KUALA LUMPUR – The government’s fiscal deficit since 1998 has resulted in mounting debt for the current administration, hampering the implementation of new development projects intended to improve the lives of Malaysians, said Yang di-Pertuan Agong Sultan Ibrahim.
During his inaugural royal address at Parliament today, he also expressed his dismay that future generations may stand to inherit the economic burden.
“I personally will closely monitor the government’s spending towards ensuring that all expenditure proposals will be channelled to meet real needs.
“I hope that during my reign the government will succeed in achieving a fiscal surplus every year.
“Therefore, I support the government’s initiatives in undertaking drastic measures to save and in distributing targeted subsidies.
Sultan Ibrahim said there was a need for new policies to complement the existing ones, citing the Public Finance and Fiscal Responsibility Act 2023 – a reform initiative for improving governance, accountability and transparency in public financial management – as one such new policy.
He also called on Putrajaya to take a stern approach in preventing leakages and misappropriation of public funds.
Despite financial challenges, the King noted that the country’s economy grew by 3.7% in 2023 and remains sustainable, despite moderate performance in the global economy and international trade.
He said the national unemployment rate stood at 3.3% while inflation remained at 2.5% in 2023.
“Total investments approved in 2023 reached RM329.5 billion, creating more than 127,000 job opportunities in the same period. In terms of international trade, the country’s exports in 2023 stood at RM1.426 trillion.
“The country’s gross domestic product in 2024 is projected to be between 4% and 5% due to the measures and reforms announced during Budget 2024.”
The King, who expressed opposition to bureaucratic red tape, said the government machinery must also improve its efficiency and the integrity of work ethics to achieve successful economic development.
“I sincerely hope that enforcement agencies will be more expeditious and efficient in their investigations to ensure prompt resolutions of cases.”
Sultan Ibrahim also stressed that the success or failure of the country does not rest solely on the shoulders of the prime minister but is the responsibility of all 222 MPs who have been elected by the people to represent them in the government.
“All parties should be aware that the wellbeing of more than 33 million Malaysians is my utmost priority. Therefore, I hope that all MPs will focus their efforts on safeguarding the people.”
Malaysia had experienced an economic recession during the prime ministership of Tun Dr Mahathir Mohamad in 1988, which was marked by the depreciation of the ringgit.
Despite stabilising the local currency by pegging it to the US dollar at RM3.80, which provided the nation with a few years to recover, the country continued to grapple with fiscal deficits and mounting debts.
This was made worse during Datuk Seri Najib Razak’s administration (April 2009-May 2018) when the 1Malaysia Development Bhd financial scandal came to light, costing the government billions. – February 26, 2024