Tun Dr Mahathir Mohamad says the government will undertake a mid-year budget review where the criteria for off-budget allocation should be scrutinised.
KUALA LUMPUR: Tun Dr Mahathir Mohamad says the government will undertake a mid-year budget review where the criteria for off-budget allocation should be scrutinised.
The Prime Minister said on Tuesday the review was to ensure transparency and budget integrity and budgeting process.
“Every expense on public money shall be recorded promptly and carefully monitored in accordance with the established financial procedures,” he said in his keynote address at InvestMalaysia KL.
Dr Mahathir also said the govt was introducing a Fiscal Responsibility Act to ensure public sector accountability in presenting the accounts and balance sheet of the country.
“We are also rationalising tax incentives for investments, as the current administration and governance structures of investment incentives is highly fragmented, costly, and ineffective,” he said.
The government was also looking into listing mature unlisted government entities on Bursa Malaysia.
He also said there will be no new tax for this year, except for sugar tax which had already been announced.
Below are the highlights:
Government is implementing the following macro strategies to strengthen economic resilience:
1) Driving productivity at all levels to ensure sustainable and inclusive growth;
2) Promoting quality investment to spearhead economic growth;
3) Embarking on intiatives for industries to move up the value chain;
4) Strengthening exports to improve the balance of payments; and
* Emphasising a fiscal consolidation path to ensure sustainability in the medium-term.
* A debt and liability management committee has been formed to look at the government’s balance sheet and implement strategies to reduce debt and liabilities, including government guarantees.
* Mature unlisted government entities may be listed in the stock market, as well reducing some of the GLCs shareholdings in the public-listed companies.
* The tax reform committee (TRC) are also in the final process of finalising the proposal in enhancing tax revenue.
* Corporate tax rate is already competitive. For this year, corporate tax rate will be reduced to 17% from 18% for SMEs with paid capital below RM2.5 million and businesses with annual taxable income of below RM500,000.
* For large companies, while the tax rate is slightly higher, the effective tax rate is less than 10% due to these incentives.
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