KUALA LUMPUR: Political analysts believe Prime Minister Datuk Seri Najib Razak is in prime position to take advantage of a people-friendly 2018 Budget as several “events” have favoured Barisan Nasional over the past year.
They said this included the positive results of by-elections as well as the Sarawak election last year.
Universiti Malaya political analyst Dr Awang Azman Awang Pawi said the instability in Pakatan Harapan, riddled with infighting, had also boosted people’s support for and confidence in BN.
“The withdrawal of Pas was a major blow as Pas supporters had given their votes to the candidates from their ex-partners in (the now-defunct) Pakatan Rakyat. The 2018 Budget is expected to prove that the Malaysian economy is stable despite Pakatan Harapan leaders claiming that Malaysia is a failed state,” he said.
Najib, who is also finance minister, will table the 2018 Budget on Friday, and political and economic analysts believe it will have a “feel-good factor”.
Universiti Utara Malaysia senior lecturer in international politics and Asean relations, Dr Muhammad Fuad Othman, said he believed that next year’s budget would create many opportunities for Najib to gain votes for BN.
He said the improving economic stability and government’s revenue from the Goods and Services Tax (GST) would provide Najib the opportunity to table a more people-friendly budget.
Fuad said it was time for the government to give more tax breaks to ease the burden of middle-income earners.
“The amount of GST collected, which is RM42 billion, is substantial. So, this can be used for the people, such as tax breaks.
“Although there are many initiatives to help the B40 (Bottom 40 per cent) group, such as the 1Malaysia People’s Aid (BR1M), it (obviously) did not benefit all segments of society.
“The concern is for middle-income earners. They don’t belong to the B40 group, so they were deprived of what others were getting,” he told the New Straits Times.
Fuad said the issue of cost of living remained one of the main ones for many Malaysians, which was why giving more tax breaks was important.
Having a feel-good factor budget, he said, would not only help BN retain the government, but would help the coalition get additional seats.
“Another point is on government servants. If they are happy, it will help the prime minister in the 14th General Election,” he said, adding that though civil servants always benefited in national budgets, in the past few years they had been receiving only small incentives.
Universiti Sains Malaysia political expert Dr Sivamurugan Pandian echoed Fuad’s views, saying tax breaks would reduce the cost of living, and consequently “put Najib and BN in a favourable position” as it could attract “fence sitters” to vote for BN.
But he also advocated that next year’s budget also focus on efforts to create jobs.
“Forget about those who are loyal to opposition parties. They won’t change their mind. Focus on fence sitters and understand what they want.
“Fence sitters will make their decision based on current issues and these issues include getting tax breaks, unemployment, social security, business opportunities and poverty.”