MIDDLE-class Malaysians are wondering how Budget 2018, with its incentives for rural folk, farmers, fishermen and civil servants, will translate into lower living costs.

While the goods and services tax (GST) was taken off certain items like reading materials and local council services, and toll was abolished on certain highways, they doubted that these moves would help ease their daily living expenses.

Real estate agent Wilson Moorthy from Penang said he was unexcited about the proposed RM280.2 billion budget tabled by Prime Minister Najib Razak this afternoon.

“I don’t see how it is going to help the people face rising costs and prices.

“I recently paid RM18 per kg for cuttlefish. Three days ago, the price went up to RM35 per kg. I asked the fishmonger why did the price go up by so much. He said it was because of rising petrol prices.

“Now, how does the budget address this,” the 50-year-old told The Malaysian Insight.

Moorthy also dismissed the GST relief for imports of “big ticket items” like aircrafts and ships by airlines and shipping companies, noting that they benefited big companies but not “regular folk”.

“People had been grumbling about rising prices of consumer goods, but only certain sectors like these big companies are getting relief,” he said.

Besides the relief for airlines and shipping companies, Najib also announced GST relief for cruise operators; construction services for school buildings and houses of worships funded through donations; and imports of oil and gas-related equipment under lease agreements.

Najib, who is also finance minister, also said services provided by local authorities; and management and maintenance services of stratified residential buildings would not be subjected to GST.

On personal tax, those in the earnings bracket of RM20,001-RM35,000; RM35,001-50,000 and RM50,001-70,000 will all receive a 2% cut on taxable income.

But Moorthy said even with the 2% reduction in income tax, people were still paying 6% GST and higher prices for consumer items and services.

Government retiree Sam Yee, 69, said he would have been happier to hear about GST exemptions on more consumer products and services.

“Services by local councils are now exempted, but what kind of services exactly? Quit rent? Assessment?”

But Yee was happy to get RM750 in special financial assistance from the federal government. The amount this time is three times what pensioners got under the 2017 budget.

“Last year, we got only RM250. What can I say? This is an election budget. From what I heard on the radio, it sounds like an election budget. Many groups of people are getting perks and funds… farmers, fishermen, rubber tappers, Felda settlers and as usual, civil servants.”

‘Nothing new’ for Sabah

In Sabah, businessman Christian Ampalang, said he found nothing new in the Budget 2018 for his state.

“The Pan Borneo Highway, it’s nothing new. It’s been repeated since 2016. It’s the same pledge over and over again. What Sabahans want to see is new highways being built. Not upgrades,” the 58-year-old said.

He felt the engineering quality of the highway was questionable, and cited the an uneven section of the highway from the Penampang roundabout to the Lok Kawi junction.

Street lights have also yet to be erected and it was dangerous for motorists using the highway at night.

It was the same with the proposed Labuan bridge, Ampalang said, noting that the state government had been refusing to allocate land for the bridge on the mainland side.

Even if the project went ahead, he questioned whether its implications on ferry operators had been considered, as their business would likely be affected.

What about other tolled highways?

On the scrapping of toll charges at Batu Tiga and Sg Rasau in Selangor, Shah Alam resident Ida Marjan said this should have been done years ago, noting that the Federal Highway did not have toll when it was first opened.

“It’s good news that we no longer have to pay tolls to enter Shah Alam and Klang starting next year but what about other tolls? We fork out at least RM10 daily for tolls to go to Kuala Lumpur,” the 49-year-old said.

Besides these tolls in Selangor, Bukit Kayu Hitam in Kedah and the Eastern Dispersal link in Johor will be toll-free starting next year.

Another regular Federal Highway user, Mohd Mustazza Abu Hapaz, said abolishing toll at Batu Tiga and Sg Rasau were the best thing about Budget 2018 as far as he was concerned.

The 30-year-old sound engineer said the budget was otherwise not very exciting for him, as most of its benefits seemed directed at the civil service.

Some good, some bad

Mustazza said the budget’s focus on civil service incentives showed it was meant to be an election budget. His views were echoed by a dermatologist in Klang, who wanted to be known as Chris.

“This budget does look as if it is meant for the general election; that’s the way politics is. I wouldn’t blame the government as any government in power would want to implement policies that would help protect their interests,” he said.

Other than the 2% reduction in personal income tax, Chris said the budget did not hold much else for someone like him.

But Islamic International University student Ahmad Naim, meanwhile, said he found the the book voucher assistance of RM250 helpful as many students often did not have enough money to buy the books they needed.

Other university students welcomed the extended grace period to repay National Higher Education Fund (PTPTN) loans from six to 12 months and the discounts offered to borrowers who could repay their loans in full or by 50% and via salary deductions.

Ganaesh Rajakumar, 20, said the discounts would help graduates with low starting salaries or who had families to care for.

“The grace period, especially, would give graduates some time to be in a stronger position in terms of finding work, given the problem of unemployment among graduates,” he said.

Custom tailor Musfirah Abdul said she expected difficulties with the 90-day mandatory maternity leave for the private sector that was announced in the budget.

“Big companies may not be affected but for someone like me, it will be difficult as I don’t have many employees,” she said, adding that she may have to consider hiring staff based on fixed-term contracts or pay wages on a daily basis. – October 27, 2017.