KUALA LUMPUR – Syed Saddiq Syed Abdul Rahman claims that Budget 2024, as unveiled by Prime Minister Datuk Seri Anwar Ibrahim today, will place further financial strain on the rakyat – especially the middle-income group (M40).
The Muar MP’s concerns revolve around several “problematic” aspects of the budget, such as subsidy rationalisation and the increase in the sales and service tax (SST) from 6 to 8%.
Syed Saddiq pointed out that even daily transactions for Malaysians will be affected by this increase, with each transaction incurring an additional 2% in SST.
He suggested that this significant increase in living costs might lead the rakyat to question if the government is effectively reintroducing a goods and services tax (GST), which it had previously opposed.
“If you’re a Malaysian and you generally make 20 transactions in a day, each transaction will include the 2% SST increase.
“It’s not a small amount as this increase will definitely raise the cost of living. In this case, the rakyat has to question the government on whether the SST increase is just a front for GST.
“Previously, the government emphasised that they wouldn’t want to implement GST even though they said there’s a deficit around eight to nine billion.
“They said if you implement SST, you won’t get as much return as GST. And then, they increased SST. Perhaps, the deficit of income loss previously could be achieved with this 2% increase,” he told reporters in Parliament today.
Syed Saddiq also expressed his concerns about the increased allocation for the Community Communications Department (J-Kom), which falls under the purview of the Communication and Digital Ministry.
He highlighted the opposition’s previous objections to the creation of J-Kom, which was seen as a waste of taxpayers’ money for “cybertrooping” purposes. He found it contradictory that the budget now allocates tens of millions to J-Kom, including a 30% increase in emoluments.
Furthermore, Syed Saddiq questioned the notable increase in the allocation for the Prime Minister’s Office in the budget, describing it as “the biggest increase”.
He was not alone in this inquiry, as Pendang MP Datuk Awang Hashim also raised concerns about the RM7 bil increase in allocation for the Prime Minister’s Office. Both had sought clarification on the reasons behind this substantial increase.
Syed Saddiq said that Budget 2024 did not differ significantly from Budget 2023, aside from the increased allocation for administration, which now amounts to almost RM390 bil in total.
He also questioned the allocation for the Rural Development Ministry, raising the possibility of overlapping allocations with the Village Development and Security Committee and other community initiatives.
He expressed doubts about the rationale behind the RM2 billion increase for the Defense Ministry in the budget, particularly given what he described as a “bad track record” for the ministry.
Budget 2-24, unveiled by Prime Minister Anwar, has received a total allocation of RM393.8 billion, with a significant portion allocated to three key ministries – the Finance, Education, and Health Ministries – which collectively account for 42.3% of the total budget. – October 13, 2023