KUALA LUMPUR, Dec 10 – UMNO has proven successful to bring the country’s economy to a higher level after running the country. Its president, Datuk Seri Najib Tun Razak said the global competitiveness report 2015-2016 by the World Economic Forum, Malaysia has jumped two places to position 18 of the 144 major world economies.
He said this achievement demonstrates that the government managed to bring people to the high economic level and there can be no begging people under his leadership. He said this achievement demonstrates that the government managed to bring people to the high economic level and there can be no begging people under his leadership.
“One example to be proud is the construction of Gas Platform in the Caspian Sea, the management of the Second International Airport in Istanbul, investment of Shale gas is also Foreign Direct Investment or FDI in Canada the results of the children of our nation,” he said in his policy speech at the Umno General Assembly 2015 at the Putra World Trade Centre (PWTC).
In addition, he said they will also became the second largest provider of health services in the world as well as facility maintenance and operation of Mecca Metro station while everything is the result of the party struggle. Meanwhile, on the implementation of the Goods and Services Tax (GST) on April 1, he said, it is the right step and become the savior of the nation’s economy continues to slide as a result of global economic pressures.
He said the people need to know, before 2015, 31 percent of government revenue comes from oil revenue. The government’s revenue fell sharply due to the deterioration, however, crude oil prices are expected to remain low, which will cause government revenue is expected to be reduced by about RM30 billion.
If this happens, the agencies leading international legitimation such as Standard & Poor’s and Fitch Ratings, would downgrade the country’s credit rating. He added that it will also cause interest rates on loans such as personal loans, mortgages and business loans soared.
“In this context, it is inconceivable, if the government does not have the political courage to continue to implement the GST, the government’s fiscal balance of the current account will record a deficit of 10.6 billion ringgit. It will also boost the country’s deficit from 3.1 to 4.8 per cent in the first year and may be much higher in subsequent years,” Najib said.
“As a result, the government may be forced to borrow to pay the salaries of civil servants, including teachers and military personnel. If it happens, there is no annual increment in personnel, as well as travel allowance, even the occurrence of freezing and no new decision has been made, to perhaps have also shrink the size of the civil service,” he said.
“If the GST is not implemented not impossible economy will decline, the investment will be affected and jobs will also be eroded. Thus, the GST is a rescue and protect people from more serious distress if they are not implemented. In addition, the depreciation of the currencies that are of concern not because of failure of the government to manage the economy, but is caused by external factors,” he said.
“Among them, the fall in oil prices and other commodities, the contraction of the growth rate of China’s national economy and interest rates in the US are expected to rise. Overall, it is recognized by the world as external factors as the cause not only of India, but also seemed to most countries emerging economy. In fact, countries like New Zealand and Australia also suffered severe decline,” he added.
