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Agenda for Action. July 25, 1998.
Urge the Government to increase the allocations, say another RM100 million, to the various ministries for the social safety net, such as the Health ministry and ministries involved in rural development and agriculture.

 
From the National Economic Recovery Plan released by the National Economic Action Plan on July 23, 1998, the six objectives do not look too bad. If these can be successfully implemented, they will go a long way to recover confidence in our economy.

Yesterday, I have talked about the need for the Government to announce the sources of funds for the stimulus funds of RM12 billion and the proposed Asset Management Company. As the country is short of money, we have to seek funds for the various plans.

One of the six objectives of the Plan is to continue with equity and socio-economic agenda. There are compensatory measures to reduce the impact of the turmoil on the poor. Certain things are acceptable. For example, the retention of the original budget allocation for the Programme Pembangunan Rakyat Termiskin, plus an additional budget of RM1 billion World bank Loan, and the allocation of RM200 million of the World Bank loan to provide assistance to petty traders

and hawkers in urban areas.

On the other hand, the attempt to cut the 1998 budgets of ministries offering the social safety net such as the Health Ministry and ministries involved in rural development and agriculture is a mistake. It is hoped that the RM200 million for rural infrastructure from the World Bank may provide multiplier effects.

We believe that the allocations for the social safety net should not be cut. Not only should they not be cut, they should be increased. Perhaps, there should be additional RM100 million for the purpose. We hope the Government would give the details on the amount reduced.

The Plan has not mentioned any measure to ensure that all projects are for the benefit of the people, not for the privileged few. Neither does it try to stamp out the wanton waste as seen in the Kuala Lumpur International Airport, KLIA. Yes, we need the airport. But, we do not require wastage. Is the RM9 billion spent on KLIA cost-effective?

By Dr. Tan Seng Giaw

 

 
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