LETTER: We echo the call of "Teguh Kita, Menang Bersama" in the 2021 Budget concluding remarks. This unprecedented time requires great cooperation, driven by compassion and empathy from all — the government, industry players, politicians and the rakyat.
On healthcare, RM3 billion has been allocated to procure vaccines through the Covax platform. If we follow the previously reported cost of RM600 million for three million doses under Covax, this amount is only sufficient for 15 million doses.
It was mentioned that the Covid-19 fund has been increased from RM45 billion to RM65 billion. Perhaps a portion of the additional RM20 billion includes costs for bilateral deals to secure vaccines.
On digitalisation, digital transformation appears to be a significant focus, with substantial emphasis on small- and medium-scale enterprises (SMEs) through the Industrial Digitalisation Transformation Scheme valued at RM1 billion.
Given that most businesses in Malaysia are SMEs, providing over half of the national jobs, we applaud the focus given, but its sufficiency and effectiveness to increase Malaysia's SMEs' competitiveness remains to be seen.
The 2021 Budget included a RM1 billion special incentive package for high value-added technology to support elements, such as research and development (R&D) investment, a 'High Technology Fund' worth RM500 million to support high technology and innovative companies, and a RM400 million allocation to support developments in science and technology for R&D involving several ministries and agencies.
Though these are highly welcomed, these can be spent by large multinational technology giants. This could be an underfunded area, especially as a national budget in the trajectory towards a high-tech nation.
As for vaccines development, the 2021 Budget allocated RM100 million from the proceeds of the Prihatin Sukuk for researches related to infectious diseases covering vaccine. Though this may be referring to early laboratory research, a single vaccine development can easily cost billions of ringgit.
There was no mention of the National Vaccine Centre as well, but given that vaccine development is costly, time consuming with low success rates, it's likely that this plan has simply shifted to focus on more pressing matters as indicated in the higher operational allocation versus development budget.
Participation from companies that may have benefited well during the pandemic to "give back" is an example of economics of empathy and shared prosperity. It was mentioned that Top Glove, Hartalega, Supermax and Kossan committed to contribute RM400 million in the fight against Covid-19, including to support the cost of vaccines and medical equipment.
There has never been a time where the call for unity is more crucial. The issues meant to be addressed through the 2021 Budget cut across political sentiments, and the apparent general divide in the ethnic dimension in terms of support for the government.
The same theme emerged across our latest research findings where respondents across the ethnic dimensions showed clear signs of political fatigue and desire to stand united to combat the unprecedented challenges faced. The push to be a "high-income" and "high-tech" nation may, however, call for higher allocations.
DR MARGARITA PEREDARYENKO and AMEEN KAMAL
EMIR Research
Kuala Lumpur