KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak tonight rejected claims that mega projects such as the MRT and East Coast Rail Link (ECRL) would drive the country further into debt and adversely impact the economy.
Najib explained that such projects would instead have a positive impact.
"It will stimulate the economy. When the economic growth rate increases, it will bring a lot of benefits to the people," said Najib on the "Bicara Empat Mata" programme aired on RTM.
"Secondly, when we build infrastructure for the people, it provides employment benefits for our children. Thousands of our children graduate from local and foreign universities each year; we can't expect all of them to work for the government," said Najib.
He said the MRT project, for example, provided employment for qualified local engineers, who were employed by conglomerates such as MMC-Gamuda and other subcontractors.
He added that such infrastructure were also necessary to improve the nation's productivity.
"If we are stuck in traffic jams every day, we will be angry with the government as well. Productivity will be affected. If it takes three hours to get to work and three hours to get home, that is six hours per day. Others will laugh at us if we want to call ourselves a developed nation," said Najib.
On top of infrastructure projects, Najib said the government was also deeply committed to improving the quality of life through the availability of affordable homes.
"We need to provide more suitable housing. When we talk about affordable homes, it needs to suit the income of those buying them. If the B40 group is earning RM3,000 or less, the houses built for them should not be the same as those in the M40 group," said Najib.
"If for the M40 group, the houses built are RM300,000 and below, then for the B40 group the houses they can afford are between RM60,000 and RM70,000. The government will increase the number of affordable homes and I can see that many are already in progress, but the problem is in land acquisition.
"Urban land is expensive. We want to acquire them at the minimal price point, which would make it easier to build homes for the B40 group."
He said the People's Housing Projects (PPR) had been heavily subsidised, as the prices are at RM35,000 per unit, which actually cost RM140,000, with more than RM100,000 subsidised by the government.