Opposition party DAP today unveiled its shadow budget dubbed the 'Malaysian First' budget.

The shadow budget, released two days ahead of the tabling of the official budget 2008, among others, promised a 'fair wage' policy and 'Malaysia bonus' for the low-income group.

The 52-page budget was presented by party secretary-general Lim Guan Eng and his economic advisor Tony Pua at the Parliament building. Several DAP MPs, including Opposition Leader Lim Kit Siang, were also present.

"The underlying rationale and approach to our budget is the 'Malaysia economic and national unity strategy' which will be based on performance, competence and needs of all Malaysians," Guan Eng told the press conference.

He said DAP's shadow budget is a distinct departure from the race-based New Economic Policy which has been practised by the Barisan Nasional-led government since the 1970s.

DAP, which holds 12 out of the 219 seats in Parliament, has the highest number of seats among opposition parties.

More Chinese, Tamil schools

Out of the 14 key policy measures proposed by DAP is to implement a 'fair wage' policy to improve the livelihood of low wage earners above the age of 35.

Under the policy, it will help the group increase their take-home pay by making the workers contribute to a lower rate to the Employees Provident Fund (EPF).

Apart from this, it also promised to hand out a 'Malaysia bonus' of up to RM1,200 to citizens earning less than RM3,000 a month while senior citizens aged 60 and above will be eligible for a 'senior Malaysian bonus' of up to RM1,000.

Other highlights in the DAP-proposed budget include:

  • Legislating the use of oil and gas revenue. It is proposed that 50 percent of oil and gas revenues be invested in human capital and research and development, while another 25 percent be used to strengthen the social security for those who are in need. Legislating the revenue will also help prevent the mis-allocation of resources to bailout failed projects.

  • An allocation of RM43.3 billion, or 26.3 percent of the overall budget, to be used on education and training. It is proposed that out of the 250 new schools to be built, 60 and 15 will be Chinese and Tamil schools to ease overcrowding faced by these schools.

  • A blueprint for the 'valley circle' rail network will be developed to improve inter-suburban connectivity, by-passing the congested Kuala Lumpur city centre under RM13.6 billion allocated to improve the nation's transportation infrastructure.

  • The government is urged to re-negotiate with highway toll concessionaires and independent power producers to protect public interest within a six-month period and in the event whereby no significant headway is made in the negotiations, it is proposed that the government acquire the assets of these entities and the resultants of the savings will then be passed on to consumers.

  • A 1 percent reduction of the top tax bracket to 27 percent is proposed while the first RM15,000 chargeable income will become tax exempt, with the subsequent RM15,000 taxed at 7 percent, to help Malaysians cope with the rise in living expenses. Currently, only the first RM2,500 is tax exempt while the subsequent RM2,500 is taxed at 1 percent.

  • Approved Permits (APs) currently issued for free shall be auctioned to the highest bidders. This will provide an estimated additional RM1.75 billion to the government coffers.

  • Women to enjoy an extension of maternity leave from 60 to 90 days if they have worked for at least 180 days prior to delivery with the employer.

  • RM240 million is allocated as grant to non-governmental organisations.

    • 'Dilute people's anger'

    Pua, who is a trained economist, said the measures contained in the shadow budget which took months to furnish were adopted from "global best practices" and had been proven successful.

    He added that the budget also included proposals and feedback from relevant groups such as disabled groups, women organisations and environmentalists on policies affecting them.

    A copy of the DAP budget will be submitted to the Prime Minister's Department tomorrow.

    Meanwhile, asked about his expectations for the forthcoming official budget, Guan Eng said: "It will be an election budget to dilute the people's anger towards failed government policies and its heavy-handedness in issues like the pig farms, the declaration of the Islamic state, Negarakuku...

    "You name it, they have done it," he added.

    Prime Minister Abdullah Ahmad Badawi, who is also the finance minister, will table his fourth budget in Parliament on Friday. The budget is expected to be the last budget before the next general elections.