BUDGET 2021 lacks imagination and fails to reach those hit hard by Covid-19-imposed lockdowns, said economists.

The Muhyiddin Yassin government allocated RM322.5 billion on an expansionary budget. 

But Malaysia has to spend the money wisely as no one knows how long the pandemic will last and how it would pan out, said Khazanah Research Institute senior adviser Jomo Kwame Sundaram.

“The country is already experiencing its third wave (Covid-19). 

“So, for developing countries, we cannot adopt wholesale measures that are for developed economies,” he said during a forum Analysing Malaysia Budget 2021. 

Jomo was commenting on Budget 2021, which was unveiled last Friday and touted as focused on healthcare and economic recovery.

The budget is disappointing as measures like Prihatin were introduced months ago, said Jomo.

“The budget by and large lacks imagination and recognition that much more is needed.

“For example, during the first lockdown (March), the relief measures were quite good (Prihatin) for certain communities, but at least 30% to 40% of population didn’t benefit.

“I’m referring to the daily rated workers, who don’t get an income if they don’t work.”

More cash aid

The movement restrictions are the most disruptive on those who can’t go to work, such as in offices and factories, he said.

“We find that many measures (Prihatin) were introduced in the last eight months and in different amounts.

“But much more is needed to get the economy going.”

Jomo said the government needs to understand the population and what policies will work for the people.

“As far as the economy is concerned. We do not know what the future is going to hold.”

Penang Institute senior fellow Frederik Paulus said the budget was not bold enough.

“There was probably enough room to give more aid. When you look at the impact of the movement-control order, there is uncertainty when there will be another lockdown.”

The problem now is the uncertainty, he said.

“For instance, when a vaccine is available, we can maybe start to normalise.

“We can hope to come out early (from pandemic) but, the problem now is the uncertainty.”

Paulus said one positive outcome of the pandemic is for companies to hire more locals when they stop hiring foreign workers. – November 14, 2020.