KUALA LUMPUR: Malaysia must move to the next phase of development to be a high-income country where the people’s standard of living and quality of life are a priority, Prime Minister Datuk Seri Najib Razak said.
In his pre-Budget 2018 website today, Najib outlined all the major credit ratings agencies had reaffirmed Malaysia’s status within the “A” band.
Malaysia’s recent economic achievement is recognised by many international institutions such as the Organisation for Economic Co-operation and Development (OECD), International Monetary Fund and World Bank.
“They have repeatedly praised the government’s macroeconomic management and structural reforms, while a survey co-authored by the Wharton School at the University of Pennsylvania earlier this year declared Malaysia to be the ‘Best Country to Invest In’,” Najib said.
The OECD had also acknowledged Malaysia as one of the most successful Southeast Asian economies, and this is due to sound macroeconomic fundamentals and its success in transforming its economy into a diversified and inclusive one.
Najib, who is also Finance Minister, said his vision for Malaysia to be a high-income country was a cause that bigger than him.
“Malaysia has always punched above our weight, and I believe in our tremendous potential as a country.”
These positive affirmation from global bodies are the results of the economic plan Najib had implemented after becoming prime minister in 2009.
One such example is fuel subsidies rationalisation to be more targeted for the needy.
“The tough decisions we took were not always popular – but they were necessary, and they have spared Malaysia from the ravages of recession and the turbulence that has afflicted the global economy.
He highlighted back in 2012, fuel subsidies alone had reached RM25 billion and accounted for 13.6 per cent of the country’s Budget.
“We needed to rationalise subsidies so that money would be spent on those who needed it most.
“At that time, they were blanket subsidies on various goods, such as petrol, which had started during a former leader’s time and had ballooned to unsustainable proportions,” Najib said.
He said many of the people who benefitted from the fuel subsidies then were well-off.
“So what we did was to re-channel these funds that were meant for fuel subsidies back to the B40 group of income earners.
“Today, this is a more prudent and ethical way to distribute public money. We have acted as a responsible government, always seeking to protect our people and look after their welfare and security,” he said.