Financial plan 2017: There should not be an unconditional use for BR1M, says market analyst

BR1M use should be restricted by the Government for the enhancement of skills, employment and for education purposes, said by Economist Yeah Kim Leng.
By doing this, it will be confirmed that the allotment for BR1M was consumed more competently.
While having a talk with FMT, the Professor of Economics at Sunway University Business School said if the BR1M cash handouts were restricted to skills enhancement, education, and employment, it would benefit those people who needed it more.
“If the people getting BR1M aid are spending the funds for useless purposes, then it will be really disappointing, as compared to those who are using it to learn some skills to secure their future”.
Most likely were discussing what the Government should do in the expected Budget to ensure the stability of the economic growth.
Restrict usage of the BR1M was a technique for increasing proposed allowances and cutting down of diffusions, he said.
In the past, BR1M faced lots of criticism that it didnít get succeed in helping people to pull up their financial burden and it was considered as a bribe, been given to the nation by the Government.
Talking about other solutions, he said, would keep spending in line to achieve the target of reducing the financial deficit of the country to 3% of the GDP for the next year, as planned.
“There are other areas as well, which needs Governmentís attention. The government must take measures and allocate well to the increase the standard of living of M40 and B40 households, who are currently facing financial problems, precisely in areas like medical, travelling, education and housing.
According to him, to create more job opportunities in the country and to get revenue, the Government should make the income tax segments and premium tax benefits and monetary allowances to increase endowments in Small and Medium Enterprises (SMEs).
Treasury Secretary-General Mohd Irwan Serigar Abdullah said that the ministry of Finance appealed the Inland Revenue Board to lead a cautious appraisal of the probability of taxing online businesses.
He said that the Government should keep on reducing its operational expenses to ensure the maximum allocation of the development expenditure, assuring that the efficiency of the civil service wasnít arbitrated.
On an alternate note, he said that as crude oil prices will face an increase in the next year, so the Government should gauge the prices of crude oil from $45 to $55, to prevent revising the budget later.
In January, the Government revised the budget after the reduction in the prices of crude oil to $30 from $48, when the budget was disclosed.
He also said that for the upcoming year, the oil prices for expected to be from $45 to $55 per barrel, with the probability of moving up to $60.
Prime Minister Najib Razak will lead the budget 2017 on Oct 21.


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