PETALING JAYA: There is much that can be done so that Malaysians can benefit more from Budget 2023, say economists.
Malaysia University of Science and Technology Research and Innovation provost Prof Geoffrey Williams said general public handouts in particular, should be reformed given how “inefficient and ineffective (existing) systems” could see potential beneficiaries missing out.
“Given the various handout schemes, such as food parcels and free tablets for students, there is a chance that many eligible beneficiaries either do not know about them or even how to apply (for them), which can see them missing out.
“Handout schemes for the rakyat also presents a 'middleman' problem, which can see leakages or wastage while also presenting an opportunity for corruption,” he said, adding that direct assistance was more beneficial for lower-income groups.
Prof Williams said welfare support should also be reformed towards a Universal Basic Income scheme.
“There is room to widen this and make it more generous by removing ad hoc welfare payments, given how the current scheme is rather ineffective.
“More attention should also be placed on pension reforms as a means to encourage more savings, alongside the introduction of a Universal Basic Pension scheme.
"Voluntary savings incentives should similarly be improved (by raising their limits) alongside giving more generous tax benefits for savers,” said Prof Williams, who is also a Malaysian Institute of Economic Research (MIER) non-resident senior fellow.
AmBank group chief economist Anthony Dass said there was a need to consider extending the 75% stamp duty exemption for real estate transfer documents and loan agreements for homes valued at RM500,000 to RM1 mil to all house buyers and not just first-timers.
“Although the exemption is positive, there should be consideration to apply this across all house buyers, with data showing that the appetite for residential purchases were improving, with more units sold in Negri Sembilan, Pahang, Terengganu, Perak and Penang," he said.
He added that a greater focus could also be given to the tourism sector, which includes extending the personal tax relief for domestic travel, utility rate discounts, along with regulating home-sharing industries (such as Airbnb) to provide a level playing field in the sector.
“There also has to be ways to continue providing incentives, funds and grants to help revive the tourism sector, particularly domestic tourism,” he added.
Dass, who is a member of the Economic Action Council Secretariat, said high living costs were another challenge Malaysia was currently facing.
“While the Consumer Price Index (CPI) basket shows low inflation, the underlying (inflation) is very high.
“Both a living and business cost index need to be developed while still maintaining the CPI and Producer Price Index (PPI) as this will truly reflect the living quality of the rakyat as well as business costs,” he said.
He also cited a lack of data not just at headline levels (of society) but also at micro levels, making it difficult to design good policies that will benefit the rakyat and the economy.
“This data should be made public for other researchers to work on and provide more inputs through their analysis.
“There is also a need to improve the coordination and cooperation at the government, state and local council level as this will really improve the nation’s overall economic performance,” he added.
Budget 2023 was tabled in the Dewan Rakyat on Oct 7 by then finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, but it was not passed before Parliament was dissolved and the 15th General Election called.
