilities. A sum of 6.3 billion ringgit is allocated to the Ministry of Health to
continue, among others, the implementation of hospitals as well as health and rural
clinic projects. Among the health and medical facilities, focus will be given to
improving women and children's health, disease control, nutrition as well as providing
modern equipment and facilities. |
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| Women |
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| 83. |
|
In recognition of women's role in economic
development, the Government has set up the Ministry of Women and Family Development.
With the establishment of the Ministry, issues and problems relating specifically
to women, including children and families will be given a more focussed attention.
In this regard, Article 8(2) of the Federal Constitution has been amended to include
the word 'gender' to ensure that laws and policies do not discriminate against women.
The Ministry has also launched the Women Against Violence Campaign on 23 July 2001. |
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| 84. |
|
The Government is aware that the female
labour force participation rate at 44.5 per cent is lower than the 60 per cent level
in developed countries. Women in Malaysia are fortunate that the Government encourages
and provides equal opportunities in all fields of employment, unlike in certain states,
which do not encourage women to work. In fact, Saidatina Khadijah, wife of the Prophet,
was a prominent and wealthy entrepreneur during her time. Another of His wife, Saidatina
'Aisyah led troops in the Battle of Jamal. Many women provided medical services to
Muslim soldiers injured during the battle. We must remember that Muslims make up
only 60 percent of the population, of which half is women. If women are not allowed
to contribute to the development of the Muslim community, the Muslim workforce will
be reduced by 30 per cent. They are already weak and will become even weaker. |
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| 85. |
|
Greater focus will be given to specific
programmes aimed at improving the quality of women's lives, particularly in rural
areas, developing female entrepreneurs as well as eradicating the gender bias in
all respects. The implementation of these measures reflects the Government's commitment
in ensuring that equal opportunities are provided for women. A sum of 59 million
ringgit has been allocated to finance programmes, specifically for women. |
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| 86. |
|
Currently, widows receiving their late
husband's pensions will lose the benefit if they re-marry. I propose that they continue
to receive the pension even if they re-marry. It is hoped that there will not be
many who will marry a second wife and leave their first wife because of this provision. |
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| Youth and Sports |
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| 87. |
|
Youths are the nation's greatest asset
and have the potential to contribute towards development. In this respect, the Rakan
Muda Programme will be continued with renewed features and form part of the national
agenda for the development of youths. A total of 3.5 million youths will participate
in more than 35,250 activities at the national, state and district levels under this
programme. Participation in the National Social Service Programme for youths which
aims to cultivate self-reliance and inculcate good values will be extended to 20,000
youths. The programmes will be for students awaiting their SPM examination results.
The promotion and publicity for the Rakan Muda Programme will be organised on an
on-going basis to attract youths to participate in activities that suit their interests.
A sum of 81.8 million ringgit has been allocated for these programmes. |
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| 88. |
|
The Government wishes to congratulate
and record its appreciation to the national SEA Games contingent for their overwhelming
success in attaining the nation's best ever SEA Games performance, with 111 gold
medals. Training efforts for our national athletes will be intensified to enable
them to excel in the Asian and Olympic Games. |
| |
| 89. |
|
Sports and recreational activities will
be enhanced. As sports is for people of all ages, additional activities in the form
of competitions for ordinary people will be organised. In addition, new sports activities
such as extreme sports and motor sports will continue to be introduced through competitions
and demonstrations. In 2002, Malaysia will host an extreme sports event at the Asian
level. This new sport is aimed at attracting the interests of youths as well as to
spend their time constructively and productively. |
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| Combating Social Ills |
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| 90. |
|
We have witnessed the increase in social
ills in our society. Recently, the nation has been jolted by unprecedented acts of
violence. The Kampung Medan incident has marred the unity that we have so painstakingly
built up. Moral decadence among youths is a serious concern. The number of drug addicts
and HIV-AIDS patients has increased. Criminals have become more violent. |
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| 91 . |
|
The bitter experience of 1969 underscores
the importance of fostering and preserving national unity. Programmes to create community
awareness as well as build a sense of responsibility in addressing social issues
will continue to be implemented. In this regard, a sum of 6.8 million ringgit has
been allocated under the Ministry of National Unity and Community Development to
carry out programmes under the Social Action Masterplan (PINT AS). This Plan incorporates
measures to enhance cooperation and participation at all levels to ensure that every
member of society leads a healthy and good quality life, free from social ills. An
allocation of 7.7 million ringgit is provided for the National Social Service Programme
under the Ministry of Youth and Sports to combat social ills among youths, particularly
secondary school leavers. |
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| 92. |
|
A sum of 312.4 million ringgit is allocated
to eradicate drug and crime-related problems. Of this, an amount of 140.4 million
ringgit is for crime prevention, mainly to combat drug smuggling and abuse, besides
improving treatment for drug addicts. An allocation of 282,500 ringgit is provided
for voluntary organisations, such as PEMADAM and PENGASIH. A sum of 172 million ringgit
is provided to accelerate crime investigation through the use of modern techniques,
such as DNA profiling to trace criminals. |
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| 93. |
|
To assist voluntary non-governmental
organisations to step up activities in AIDS prevention and drug abuse as well as
the HOSPIS programme for treating serious cancer patients, the Government will provide
a matching ringgit for ringgit grant for sums raised by these organisations, up to
a maximum of 1 million ringgit. A special allocation will be provided for drug addicts
affected by HIV-AIDS. |
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| 94. |
|
Public awareness on the hazards of smoking
is still low among the rakyat. A matter of serious concern is the spread of smoking
habit among school children. Recognising this, I propose that import duty on cigarettes
be increased from 180 ringgit per kilogramme to 216 ringgit per kilogramme while
excise duty be increased from 40 ringgit per kilogramme to 48 ringgit per kilogram
me. The Government is aware that this measure may increase smuggling activities.
