INTERVIEW | Tabung Harapan alone will not be able to pare down the national debt, which is a long-term effort said Finance Minister Lim Guan Eng.

Instead, Putrajaya intended Tabung Harapan as an exercise in altruism and patriotism.

"Regardless of whether it is RM1 million or RM1; RM10 million or RM10; We all contribute to fulfill our obligations as Malaysian citizens.

"People are doing this regardless of race, religion and back ground. They are showing their love for the nation.

"This is what we call the spirit of sharing bliss and misfortune together. I believe such patriotic spirit can help us to become more united," Lim told Malaysiakini in an interview.

Lim said the enormity of the federal government's debt obligations - which he estimated to be RM1 trillion - eclipses the amount that can be raised through Tabung Harapan in the foreseeable future.

"Do you know how big is RM1 trillion? For every new infant born, he or she would need to pay RM33,333.

"Even if you pay RM1 million every day, you would still need 2,740 years to pay off. The amount is so big, do you think you can settle it? That is not the main purpose (of Tabung Harapan)," he said.

To put things in perspective, Lim said even if the government injected RM100 million into the economy, it will not spur growth at a rate which the RM22 billion for bantuan sara hidup (cost of living assistance programme, the replacement for BR1M) which would be paid out on June 14, would be providing.

Paring down the national debt, said Lim, will take fiscal management and the generation of economic growth. In other words, the government's revenue will need to increase while expenditure is reduced.

Delays vs bankruptcy

When asked on the negative perception arising from Pakatan Harapan administration's decision to delay the implementation of five "100 day" pledges, Lim said the promises will be fulfilled eventually.

"If we were to implement it all now, the nation may go bankrupt," he said. "We know it affects (how we are perceived). Please bear with us as we do not have any choice since we cannot hide the accounts."

Lim said he was confident that the public will understand why the delays were necessary now that the country's financial situation was laid bare.

"People won't be happy, but they will understand that we have no choice... We have already explained our plans to reduce the shortfall after implementing a zero-rated GST policy.

"That is why we can't implement all the promises. Otherwise, we are finished. We will not be able to gain the confidence of the people or investors," he said.

Under the Harapan administration, Lim said the private sector will be taking the lead in boosting the economy, just as how it was done in Penang over the past decade.

Won't raise GST

He said the Harapan administration was not in the business of running businesses and instead providing a safe country, predicated on the rule of law and fair competition, for Malaysians to prosper.

"Only this can make the country prosperous. You know the government, whatever it does may be inefficient and the leakages are high.

"Therefore, it is better to let the private sector do it, as they surely want to make money and will save cost to maximise revenue and keep cost at a minimum," he added.

On the decision to reduce GST to zero percent instead of abolishing the tax altogether, Lim shot down the possibility that this left an opening for to increase the GST rate in the future.

He said that if Harapan dared to do so, it would be rejected by the public.

"We practice what we preach, we reset it to zero percent once we came to power, even though we are facing heavy financial pressure," Lim said.

Additional reporting by Susan Loone.