Economist is right…distribution is the issue. 4000 companies earning 95% of Malaysian national income and wealth

September 7, 2012

Analyst expects 2013 Budget to create balanced distribution of prosperity Analyst expects 2013 Budget to create balanced distribution of prosperity Kuala Lumpur: An economic analyst expects the 2013 Budget to focus on a balanced distribution of prosperity among the people, particularly low-income groups. Kuala Lumpur: An economic analyst expects the 2013 Budget to focus on a balanced distribution of prosperity among the people, particularly low-income groups.

Prof Dr Barjoyai Bardai said the main challenge faced by the government in preparing the budget was to strike a balance between revenue and public expenditure to enable it to become a productive financial plan.

He said although the government had been planning to reduce the budget deficit, it should be done gradually.

“The government is saddled by the need to reduce expenses while ensuring the budget benefit all,” he said an interview in the ‘Dalam Radar’ programme over Radio24 Bernama today ahead of the 2013 Budget to be tabled by Prime Minister Datuk Seri Najib Tun Razak on Sept 28.

Barjoyai, who is Universiti Tun Abdul Razak’s Academic Associate & Programme Director, Global MBA, said a range of incentives, facilities and assistance would be offered in the budget to reflect the government’s seriousness in continuing what was started.

He expressed his confident that the government was capable of balancing the country’s capability with the distribution of prosperity to ensure that the goal of achieving a developed nation status by 2020 would be met amid challenges posed by the sluggish world economy.

“Based on projections and programmes in sectors being focused, apart from foreign investment, the aim of achieving the per capita income of US$15,000 (RM49,000) per year by 2020 could be achieved within the timeframe,” he added.

Barjoyai said income distribution should be a common goal to achieve a high per capita income country as a study showed that the revenue posted by 4,000 companies in Malaysia accounted for more than 95 per cent of national income and wealth. — Bernama

Source: NST

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