In this respect, a more aggressive and effective approach will be taken to ensure
that smuggling activities are curbed by increasing administrative efficiency of the
Customs Department and other enforcement authorities. |
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| 95. |
|
The Government acknowledges and appreciates
the spirit of volunteerism and commitment shown by various voluntary organisations.
In this regard, an allocation for an operating grant of 22.9 million ringgit and
a development grant of 6 million ringgit are provided to 375 voluntary welfare organisations.
Among the new facilities, four day-care centres for the elderly managed by NGOs are
expected to commence operation by 2002. A new institution, Kompleks Penyayang BAKTI
Sungai Buloh has been established to provide care and protection for children, the
elderly and single mothers. In addition, about 10 million ringgit is allocated for
voluntary organisations to provide haemodialysis services. |
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| Public Service Sector |
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| 96. |
|
The Government appreciates the contribution
of the civil service in spearheading development efforts. The Government is also
aware that with the support and commitment of civil servants, policies and programmes
for the benefit of the rakyat have been implemented effectively. I believe the excellence
and professionalism of the civil service will continue to be enhanced, particularly
in the light of greater difficulties in both the external and internal environment.
This should not dampen our spirit, instead it should serve as a challenge for the
civil service to strive harder towards achieving excellence. The nation needs the
dedication of all civil servants. There is no need to resort to armed struggle. Our
struggle is more of attaining economic achievements and upholding the nation's sovereignty.
We should strengthen our resolve, redouble our efforts, inculcate trust and sincerity
as well as promote an excellent work culture. |
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| 97. |
|
As a record of appreciation for the commitment
and dedication of the civil service, the Government will award a bonus of half month
salary or at least 1,000 ringgit for 2001. Half of the bonus will be paid in October
and the other, in November. I hope the bonus will be able to meet expenses for the
coming festivals as well as for those with school-going children, when schools reopen.
