He accused Malaysian govt of being in denial.

KUALA LUMPUR - MALAYSIA'S opposition leader on Monday called for overhauling the country's budget for next year, saying government leaders are 'sleeping in broad daylight' while the global financial system is collapsing around them.

In a speech in Parliament, Datuk Seri Anwar Ibrahim said even Singapore, with a more robust economy, has fallen into a recession while Malaysia's government remains in denial with claims that its economy is strong.

The government would be hard pressed to generate funds to make the budget work, he said. 'They are not only dreaming but sleeping in broad daylight,' Mr Anwar said.

Prime Minister Abdullah Ahmad Badawi, who was not in Parliament for the debate, responded later by saying the Malaysian banking system is sound and not facing a liquidity crunch like banks in other countries.

The RM208 billion (S$87 billion) budget announced by Datuk Seri Abdullah in August promises higher development spending that is expected to boost the fiscal deficit to 4.8 per cent of gross domestic product this year and 3.6 per cent in 2009, from 3.2 per cent in 2007.

The budget also has a raft of populist measures including a reduction in personal income tax and higher pensions in addition to greater spending on improving rural infrastructure.

Mr Anwar noted that earnings from crude oil and palm oil, two of Malaysia's top income earners, are sliding because of a fall in global commodities prices.

Demand for other goods also are expected to fall in the US and Europe, which will hurt Malaysia's export-driven economy, he said.

'Enough is enough. Enough of this rot. Enough of this corruption,' he said. 'If the new finance minister is truly responsible, he must table a new budget.'

Finance Minister Najib Razak also was not in Parliament during Mr Anwar's speech.

Mr Anwar, who has vowed to overthrow the government with parliamentary defections, says the opposition can produce a much better budget by wooing foreign investment. He has also pledged to roll back multi-billion-dollar projects proposed by Mr Abdullah's government to cut the budget deficit.

Mr Abdullah defended his government's policies, telling reporters outside Parliament that Malaysia is 'not going into recession at the moment.'

'We have some very strong economic fundamentals. And we have very strong reserves. Our trade surplus is still strong... Our savings are also very high,' Mr Abdullah said.

'We have a currency that today is stable... Our banking system is still strong,' he said.

While the Malaysian stock market has fallen 35 per cent this year, there has been no panic run on banks.

Mr Abdullah recently handed over the Finance Ministry to Najib as part of a power transition.

Mr Abdullah is scheduled to step down in March 2009 after facing a virtual rebellion in his party for leading the government to heavy losses against Mr Anwar's three-party coalition in general elections last March.

- AP

Comments (7)

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written by Kathy, October 13, 2008 20:53:53

Why was Pak Lah speaking to the press outside Parliament? Why didn't he attend Parliament? Was he afraid to answer Anwar's probing questions? And where was Najib? Gosh, the lack of respect these two have for the institution of Parliament beggars belief!! And they ask to be respected!!

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written by ahmadneil, October 13, 2008 21:12:38

Najis absence is not a suprise becos he needs to consult with mahathir about how to open more swiss accounts.

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written by shangrilapeace, October 13, 2008 21:15:15

It is indeed a disappointment that the ex and current finance ministers are not present today in Parliament to argue the pros and cons of this budget. Hope it is not setting an example for others and most probably we will get to hear more in Parliament before Friday. Anwar's views are reasonable because about 8 countries closed their stock exchange the past few days. It is serious then.

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written by smeagrooo, October 13, 2008 23:46:24

PL to Najis : lu mau jadi PM lu jadi menteri kewangan dan uruskan masalah saya sementara i jadi menteri pertahanan dan uruskan kewangan anak dan anak menantu saya.

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written by mahendra5, October 13, 2008 23:49:55

Sdr.Anwar did a fine job in Parliament today. Where was the PM (AAB) and Najib who should have responded to Anwar's questions. Both were missing .What happened. How is Najib going to run the country? AAB says that Najib is the best replacement for him. That is AAB's version. Malaysians are all educated and they saw for themselves the presentation of Sdr.Anwar in Parliament Today.
Anwar's speech presentation details are found in many websites. He is the right man to be our next Prime Minister. He has the calibre and class. A very highly qualified personality known world over. Putting him down by all kinds of made-up stories can least influence the Rakyat. The more the PM puts Anwar down by using the Media, the more determined the Rakyat are going to be prepared to bring the Pakatan Rakyat to power in the next election. Sdr. Anwar is a family man, happily married To a Dr.Wan Azizah with smart children, one of whom is also a prominent MP. Comeonlah those guys who simply put our Sdr.Anwar down . Look at your own dirty back first. Quote - It is easy to find other peoples fault but very hard to find ones own, the lake can reflect the clouds and trees but the lake knows not its own depth. Malaysia is in urgent need of a Prime Minister none other than our Sdr.Anwar. God Bless Anwar and Family.

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written by DreamLady, October 14, 2008 00:52:11

najib knows he could not handle alot of juicy questions that he has to answer, but how long can he run away from Attantuya, her spirit is following him even when he is sleeping beside rosmah.....

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written by cubi76, October 14, 2008 08:23:50

Why are our Ex- and Present Finance Ministers all wrong?

Firstly, the budget was based on assumption that the crude oil would stay at around US120, and now it's around US80. Goldman Sach's analyst, once the most optimistic on oil price, has set target for crude oil averaging US85 amid unexpected weak demand from the crisis.

Remember that about one third of national income is from oil.

Secondly, Malaysian government predicted export would remain strong. Is this true and realistic?

We can see from last year export that apart from E&E, commodity-based especially palm oil, contributed big portion in our total export. Yes, our commodity export was strong, thanks to skyrocketing price in palm oil to over RM3000. But how much is the palm oil now? In last count, it was about RM1700. Down more than 40%!

Strong export base?

Let's see the E&E. The reality is, our E&E contribution to our export has been sliding year after year which implies that our competitiveness in E&E sector has been eroding. And now it comes the financial crisis.

Can it be true that our E&E export would not be affected at all?

Do our ex- and present Finance Ministers really think that the consumers in all major developed countries will continue the lavish life style and keep on buying Made in Malaysia products?

Look. Every leader in every country, from US to Europe, from India to Australia, Singapore, China, Jakarta, everyone is working round the clock to work on and prepares their country to face the crisis.

Ohh... Malaysia. Malaysia is still very strong. Malaysia will not be affected at all. Forget about the crisis.

I am speechless to see such a irresponsible remarks coming out from our government. Finance Minister cum Future PM.

Sometimes I really feel hopeless towards our nation.

"You dont have to believe in the government. You just need to believe in your country" - that's the only thing that kept me believing
_______________________________________
http://sustainablemalaysia.blogspot.com/

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