I would like to thank MCA president Datuk Seri Liow Tiong Lai and the entire leadership for inviting me once again to officiate the 61st MCA Annual General Meeting (AGM) this year. As mentioned by the president earlier in his speech, I arrived at Wisma MCA today to see the murals that were set up by MCA, which give a picture of MCA's journey from its inception in 1949 until today.
I congratulate MCA for trying to remind all its members and us of not just MCA's journey, but also the history of the country's formation. The MCA had played a very big role since its formation in these two momentous events.
Therefore, it would be apt for me to say that the birth of the nation and contemporary Malaysia is due in part to the role of MCA and the Chinese community, couple with the efforts of the bumiputeras and other ethnic groups. That is why our success as a nation, given its multiracial, multi-religious, and multicultural makeup, is some very special.
In whichever country I visit, I get reactions from foreign leaders, saying they are impressed with Malaysia. They ask me: "What is the secret to Malaysia's success?" They don't see how a complex community can live in a peaceful and harmonious environment.
In U.S. President Barrack Obama's speech at the United Nations recently, he recognised Malaysia as a country that is fast developing towards becoming an advanced economy. That is why we cannot take for granted the things we have achieved so far. We must appreciate the sacrifices of past leaders.
Our forefathers helped build the country from scratch and laid the foundations of the country's uniqueness. In fact, the social contract forms the bedrock of our country. The social contract has since been translated into many kinds of laws and policies, and the social contract is enshrined in our Federal Constitution.
That is why when we learn about history, we will learn that the constitution is the pillar of the country. The constitution cannot be challenged by anyone because it enables our complex community to not only become successful, but also transform the country into a developed nation in the next few years.
I was asked by journalists recently when I was preparing the Budget. The journalists asked me: "What challenges do I face as the Prime Minister and Finance Minister?"
I said, there are two major challenges. The first is, how can I be fair in the allocation of resources to all races? How do I strike a fine balance between and cater to the needs of the various ethnic communities?
Secondly, how do we balance between populist policies and what is necessary in terms of economic and business imperatives?
Sometimes, the two form an inherent contradiction. These are the two major challenges in running the country. But for the most part, we have more or less got the balance right.
However, we always have seen, and listen to the views of the people. That is why I always say we must feel the pulse of the people. We must listen to the grassroots; we must hear what the people are saying.
By doing that, we can not only do what we think is right, but also further improve those plans. We cannot hold the notion that everything we do is absolutely right. We have to strive to do better and better.
I will not be too defensive as a leader and say all is perfect, but as I said, we got everything more or less right. But there is still room for improvement. The problem is how to satisfy everyone. We listen to what is being said during MCA's AGM, but when I enter MIC's AGM, I hear other things. And when I go to Umno's AGM, I hear other things. But as a leader. I must be fair to all the component Barisan Nasional (BN) parties.
I am confident that trust that the country is on the right track towards becoming a developed nation. I want to see, in particular in the Economic Transformation Programme (ETP), that the Chinese feel they are playing an important role towards that goal. We cannot deny the entrepreneurial skills of the Chinese. We cannot deny that they have contributed a lot to the development of the country, towards the increase of our country's Gross Domestic Product (GDP), and our success in the export market.
Therefore, I will review all roles that can be played and tweak them so that the Chinese feel that the new economic model and ETP are inclusive. It's not just about Bumiputeras; it's also about the Chinese and Indians. It's about us as Malaysians.
In this year's Budget, I tried to do my best by holding an underpinning philosophy. I have said that we need to look at the capital economy. We need to increase our GDP, we need more investment, we need our composite index to increase. We need innovation and we need infrastructure so that our economy growth is between 5 and 6 per cent.
But if we focus entirely on capital economy, what will happen is that the income gap between the rich and the poor will widen. It's not just about the Bumiputeras and the other ethnic groups. The income in general will get bigger and bigger.
The wealth of the United States is not enjoyed by 10 per cent of its population, but just one per cent. That is why I said besides capital economy, we must look at people economy. When we focus on people economy from the ground up, we can build the economy and yet focus on providing affordable housing, cheaper education and lowering cost of living for the lower income groups.
We give people tax rebates and they can still enjoy the country's riches. It is a compassionate market economy.
If we focus on the big figures, yes, the economy's growth is 6 per cent, but the people don't feel it. This is what I mean by the difference between the figures and what is felt by ordinary people. We in BN must make sure that every single Malaysian is much better off today that yesterday. This is the government's philosophy.
When we introduced subsidy rationalisation, we reduced subsidies and the people became angry with the government. But when the people saw in the Budget that the extra money will go back to the people. they understood.