The Government is concerned about the income of its officers and staff. As such,
if its financial position permits, the Government can consider a salary increase
for the civil service. The last salary revision was implemented in 1995. The Government
further increased the basic salary by 10 percent in 2000. Now, only two years after
the last revision, the Government has decided to once again increase salaries in
2002, by another 10 per cent, representing an increase in income of 1.2 months a
year. This increase is possible given the higher Government revenue as a result of
economic growth and the Government's prudent financial management. We hope this bonus
payment and the salary increase together with the abolition of the limit on bonus
payment by the private sector will contribute to increasing the purchasing power
of the majority of the rakyat. I also hope that this will encourage us to double
our efforts towards increasing productivity and thereby, contributing to growth of
the economy. |
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| 98. |
|
To improve the scheme of service of Medical
Officers in the public sector, the rate of Overtime Allowances will be increased
from 25 to 50 per cent, effective 1 October 2001. This increase is expected to further
enhance the motivation of Medical Officers burdened with additional work as well
as minimise wage differentials between Government Medical Officers and those in the
private sector. |
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| 99. |
|
In appreciation of the contribution of
volunteers in the security forces, particularly the Malaysian Armed Forces, Royal
Malaysian Police and Civil Defence, the Annual Gratuity Rate for officers and personnel
will be increased from 400 ringgit to 520 ringgit, representing an increase of 30
per cent, effective 1 October 2001. |
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| 100. |
|
For volunteers in the Malaysian Armed
Forces, the specialist grant for officers, which has not been revised since 1958,
will be increased by 100 per cent from 150 ringgit to 300 ringgit annually. For those
in other ranks, the increase is from 100 ringgit and 75 ringgit to 200 ringgit, effective
1 October 2001. |
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| Development of Islam |
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| 101. |
|
The Government continues to uphold the
understanding and knowledge of true Islam and the development of the Muslim community
in this country. In this connection, the Government will continue to provide adequate
allocation under Jabatan Kemajuan Islam Malaysia (JAKIM) to implement various development
programmes for the benefit of the Muslim community. A total of 294.3 million ringgit
is allocated for the implementation of programmes for the development of family institutions
and the provision of social services, greater understanding and assimilation of Islam,
education programmes in religious schools and AI-Quran and Fardhu Ain classes. In
addition, the Government will also continue to implement several development programmes
under JAKIM. These include the building and renovation of mosques and Islamic training
complexes, the building of religious schools as well as the development of an information
system. |
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| 102. |
|
In line with the desire of the Government
to meet the required number of Muslims who are able to recite and memorise the AI-Quran,
the capacity of Maahad Tahfiz Darul Quran in Kuala Kubu Bharu, Selangor will be increased
when the second phase of the construction of the Maahad Tahfiz is completed. |
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| 103. |
|
The Government also intends to implement
more programmes on the understanding of the correct teachings of Islam for students
in public and private higher learning institutions, among officers and personnel
in Government as well as in the private sector. Towards this end, courses will be
conducted on strengthening religious beliefs, spiritual development, appreciation
of Islam and human development. The objective of the Government is to establish a
religiously correct Muslim community. This will only be achieved if there is no deviation
by those given responsibility to teach Islam. For those who propagate teachings that
are against the true teachings of Islam, such as hatred for other Muslims, rejecting
brotherhood of Muslims and branding other Muslims as infidels and spreading slanders,
the allocation will be terminated. The allocation provided is for purposes of propagating
the knowledge of Islam and not otherwise. |
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| Implication of Tax Proposals |
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| 104. |
|
The reduction and abolition of tax proposals
will result in a loss of Government revenue totalling 1.2 billion ringgit. At the
same time, the Government has increased expenditure as a measure to stimulate domestic
economic activities. Thus, the Government must seek other sources of revenue to strengthen
its financial position. Therefore, I propose that:
| i. |
|
the threshold for the imposition of service
tax for restaurants, bars, snack bars and coffee houses, private clubs and advertising
companies be reduced from an annual sales turnover of 500 thousand ringgit to 300
thousand ringgit and above; and |
| ii. |
|
the threshold of 300 thousand ringgit
annual sales turnover for the imposition of service tax on professional services
be reduced to 150 thousand ringgit. In this respect, the Government will step up
enforcement and conduct street surveys to curb tax evasion. |
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| 105. |
|
In addition, the Government has provided
substantial subsidies totalling 4.4 billion ringgit, of which more than half is petroleum
subsidy. To reduce the financial burden of the Government, I propose that this subsidy
be reduced by increasing the retail price of diesel by 10 sen per litre. In addition,
the subsidy for diesel is provided only for diesel supply for the use of land transport,
Government and fishing boats. In line with this increase, I also propose the retail
price of petrol be increased by 10 sen per litre. These proposals are effective from
20 October 2001. |
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| IV. ECONOMIC PROSPECTS FOR 2002 |
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| Mr. Speaker Sir, |
| 106. |
|
Global economic growth and world trade
in 2002 are expected to remain uncertain. We are unsure whether the United States
will be able to avoid an economic recession. However, we also expect that the recovery
ofthe US economy will be delayed. The prospect for recovery of the Japanese economy
is also not encouraging. Given the less favourable external environment, the nation's
economic growth will be driven by domestic economic activities. Our economic growth
is expected to increase between 4 to 5 per cent in 2002 with Gross National Product
(GNP) remaining high at 370 billion ringgit. All major economic sectors will continue
to record growth, mainly led by the manufacturing and services sectors. The increase
in the growth of the manufacturing sector is expected to be driven by the recovery
in global demand for electronics while the services sector will be supported by the
continued pick-up in domestic economic activities. Domestic demand at current prices
is expected to increase by 5.5 per cent, mainly on account of the growth in private
sector expenditure of 6.6 per cent. The public sector, however, continues to grow,
albeit, at a slower rate of 3.1 per cent. |
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| 107. |
|
The economic prospects remain encouraging
given the nation's strong economic fundamentals. External reserves has stabilised
at a higher level of 113.7 billion ringgit or 29.9 billion US dollars as at 15 October,
sufficient to finance 4.7 months of retained imports. The external trade balance
recorded a surplus for 46 consecutive months since November 1997 through August this
year. Gross National Savings is still at a high level at one-third of GDP. The banking
system continues to strengthen with the risk- weighted capital ratio at 12.6 per
cent, which is above the international standard of 8 per cent. The level of short-term
debt is low at 5.2 per cent of GDP, while the debt service ratio remains sustainable. |
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| 108. |
|
With higher GDP growth, per capita income
is expected to increase by 4.7 per cent to 13,962 ringgit in 2002 compared to 13,333
ringgit in 2001. With inflation at a low level, per capita income in terms of purchasing
power parity will increase by 5.1 per cent to 9,403 US dollars in 2002 from 8,944
dollars in 2001, reflecting the higher purchasing power of the rakyat. |
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| 109. |
|
The Government will continue to implement
unconventional measures based on our own approach which have proven to be successful
and effective in managing the economy. In this regard, the ringgit peg will be maintained.
