The 2002 budget presented to Parliament today was to protect the economy from an uncertain global economic climate, commented Deputy Prime Minister Abdullah Ahmad Badawi.

"The budget was meant to deal with an uncertain world economy especially after what happened in the US. We are exposed to the US economy as most of our trade are conducted in US dollars," Abdullah told reporters in the Parliament lobby.

"What is important now is that Malaysians must have the commitment to support the budget proposals made today because if we do not have the support of the people then we can never achieve those goals," Abdullah added.

The Sept 11 terrorist attacks in the US caused severe economic reverberations as stocks in New York stock exchange plunged in the wake of the attacks.

Abdullah who is also Home Minister warned traders and service providers not to raise prices indiscriminately due to increased purchasing power given to consumers by the budget thorough tax cuts and bonuses.

"We must ensure that inflation be kept to its lowest level. The consumer affairs ministry has been told to increase their monitoring and make sure that traders are not profiteering," Abdullah said.

Lower income tax

The government has also proposed that individual income tax be reduced between one to two percent for all income brackets.

Prime Minister Dr Mahathir Mohamad said the maximum individual income tax rate which is currently at 29 percent is now reduced to 28 percent in line with the corporate tax rate.

Abdullah, however, refuted a reporter's question on whether the Budget was 'less exciting' stating that "it did not matter".

"What matters is that the budget is pragmatic and it can be implemented. We are not making demands that are hard to meet," he said.

Abdullah also told reporters that government-run religious schools will have their fundings withdrawn if they were caught educating students in teachings contrary to Islam.

"It doesn't matter who runs the school, we will withdraw funding if their teachings are contrary to Islam. What's the point of supporting them if they are against the religion," he said.

'Cleverly done'

Meanwhile Transport Minister Dr Ling Liong Sik praised the economic package saying that it was "very cleverly done".

"The external economic environment is very uncertain so we have to rely on ourselves. The package of incentives and putting money in the right places such as education, health, transport and tourism can generate a lot of jobs and revenue," Ling said.

Housing and Local Government Minister Ong Ka Ting told malaysiakini that the budget was very people-centred.

"My ministry has been given enough emphasis. The Fire and Rescue Services are able to upgrade their services and the new villages would also be seeing more monetary input," he said.

Misconceptions

The Culture Arts and Tourism Deputy Minister Dr Ng Yen Yen said that with the budgetary injection given to her ministry misconceptions on Malaysia could be cleared.

"There are tourists who are sceptical of Malaysia, which is a Muslim country. We can show them that they would be secure in coming here and that we are a multi-ethnic and multi-religious country," she said.

Opposition leader and PAS president Fadzil Mohd Noor, however, expressed scepticism towards the budget.

"The budget looks like it points towards the next general elections and I do not think the civil servants will be very happy even with the half-month bonus or a minimum of RM1,000," Fadzil said.

DAP secretary general Kerk Kim Hock said the lower income earners would not benefit from the budget.

"The reduction in taxes is welcomed but it would only benefit the upper and middle classes. I urge the government to at least reduce the interest rates for low-cost housing.

"I also think that when the worse comes, retraining people who have lost their job would not help," Kerk commented on the government's proposal on retraining of workers.