CEO Morning Brief

King Backs Govt's Austerity Measures, Including Targeted Subsidies

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Publish date: Tue, 27 Feb 2024, 09:59 AM
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TheEdge CEO Morning Brief
His Majesty Sultan Ibrahim, King of Malaysia, and Her Majesty Raja Zarith Sofiah, Queen of Malaysia. Sultan Ibrahim on Monday expressed anticipation for the government's proactive implementation of reforms to enhance competitiveness, and achieve a sustainable economy in line with current needs.

"I hope that during my reign, the government will succeed in achieving a fiscal surplus every year," Sultan Ibrahim said.

KUALA LUMPUR (Feb 26): His Majesty Sultan Ibrahim, King of Malaysia, has expressed his support for the government's decision to implement austerity measures, including targeted subsidies, to alleviate the growing financial burden.

His Majesty conveyed his dismay upon learning about the increasing debt burden the government bears due to fiscal deficits since 1998.

"Such a weak financial position makes it difficult for the government to implement new development projects, or provide financial incentives to stimulate economic growth.

"Therefore, I support the government's initiatives in undertaking drastic savings measures, and in implementing targeted subsidies," Sultan Ibrahim said during the opening of the First Meeting of the Third Session of the 15th Parliament on Monday.

The king personally committed to closely monitoring the government's spending to ensure that all expenditure proposals meet genuine needs.

"I hope that during my reign, the government will succeed in achieving a fiscal surplus every year," Sultan Ibrahim added.

Sultan Ibrahim also expressed anticipation for the government's proactive implementation of reforms to enhance competitiveness, and achieve a sustainable economy in line with current needs.

However, the king reminded the government to provide attractive incentives and facilitate transactions through efficient governance, adapting federal-level policies to local situations, especially concerning the property development sector.

Despite significant improvements in the country's higher education system, Sultan Ibrahim highlighted that many high-quality graduates face a mismatch in job opportunities that align with their qualifications.

Consequently, His Majesty emphasised the government's crucial role in attracting high-value investments to create job opportunities with matching incomes.

"I call on all parties to leverage Visit Malaysia Year 2026. Malaysia’s chairmanship of Asean in 2025 will open up economic opportunities to generate new income sources, as well as promote the nation’s culture and heritage to tourists visiting this country," Sultan Ibrahim said.

Govt urged to formulate policies to enhance unity among races

Meanwhile, Sultan Ibrahim expressed concerns about the lack of unity among races after 60 years as a country, urging the government to formulate policies aimed at ensuring stronger and more harmonious unity among the people.

His Majesty called on all levels of society to strengthen national unity, and avoid inciting emotions by dwelling on race, religion, and royalty (3R) issues.

The King also stressed that the fact that the Federal Constitution is the supreme law of the land must be respected, as this was the result of the agreement among the Malay rulers to establish a federation, and to empower Parliament to enact laws.

"The Federal Constitution recognises Islam as the religion of the federation, and this will continue to be preserved. However, other religions can be practised in peace and harmony, but they should not be used to proselytise Muslims.

"Therefore, there should not be attempts by any party to manipulate and politicise this basic foundation of the Constitution," Sultan Ibrahim said.

Source: TheEdge - 27 Feb 2024

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