However, the Government will continue to monitor domestic and external developments
to ensure
that the value of the ringgit is consistent with the nation's macroeconomic fundamentals.
Given the volatility in foreign exchange markets, the Government will ensure that
the ringgit exchange rate remains stable. |
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| 110. |
|
The growing difficulties in the global
economy occurred at a time when the nation is just into the first year of the Third
Outline Perspective Plan and the Eighth Malaysia Plan. To achieve the long-term objective
of Vision 2020 for Malaysia to become a developed nation, both Plans envisaged an
average annual growth rate of 7.5 per cent. Since economic growth for 2001 and 2002
are expected to be lower, we have to redouble our efforts to accelerate growth for
the remaining years of the Plans. |
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| 111. |
|
With the nation's economic fundamentals
remaining strong, we are confident of achieving our growth targets. However, we must
redouble our efforts towards realising this objective. Our experience during the
recent financial crisis has shown that we can successfully overcome the worst recession,
when economic growth contracted by 7.4 per cent in 1998. The economy was able to
rebound quickly in the following years, enabling us to achieve the average growth
target of 7 per cent under the Second Outline Perspective Plan. |
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| CONCLUSION |
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| Mr. Speaker Sir, |
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|
| 112. |
|
This year's Budget is tabled amidst an
extremely challenging time with increasing volatility in the external environment.
While our economic fundamentals remain strong, there exists several constraints in
the domestic economy that have to be overcome. We also face problems of social ills
and threats to national unity. Peace and stability are the cornerstone of economic
progress. Good planning and excellent development plans will come to nought, if there
is no peace and harmony. Extremism has no place in our society. We have a truly democratic
process. Every rakyat has the right to elect the government through the ballot box
without resorting to violence or force of arms or creating chaos. Extremism is against
the principles of all religions, more so in Islam, which promotes peace and prosperity,
Islam abhors those who create chaos as in verse 77 surah AI-Qasas as follows: "and
do thou good, as Allah has been good to thee, and seek not mischief in the land,
for Allah loves not those who do mischief', It is not mentioned in the verse that
we should do good only to Muslims. As long as others are not our foes, we should
do good and be fair to them. |
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| Mr. Speaker Sir, |
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| 113. |
|
During the past four decades, the nation
has achieved excellent economic progress and has been a model to the world. The progress
that we have achieved has not come easy. It is also not solely attributable to our
abundant natural resources. Our success has been accomplished through our planning,
our policies and strategies, our efficient administration untarnished by widespread
corruption, our peace and stability as well as our upholding of religious values.
Of utmost importance is the rakyat's unwavering support and untiring efforts as well
as their sacrifice. Keranamu Malaysia. |
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| 114. |
|
Social cohesion builds a strong nation.
A society which is self-reliant, upholds noble values and practises good ethics,
tolerant, caring and just as well as equipped with knowledge will propel the nation
towards greater progress and achievements. |
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| 115. |
|
We pray to the Almighty to bless us with
strength, resolve and perseverance to face all adversities, bestow us with courage
and determination to strive for prosperity and uphold our nation's sovereignty. With
the Almighty's blessings, we will be able to build a peaceful, progressive, harmonious
nation, free from foreign pressure and well respected by all. |
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| Mr. Speaker Sir, |
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I beg to propose. |
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