KUALA LUMPUR: The government will be intensifying human capital development efforts through various initiatives, including productivity enhancements, to boost the people’s incomes.
According to the Economic Outlook 2020 report released today by the Ministry of Finance (MoF), the government will focus on equipping Malaysians with the skills, knowledge and ability to meet industry requirements.
“Under the 2020 Budget, the government will allocate funds for food and cash assistance to students from low-income families, among others.
“In terms of tertiary education, the curriculum will be enriched while the industry internship programmes will be revised to enhance graduate employability,” it said.
The report also stated that in line with the National Entrepreneurship Policy 2030, several strategies would be formulated by the government to create an atmosphere where the public sector, private sector, professionals and people can collaborate effectively.
“Additionally, the 2020 Budget will also introduce initiatives to improve and streamline administrative regulations, procedures and systems as well as public service delivery to support entrepreneurship,” it said.
The report also includes a study on structural changes in the Malaysian economy based on output, value added, taxes and subsidies.
“In 2005, manufacturing was the most significant economic sector, but in 2010 and subsequently in 2015, the services sector emerged as a significant contributor to the economy,” it said.
In terms of value added, the study revealed that in 2005, crude oil and natural gas was the primary industry, while in 2010, wholesale and retail trade, repair of motor vehicles and motorcycles surpassed crude oil and natural gas as the leading industry, and the trend continued in 2015.
In terms of tax collection, motor vehicles, trailers and semi-trailers remained the largest contributor from 2005 to 2015.
“Taxes from tobacco products and spirits, wine and liquors continued to increase during this period, while taxes from arts, entertainment and recreation were significantly reduced to encourage the industry’s development,” it said.
The MoF added that as a result of the subsidy rationalisation policy, the amount of subsidy has been reduced.
“However, coke and refined petroleum products continue to be heavily subsidised albeit at a decreasing level, while subsidies for other products were provided on a targeted basis to meet social and developmental objectives,” it said. - Bernama