The Ministry of Finance (MOF) revealed that it has published four public consultation papers (PCPs) in an effort to improve the preparation process for Budget 2022, as well as invite the public to share their ideas for the national annual budget.

According to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, the PCPs are intended as a complement to the maiden Pre-Budget 2022 statement that was recently shared. “For a start, four public consultation papers will be published to obtain inputs towards Budget 2022,” he said.

Specifically, the four PCPs that will be published include:

• Improvement of the Government Procurement Policy on Local and Goods/Services and Procurement Policy for the Bumiputera
• Improvement of Cash Assistance Programmes
• Review of Tax Incentives
• Drafting of the Fiscal Responsibility Act (FRA)

With regard to the purpose of each paper, Tengku Zafrul said that the first PCP (Improvement of the Government Procurement Policy on Local and Goods/Services and Procurement Policy for the Bumiputera) highlights proposals to improve the use of local goods and services, and the affirmative policy for Bumiputera companies. “This is aimed at, among others, protecting and developing local industries as well as reducing dependency on imported goods,” he said.

The second PCP (Improvement of Cash Assistance Programmes), on the other hand, will look at identifying the people’s needs, as well as current gaps and challenges in delivering financial aids to them. This is especially so during the ongoing difficult period brought on by the Covid-19 pandemic.

As for the the third PCP (Review of Tax Incentives), Tengku Zafrul said that it will look at reviewing the overall investment tax incentive framework, ensuring that incentives for investors continue to remain relevant. “The review is also intended to enhance the country’s overall competitiveness in attracting quality investment, which in turn would generate economic growth, support job creation, and strengthen the country’s fiscal position,” he said.

Lastly, the final PCP (Drafting of the Fiscal Responsibility Act) will seek to improve the governance, transparency, and accountability of Malaysia’ fiscal management. It encompasses the management of revenue, expenditure, as well as debt and fiscal risk. This is in addition to the publication of pre-budget and post-budget reports, economic forecasts, and the Medium-Term Fiscal Framework.

Similar to the sharing of the Pre-Budget 2022 statement, the publication of these PCPs is also a first-time effort for the ministry. Tengku Zafrul said MOF is confident that these papers will provide more avenue for all stakeholders to provide feedback and contribute to formulating a budget that is well-aligned to the needs of the people, as well as Malaysia’s policies and objectives.

The public can download all four PCPs and submit their feedback on MOF’s official website by 15 September 2021 (5pm). If they have any enquiries or requests for additional information, they can also contact MOF via email at [email protected].

(Sources: MOF, The Sun Daily)

• TAGS:
• Budget 2022
• Budget 2022 Public Consultation
• Budget 2022 Public Consultation Papers
• Pre-Budget 2022 Statement
• Tengku Zafrul Abdul Aziz