What the 2006 Budget tabled by Prime Minister Abdullah Ahmad Badawi at Parliament last week really says is that we can count on our good track record over the last three years to pursue our economic agenda without any interruption.

The Malaysian economy has been estimated to register a GDP growth of 5% for the current year against a GDP growth of 5.6% for last year against the backdrop of a moderating global economy. This contraction would be almost fully recovered in 2006 with a projected GDP of 5.5%.

The main impetus of growth would continue to be driven by private sector activities which would continue to register strong increases in its expenditure whilst public expenditure would continue to decline with further rationalisation and efficiency improvements. With this, the government's objective of balancing the national budget in the mid-term would not be sacrificed.

The main objectives of the budget are to generate quality growth in the near term and to lay a strong foundation for the country's long-term sustainable growth by:

  • Implementing pro-active measures to accelerate economic activities;

  • Providing a business-friendly environment;

  • Developing the country's human capital; and

  • Enhancing the well-being and quality of life of all Malaysians.

    • The budget - taken as a package - represents a well-thought out and a wholesome strategy with a strong thrust towards preparing Malaysia to create a strong and sustainable economy by developing qualified human capital equipped with modern infrastructure in a caring and friendly business environment.

    Further incentives had also been given to encourage consolidation through mergers and acquisitions in building up scale and capacity in enhancing efficiency. This would prepare Malaysian businesses to build size and stature to develop sufficient strength to further expand regionally.

    What is becoming obvious to us is that the Budget is quite divorced from the country's monetary policy. The latter fails to show any empathy to the plight of the masses who continue to incur negative real interest from their savings at commercial banks that presently pay only 3% per annum on their savings and fixed deposit accounts for tenures of eight months or less compared to the current inflation rate of at least 3.7% - a negative earning of 0.7% .

    This is a serious matter especially when it relates to pensioners who depend mainly on interest payments from their 'nest egg' savings for their survival.

    It is our sincere hope that the implementation of the budget would be closely supervised and monitored. The principle of transparency, good governance and meritocracy need to be observed at all times. Political interferences and the involvement of those with vested interest need to be minimised.

    The social agenda in creating a caring society should be extended to all deserving Malaysians regardless of their race and we should frequently remind ourselves that there is such thing as the urban poor.