IPOH: A long-term fiscal consolidation strategy must be immediately considered as the government will be spending heavily next year, says Umno deputy president Mohamad Hasan.

       “Efforts to broaden the tax base like introducing the use of tax identification numbers are very timely.

       “The implementation of the Special Voluntary Declaration Programme for income and business taxes that were not or failed to be declared, should be introduced to help the country’s fiscal position,” he said in a statement yesterday.

       He stressed the importance of efforts to diversify the country’s revenue source, saying that Malaysia could no longer depend on petroleum-based revenue as it was projected to account for only 18.8% of total revenue in 2022.

       “Uncertainty in global oil prices will affect the country’s income and jeopardise overall fiscal sustainability,” he added.

       On Friday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz tabled a RM332.1bil budget for next year, surpassing last year’s allocation of RM322.54bil.

       Mohamad described Budget 2022 as inclusive and welfare-oriented.

       He cited as example the aid offered to children who have been orphaned by the Covid-19 pandemic, victims of domestic violence, disabled athletes, the Orang Asli and those with mental illness.

       “I hope all this assistance can lessen the burden of those badly impacted,” he said.

       Mohamad, however, said he was concerned by the lack of focus on restoring retirement savings in the Employees’ Provident Fund (EPF).

       “About 46% of EPF members under 55 only have less than RM10,000 in their savings. What will happen to those who are affected when they retire?” he said.

       The people’s well-being during retirement, if not addressed, would burden the government in the long run, he added.

       He said the government must ensure allocations under the Budget 2022 would be distributed effectively, transparently and promptly.