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To date, four companies comprising the four subsidiaries
in MSM Holdings Berhad’s IPO have been divested. The
listing of Felda Global Ventures Holdings Sdn Bhd is slated
to happen in May 2012.
Public Finance Reform
The Public Finance SRI aims to reduce the Government’s
expenditure whilst increasing revenue. This will create a
fiscal space and budget surplus that will allow us to manage
contingencies, pay off debt and invest in the future.
20 initiatives were set out in the lab sessions. These are
clustered into six key thrusts: improving tax administration,
rationalising corporate tax incentives, transparent
procurement, controlling expenditure, accrual accounting
and introducing a broad-based tax.
The primarily focuses on increasing Federal Government
revenue are via improving tax administration and compliance
of both direct and indirect taxes. We estimate that some
RM1.94 billion will be collected in 2012 on top of the
conventional revenue projection made.
Let us reiterate: we are committed to introduce GST
(Goods and Services Tax) and continue rationalisation of
subsidies. Much of our national income now comes from
PETRONAS and is not sustainable. We need a broad-based
consumption tax, a tax levied on the value-added activities
by every operation along the delivery chain.
The GST will not impact the lower income group as most of
the basic products and services will be exempted or zerorated
such as rice, raw meat, fresh fish, vegetables, domestic
public transportation and healthcare services.
SMEs will be offered incentives to reduce cost of
implementing the GST. The estimated additional revenue
is RM6 to RM10 billion dependent on the GST tax rate of
four to five per cent.
In addition, we cannot continue with the current extent of
subsidies. We have previously said that the rationalisation
will be staggered over five to seven years. With the cost of
living issue coming out to the fore today, we have to take
that into consideration in the implementation. A balancing
act is key – reforming the public finance while ensuring that
we take care of the lower income group.
Public Service Delivery
This SRI is on track. Business Licensing Electronic Support
System (BLESS) which aims to make investing in Malaysia easy
will see 405 licenses abolished, and 271 simplified, before
being made available online. The current myGovernment
Portal will be enhanced to become the Single Online Portal.
In addition, BLESS will be incorporated into a single online
portal for greater accessibility to the business community.
To improve governance and promotion of efficiency, the
pilot for Real Time Performance Monitoring System for
five government agencies is expected to be implemented
in the second quarter of 2012. The pilot on the counter
service rating system was introduced at 82 police stations
in Selangor in 2011.
Narrowing Disparity
2011 Review of the ETP
Unit Peneraju Agenda Bumiputera (TERAJU) is the champion
of the Bumiputera Economic Transformation Plan, which
aims to enhance wealth creation for the bumiputeras.
One of the key drivers is the High Performing Bumiputera
SME Programme (TERAS), focussed on developing the
next generation of world-class entrepreneurs. To date,
30 SMEs have been selected to undergo the programme.
Concurrently, to encourage the implementation of
Bumiputera private sector projects, the Government has
allocated a RM2 billion Facilitation Fund to be managed by
the Public-Private Partnership Unit (UKAS) and TERAJU.
The Yayasan Peneraju Pendidikan Bumiputera, a private
education trust fund for specialised skills and training has
also kicked off with more than RM100 million in pledges. A
total of 12,000 scholarships will be made available.
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