We will explain Budget 2019 clearly to stakeholders, says Dr Mahathir

Prime Minister Tun Dr Mahathir Mohamad was just stating the truth when he said that there would be no amendment to Article 153. As such the Opposition

KUALA LUMPUR: The Budget 2019 must be explained to the stakeholders in a proper manner because the reaction to it by the market is vital to the nation’s economy, said Prime Minister Tun Dr Mahathir Mohamad.

He added that Finance Minister Lim Guan Eng needs to address the relevant industries with a detailed explanation.

“In particular to the market forces because their reaction is crucial. If they don’t understand, then maybe their interpretations might not be accurate.

“This is why the minister and other officers, including from Bank Negara and the Finance Ministry, need to do their explanations,” he told reporters in a press conference at the Parliament lobby after the tabling of Budget 2019.

Also present were Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail, Lim, Health Minister Datuk Seri Dzulkefly Ahmad, Transport Minister Anthony Loke and Water, Land and Natural Resour­ces Minister Dr Xavier Jayakumar.

The Prime Minister said the Budget was comprehensive and every sector was given attention.

He however also hoped that the media will analyse the Budget documents further and give their feedback or seek further clarification so that the information can reach the target groups.

“We are prepared to answer all queries,” he added.

While the national fiscal deficit of 3.4% for next year could cause a downgrade in the international economic ratings, Dr Mahathir said that measures have been announ­ced to lower the deficit.

Dr Mahathir said the Pakatan Harapan government is committed in reducing the nation’s fiscal deficit over the next years.

“We were very careful on how the money is going to be dispensed. Although to the Budget is more than the previous years, but you must remember we are carrying the burden of past debts incurred in the previous years,” he said.

On the 10-year RM7.4bil Samurai bond, Dr Mahathir said the interest rate for this bond was much lower.

He said that the previous Barisan Nasional government took loans at an interest rate of 6% but only got 90% of the sum.

“So the interest rate was on 100% (of the sum) and the interest rate had gone up to 7%.”

It was announced in the Budget that the Japanese government had guaranteed 200 billion yen of 10-year Samurai bonds, via Japan Bank of International Cooperation, at an indicative coupon of 0.65%.

The bond will be issued before March next year.

Dr Mahathir said most of the money borrowed was to retire some of the costly loans taken by the previous government.

“From 7% to 0.65% is a considerable reduction (in interest rate),” he said.

Asked if there would be more borrowings, Dr Mahathir said this was the first tranche and there may be more coming from Japan which would carry lower interest rates.

Asked if the Budget fulfils the rakyat'’s aspiration, Dr Mahathir said the government tried its best not to table a Budget that was beyond its income.

“If we don’t have money, we will not spend,” he said. “We spend only what we can. We’re very careful.”