The think tank warned that billions of ringgit in revenue from GST which could be used for people’s welfare would be lost if GST was abolished.
“The GST is an efficient collection of revenue. Besides, government deficit has to be financed through an alternative source that will not increase our government debt burden in the long run,” said Adli Amirullah, a research coordinator at IDEAS.
Adli also criticised PH’s proposal to increase minimum wage and control rice import.
He said the minimum wage policy would not affect the low-income earners in the informal sector, who account for some 10% of total employment in the country.
“Given that most low-income earners are in the informal sector, they will not benefit from the policy to increase minimum wages. Thus, the policy will not achieve its objective in raising income level of the B40,” said the economist.
Adli said instead of restricting rice import, PH should focus on improving the productivity of local farmers.
He said restricting imports could be considered as quotas in international trade, adding that quotas are to protect infant industries or to protect strategic industries such as agriculture.
“Given that Malaysia is not self-sufficient in rice, and our relatively low productivity in this sector, restricting imports will lead to a higher price of rice in the long run,” Adli said.
Adli’s analysis is part of a detailed study by IDEAS on PH’s manifesto contained in Buku Harapan, which was recently launched by the opposition alliance for the 14th general election (GE14).
Meanwhile, IDEAS research member Aira Azhari welcomed the promises of reform and civil liberties to Malaysians.
She said the proposal to limit the prime minister’s term in office and empower Parliament, as well as other reforms affecting key government institutions such as the Malaysian Anti-Corruption Commission (MACC) and Attorney-General’s Chambers (AGC), are “issues that IDEAS has worked on for several years”.
“We are very glad that our policy proposals have been taken seriously by the PH coalition.”
She said abolishing laws such as the Sedition Act 1948 and the Printing Presses and Publications Act 1984 was a bold move to restore political freedoms.
“With these laws gone, Malaysians can finally participate fully in the democratic process without fearing for their freedom.”
IDEAS also welcomed the coalition’s promise to debate the performance of Bumiputera policies in Parliament.
“This is an important measure to ensure that whatever flaws in the policies are identified and rectified by the policymakers themselves. Only when these policies are debated openly and maturely, can we ensure that Bumiputera policies remain a sustainable measure to uplift the economic status of the Malays.”
Another IDEAS analyst, Wan Ya Shin is concerned with the financial feasibility of the PH manifesto as it promised to roll out numerous welfare aid to the people.
“Welfare states in developed countries generate resources from a high percentage of tax on income in order to fund the welfare aid. The level of welfare aid that Pakatan Harapan promises would need to have enormous resources to fund it,” Wan said.
http://www.freemalaysiatoday.com/category/opinion/2018/03/10/whats-lacking-in-pakatan-harapans-manifesto/