KUALA LUMPUR: The government is concerned with the the rising cost of living and is taking measures to provide relief to lower-income groups, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.
He said the measures include exempting or zero-rating basic goods and services that take up the major percentage of the lower-income groups’ spending.
“We are now finalising this list of goods and services,” he said in his keynote address at the 18th Malaysian Banking Summit here today.
He said as the country moves steadily to achieve its high-income ambition, there would no doubt be a greater gap in income between those with education, skill-sets and capital and those without.
“We can see this pattern in developed countries and while this pattern may not be apparent during a time of economic expansion, it will be obvious in times of slow economic growth,” he added.
Husni said the government believes strongly that the financial position of the nation’s Treasury must be strong before anything else.
“In this regard, the government is reducing the budget deficit. For this year, we are reducing it from 3.9 per cent to 3.5 per cent,” he said.
He said the government is also reforming the tax regime by widening the Treasury’s revenue base and gradually reducing dependence on direct taxation.
Husni said there were times when the government seemed to introduce policies and measures perceived to be unfavourable to some sections of society.
“But we would rather do good than be popular. We must take care of the long term, we cannot sacrifice the long term for short-term expediency,” he stressed.
Husni also said the government has and will continue to provide access to essential resources to ensure there is every opportunity for all Malaysians.
While Malaysia has been succesful by all measures in efforts to eradicate poverty and would continue to reduce it to the minimum possible level, the government has also ensured there is greater equitability in the nation’s wealth, he said.
“The government has never deprived a group for the benefit of others.
“We also adopt policies that are nuanced, with various degrees of accommodation to many variables in our economic eco-system,” Husni added.
– BERNAMA