Hornbill Unleashed

October 7, 2014

Budget 2015 to address inflation

Filed under: Politics — Hornbill Unleashed @ 8:00 AM
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budget2015K Harinderan

Najib is expected to emphasise measures to make goods and services affordable.

Analysts believe Budget 2015 will focus partly on reducing the impact of inflation on the poor and those earning medium-level incomes.

They say it is likely to delve into allocations and incentives to ensure the welfare of those two sections of society, who together make up the bulk of the Malaysian population.

The line separating the poor and middle-income sectors of society is said to have blurred because many in the latter category have fallen below the poverty line as the cost of living rises. This is especially true of those living in urban areas.

The so-called “people centric” budget, to be tabled this Friday by Prime Minister Najib Razak, is expected to emphasise measures to ensure the affordability of goods and services.

Some say the recent fuel price hike has caused or will cause price increases in 90% of goods and services. Najib is expected to take this into account.

Bantuan Rakyat 1Malaysia (BR1M) is expected to be increased to RM900 for those earning a household income of RM3,000 a month or less. For singles earning RM2,000 a month or less, it is expected to rise from RM350 to RM500.

Najib is also expected to present specific incentives or improved plans to enable youths to purchase homes.

Speculation in real estate has caused the prices of homes to be artificially inflated. Analysts say this is due largely to the absence of a strict control mechanism put in place by the government. They say there has to be an affordable home ownership programme to mitigate against this challenge and it must be based on realistic buying power.

The budget is also expected to address the need to give more citizens access to higher education as well as provide incentives to improve the knowledge economy.

Analysts expect a bigger allocation for the PTPTN study loans to enable students to pursue post-graduate degrees, which in turn would spur on the K-economy. More funds will probably also be set aside for research and development and incentives given for researchers to commercialise their products.

Another focus of the budget will be the small and medium-size enterprises (SME) sector. According to a financial analyst, the challenge to enlarge the SME sector has to be met first and foremost with incentives that will produce more skilled workers. He said there had to be more funds for training and incentives for workers to succeed in their chosen skills.

Other likely announcements in the budget are a salary rise for civil servants, an increase in the allocation for book vouchers for students, more incentives to promote training in agriculture, and bigger allocations to help disabled citizens as well as single mothers.

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2 Comments »

  1. Najib has been having supplementary budgets to spend more and incur more debt to the nation.

    Comment by loo — October 7, 2014 @ 12:07 PM | Reply

    • So the budget will look good, but supplementary budgets will alter screw it up?

      Comment by KKK — October 10, 2014 @ 11:01 AM | Reply


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