Prime Minister Datuk Seri Najib Razak, who is also finance minister, in a relaxed mood with Finance Minister II Datuk Seri Ahmad Husni Hanadzlah before he addresses the Budget 2012 Consultation series in Putrajaya yesterday. — NST picture by Izhari Ariffin
Next year’s budget would be in line with his administration’s policy of putting the people first and turning Malaysia into a developed and high-income economy by 2020.

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak has promised Malaysians an inclusive and people-focused Budget 2012 and hinted at possible cuts in personal and corporate taxes once the goods and services tax (GST) was implemented.

The government has not finalised when GST will be introduced but Najib said efforts were ongoing in educating the people about its advantages.

Opening the Budget 2012 Consultation series here yesterday, Najib said next year’s budget would be in line with his administration’s policy of putting the people first and turning Malaysia into a developed and high-income economy by 2020. “Let’s work together in making this a reality.” Formulation of Budget 2012 would be challenging, Najib said, as Malaysia must rise to the occasion and come up with bold and innovative approaches.

He said the budget would focus on accelerating Malaysia’s transformation efforts and preserving the well-being of the people.

For this year, the government budget was valued at RM212 billion or 2.8 per cent more than the 2010 budget.

The government, he said, must now meet expectations promised in his administration’s policy frameworks, such as the Economic Transformation Programme and Government Transformation Programme. Najib said Malaysiawas aiming at achieving six per cent growth this year but acknowledged that challenges were posed by the instability in the Middle East and North Afr ica.

“Cost-push inflation is on the rise and is a major challenge to many countries, including Malaysia.” Najib also said the government would remain prudent and ensure the people enjoyed a higher quality of life. He said hardcore poverty had been eliminated but there were pockets of poverty in Sabah and Sarawak, which the government had to tackle. In urban areas, Najib said emerging challenges included rising cost of living, increasing property prices and higher healthcare costs. Najib also called on non-governmental organisations such as the Federation of Malaysian Consumers Associations to play a role in explaining to the people the benefits of the GST.