BEFORE the tabling of the 2017 Budget, the Barisan Nasional (BN) had achieved great success in the Sarawak state election as well as the two by-elections that followed.
And because of this, many have speculated 2017 to be the best time for the general election. Thus, people excitedly awaited ‘treats’ and ‘goodies’ when Prime Minister Datuk Seri Najib Tun Razak tabled the 2017 Malaysia Budget in parliament.
It has been more than a week since the Budget was passed and we have seen detailed analysis and interpretations from the experts in the electronic, social and print media.
Now, would this be the ‘last budget’ before the general election? There is no definite answer since not many people feel the budget is ‘particularly good.’
When we talk about pre-election budgets, we think of ‘election treats.’ And towards this end, the lollies given out to the 1.6 million civil servants in this country would often become a hot topic before the general election.
How Prime Minister and Finance Minister Najib had skilfully listed out the nine major benefits and RM500 special incentive for civil servants has stereotypically made the civil servants the major winners.
Despite the media’s scepitism, the civil servants are still the winners. However, from discussions on social media and feedback from government servants who have been interviewed, it is apparent that the members of the civil service themselves do not seem to think their ‘treats’ are as sweet as perceived. Their sentiments are aligned to the words of Congress of Unions of Employees in the Civil Service (Cuepacs) president Azih Muda who said the benefits ‘are just flashy.’
Since we’re talking about pre-election hype, another important point to look at – besides civil service perks – is the benefits for the lower-middle class.
Unfortunately, on the eve of the 2017 Budget, the Malayan Oil Association announced the implementation of the new oil stabilisation plan, starting from next month.
This means subsidies for edible oil will be gradually reduced and a ‘price storm’ is expected to hit the catering industry, once again impacting the lower-middle class significantly. Be that as it may, the most notable item in the Budget which actually let out of a whiff of a plausible fast-tracked general election was the honouring of the promise made by the BN government in the last election to increase the maximum amount of the Bantuan Rakyat Malaysia 1 programme (BRIM) to RM1,200.
Although BR1M has repeatedly been criticised, some economists believe the programme may be benefitting the lower-middle class with the provision of spare cash to spend, thus stimulating the market. Certainly, with the 1MDB scandal and the ringgit’s fluctuation, our country’s potential in attracting foreign investors has been called into doubt.
However, according to Najib, foreign investments have risen by 32 per cent in the first half of this year over the same period last year.
The Prime Minister has also made a fruitful visit to Germany to further boost economic co-operation between the two countries. He aims to take China ties to ‘new highs’ as well on his upcoming visit there and has advised the people to not spread rumours that will potentially hurt the economy.
It’s still early to say if Budget 2017 precedes an early general election. We have to look deeper into the political and economic variables over the next six months to get a clearer picture.