Is RM2 billion in subsidies sustainable? Of course it is not. The Chinese community knows about business, you know about finance. You know that running the country is something like running a business. You cannot borrow money to pay your workers. If you have high fiscal deficit, you will be another Greece in no time. For us to become an advanced economy, we must address the structural problem: our tax base is too narrow.
Those who pay tax are two million working Malaysians. But the total number of working Malaysians is 13 million out of the country's 28 million-strong population. You cannot milk from just the two million.
In other words, even if you don't pay tax, you get to enjoy education and all the health facilities for free. You get policemen to patrol your neighbourhood for free. That is not fair. So, we widen the tax base based on consumption. That is progressive tax. 160 countries have implemented Goods and Services Tax (GST); can they be wrong? They cannot be wrong.
Plus, we are using a soft-landing approach, where many items are exempted from GST, including RON95 petrol. We want the people to understand that this is a restructuring measure. With this soft-landing approach, the people will accept GST as something that is for our own good. We will realise that fiscal sustainability is good for the people, good for the economy, and good for business.
I read the opposition's alternative Budget and they wanted to widen the tax base by introducing Capital Gains Tax (CGT). That means if you sell your shares, you get taxed. The stock exchange will go down and there will be capital flight. This will affect businesses and affect your income. That is not the right prescription.
GST is much better than CGT. CGT is not business-friendly. It will not create more wealth and Malaysians will invest in other markets. Meanwhile, our own market will be less competitive. You cannot stop the flow of capital just like you cannot stop the flow of information today. When money flows out, there is less wealth. Don't mention the rich; even ordinary people who hold Permodalan Nasional Berhad (PNB) shares will be affected as PNB would not be able to pay high dividends.
That is why I say the opposition don't think carefully. Their plans are not well thought out because they themselves are not well. They want to do the Kajang Move, and then there is a fiasco in Selangor, followed by months of infighting. Why? Because the level of distrust in Pakatan is very high.
Imagine if what had happened in Selangor happened throughout the country. What happen then? The country will be very unstable and we cannot afford that. I say there is no better and more viable option other than BN. We must tell the people this.
The opposition have been tested and they have serious problems. You cannot afford these kinds of problems at the national level.
I endorse MCA's transformation programme as we need a strong MCA to move forward despite only two of its leaders are in the Cabinet. But that is not my fault. Only two ministers in MCA but they are playing their part to help the Chinese community.
That is why when Liow and (MCA deputy president) Datuk Dr Wee Ka Siong approach me for help, I will consider their proposals.
As BN chairman, I try to be fair. I’d like to do more, maybe one day I can do more. But I also need the Chinese community to support BN. Come on. You have to do your part. You can’t demand and then support DAP. You can’t demand and then support Pakatan. You demand, you support BN, we will be fair to the Chinese.
MCA is our partner, and MCA, please don't fight among yourselves. I've had enough and I am tired of it.
I am also in a difficult position. One person tells me this and another person tells me that. They want me to choose this person to contest in the general election because he is on their side. Even if there is a better person, they will say: "But he is not on my side". As BN chairman, I don't know every single leader. I have to rely on the President of MCA to submit names of the most winnable candidates.
But if there are Team A, B, and C, I will get confused, We are all in difficult situation, including the BN secretary-general and the deputy chairman. So I say that the future of MCA depends on unity.
If we always argue, people will get fed up and tired of hearing about fighting. Just like Pakatan fighting in Selangor, people are tired. So, unite, be together. Stronger together. That is your theme.
The second thing I want to say is that, MCA must have a sense of direction because when you fight, you have lost your way. It is not I who say this but I am reflecting the views of the Chinese. They tell me MCA has lost its sense of direction. But under Liow's leadership, I am confident MCA has that sense of direction and purpose. I will support the current leadership.
Do your best. I support MCA's plan to implement the Medan Inovasi 1Malaysia. We can sit down and work out the details how to go about it. I am asking Koperasi Jayadiri Malaysia (KOJADI) to distribute RM50 million to small and medium enterprises (SMEs). When the government approves an allocation, the execution is always the problem. If KOJADI can execute this plan, they can help collect the debts. KOJADI will be the agent for the government to help SMEs.
We can continue to have a bright future for everyone in Malaysia. I want to mention MCA's slogan "Stronger Together". And I want to add to it: "Stronger Together. Together We Can. Together We Can Succeed."
Together, we can win the next general election. Together with MCA, Umno and all the other BN component parties, we will be the party for all Malaysians.