More than 90 institutions forward input for Budget 2017 preparation

Speaking after chairing the Budget 2017 Consultative Council meeting at the Treasury here today, Najib, who is also Finance Minister, said the memorandums covered macro, sectoral and social issues.

He said the memorandums and discussions to follow will enable new ideas to be considered towards further accelerating efforts to transform Malaysia into a developed country and one that is inclusive and advanced by 2020.

"Every issue that is raised and proposal forwarded will be scrutinised and considered, and subsequently discussed at a meeting of the Focus Group to be held soon for the Budget 2017," he said.

Also present at the meeting today was Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, Deputy Finance Ministers Datuk Chua Tee Yong and Datuk Johari Ghani, Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah, Chief Secretary to the Government Tan Sri Dr Ali Hamsa, and Bank Negara Malaysia Governor Datuk Muhammad Ibrahim.

The Budget 2017 Consultative Council meeting, themed, Accelerating Growth, Ensuring Fiscal Prudence, Enhancing Well-being of the People, also saw the participation of more than 200 representatives from the private sector and NGOs.

There were seven speakers during the half-day session, namely, Maybank Investment Bank Chief Economist Suhaimi Ilias, RAM Ratings Head of Research Kristina Fong, Malaysia Digital Economy Corporation Chief Executive Officer Datuk Yasmin Mahmood, Tourism and Culture Ministry Secretary-General Tan Sri Dr Ong Hong Peng, Federation of Malaysian Manufacturers President Tan Sri Saw Choo Boon, Universiti Kebangsaan Malaysia Vice-Chancellor Prof Datuk Dr Noor Azlan Ghazali and Khazanah Research Institute Managing Director Datuk Charon Wardini Mokhzani.

Najib said the consultation council was another platform in the government's efforts to multiply engagement and discussions with the people, the private sector and NGOs to generate prosperity and wealth for the country.

"In essence, it reflects the need to balance promoting growth with ensuring fiscal sustainability.

"The ultimate purpose of this strategy is to protect the welfare and well-being of the people as well as empower them to realise their true potential," he said.

He said Malaysia must fully embrace the opportunities in Information and Communication technology (ICT), leverage the transformative power of science and technology, instill the spirit of innovation and creativity among entrepreneurs to further energise the domestic economy.

"There is talk about the Fourth Industrial Revolution, which depicts the digital revolution and characterised by the cyber physical system. The revolution is enabled by the popularisation of mobile devices, unprecedented processing power, storage capacity and access to knowledge.

"Thus, we need to capitalise on the digital and sharing economy that is becoming ever more important. These efforts will enable us to strengthen our growth momentum and be ready when the global economy fully recovers," he added.

Najib said Malaysia must also provide opportunities for people to reskill and upskill, as increasing the labour productivity rate is key to becoming a high income nation by 2020.

He said the government would continue with efforts to encourage women to take their rightful place in the workplace and in the boardroom.

"The private sector, NGOs and most importantly the people, must also play a vital role. We need to further strengthen that partnership, so that we are united in making Malaysia a better place for each and every citizen," he said.

Despite external shocks and lower oil prices, Najib said Malaysia registered growth of 4.2 percent in the first quarter of this year supported by strong economic activities, particularly private investment and consumption.

"At the same time, projects such as the LRT and MRT, the Petronas Refinery and Petrochemical Integrated Development (RAPID) Complex in Pengerang, Johor and the Pan Borneo Highway are not only still ongoing, but will support continued and increased growth in the future," he said.

Najib said the government remains committed to ensuring that its fiscal position remains strong and aims to achieve a fiscal deficit of 3.1 percent this year, lower than the 3.2 percent in 2015.

He said Malaysia also registered strong net inflow of foreign direct investments of RM15 billion in the first quarter of this year from RM9.9 billion in the same period last year.