PKR has called on Putrajaya to ensure that the revenue projections for Budget 2023 are accurate, true and fair. 

It said the government should not repeat its past mistake of being overly optimistic in its revenue projections.  

Subang MP Wong Chen said it is crucial that revenue projections be accurate as any wrongful projection will not only disrupt government operation next year but also cause a negative cascading effect on its overall expenditure. 

“Noting the recent spike in the cost of subsidies to RM77.7 billion, PKR is urging the government to start exploring in earnest other sources of revenue.“Such as the progressive capital gains tax on shares and inheritance tax, and to come back with some models for us to consider,” he said in a statement today.

On August 13, Wong, Nurul Izzah and Fuziah Salleh represented PKR at a pre-budget meeting with Finance Minister Tengku Zafrul Abdul Aziz. 

At the end of the meeting, the parties agreed to have at least one more meeting before the tabling of Budget 2023, now slated for October 7.

Wong suggested that the government direct state-owned oil company Petronas to revamp and reduce the high profit margins enjoyed by all its vendors. 

“By implementing a more competitive, transparent and accountable vendors’ policy, PKR believes that Petronas profits should dramatically improve.

“We argued that these increased profits will be crucial to help reduce the unsustainable national debt level.” 

On development expenditure, he cautioned the government to tighten up its mega projects, irrespective whether these have received direct funding or via private finance initiatives, and only pursue those which are reaching completion or deemed absolutely necessary. 

“These projects should be done on a strictly competitive and open tender basis, priced fairly and most importantly ensure that they are able to generate real economic multiplier benefits. 

“For too long the costings of mega projects have been corruptly inflated, resulting in no or at best, minimal economic multipliers.”

As for operating expenditure, Wong said PKR is aware that there the government has limited capacity to pursue new policies, and as such, PKR urged the government to give a greater focus on subsidies for 2023.

“We are aware that a sizeable portion of most subsidies are lost to abuses and smuggling activities. 

“We are of the view that the current universal petrol subsidy is unsustainable and benefits the rich much more than the B40, and as such suggested that government explore tiered pricing and cash transfers as possible solutions.”

On currency and inflation, he asked that Bank Negara be given freedom from undue influence of politics, to pursue a prudent monetary policy.

“We also asked the government to direct government-linked investment companies (GLICs) to reduce their foreign equities portfolio and to return these money to Malaysia, so as to defend the ringgit.”

Wong added that they presented a list of 12 economic, political and social policies to help the people. 

“We took the position of explaining and highlighting these policies and then we asked the government to consider the same and indicate possible budget allocations in the next meeting.”

The 12 policies are: 

1. To expedite the approval of migrant workers permits to help SMEs and employers recover from the pandemic.

2. To address the learning loss of students during the pandemic.

3. To help the tourism industry with workers and capital, as the industry can be a good income source to help defend the ringgit.

4. To be much friendlier to foreign residents who bring in much needed capital, skills and economic consumption.

5. To address food insecurity by empowering farmers and fishermen, and improving supply chain logistics.

6. To boost technical vocational education and training (TVET) and address the perennial underemployment issues.

7. To prepare now for floods and to set aside a sizeable fund for rescue and relief efforts.

8. To improve on gender-responsive budgeting and to ensure ministries comply in terms of reporting.

9. To budget and prepare for the passing of the Parliamentary Services Act, and to move the Constituency Development Funds to parliament from the Prime Minister’s Office.

10. To ensure the full roll-out of HPV vaccines for girls in all schools.

11. To further promote the implementation of sustainable development goals at all levels of government.

12. To allocate an adequate budget to properly monitor climate change and to prepare for carbon trading. – September 15, 2022.