Two days before the 2007 national budget address, opposition party PAS unveiled an 'alternative budget' which included a RM1,000 minimum wage policy.

PAS deputy president Nasharuddin Mat Isa said the alternative budget presented ways to address numerous shortcomings in the Barisan Nasional ruling coalition's management of the economy.

"Economic mismanagement would not only hurt the government but everyone else as well," said Nasharuddin at a press conference in Kuala Lumpur yesterday.

The wide-ranging budget includes a provision to channel profits from national petroleum company Petronas into subsidies for fuel as well as reverting petrol prices to RM1.62, which was the price before the 30 sen hike in February this year.

Other measures suggested to lighten the people's burden includes:

  • Suspending water and electric tariff hikes.

  • Two months bonus for civil servants capped at RM15,000.

  • RM250 tax rebate for schoolchildren-related items.

  • Suspending increase in toll rates and reevaluating concession agreements which allows PLUS (which manages the North-South Highway) from increasing toll rates annually up to the year 2018.

  • Reducing personal taxes from 28 to 25 percent from the 2007 financial year.

    • "Now is the time for the people's spending power to be restored," said Nasharuddin.

    Encouraging business activities

    The 'alternative budget' also refers to a report by the Asian Development Bank titled 'Asian Development Outlook 2006' which ranked Malaysia 21 among 155 countries - behind Singapore, Hong Kong and Thailand - in its "ease of doing business index".

    "Here (in Malaysia) exists too many regulations and regulatory agencies that overlap in functions until it stalls business activities," added Nasharuddin.

    As such, the 'alternative budget', among others, proposes the following:

    • Establishment of a 'Task Force on Regulatory Relief' empowered to study overlapping of agencies and study regulations that burden the economy.

  • Reducing corporate tax from 28 percent to 25 percent.

  • Granting 'pioneer status' to halal food industry and small and medium enterprises (SME) in order to enjoy the incentives under the Promotion of Investment Act 1986.

  • Increasing Fund for Food (FFF) to RM2.5 billion (currently RM1.3 billion) to reduce foreign food import.

  • Market-orientated price determination of rice for farmers to receive reasonable returns to investment and spur the rice-farming industry.

  • Reducing vehicle excise duty by 20 percent across the board.

    • Other measures proposed in the document includes placing the Anti-Corruption Agency and Petronas under the jurisdiction of Parliament as an oversight body.

    The 'alternative budget' concludes that prudent financial management and fiscal policies which are beneficial to the people and the business community will promote healthy economic development and ensure social justice and equitable wealth distribution.

    "It provides the best path towards overcoming poverty, that is, providing jobs. This is development with a human face," said Nasharuddin.

    To a question, PAS youth chief Salahuddin Ayub who was present at the press conference said the party agreed to a 30 percent bumiputera equity requirement for foreign direct investment provided only deserving entrepreneurs are chosen.

    "They (the foreign investors) don't want a sleeping partner, who just does nothing and takes a monthly salary," said Salahuddin.