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Sunday, 25 October 2015

Assalamualaikum: Islamisation of Malaysia

The role and impact of Islam in Malaysian politics

In his latest book, former law minister and current opposition party member Zaid Ibrahim explores the nature of political Islamisation and what it means for Malaysia. Photo: The Star/ Izzrafiq Alias

Assalamualaikum: Observations On The Islamisation Of Malaysia



Zaid Ibrahim is quite a character. Lawyer-turned-government-minister-turned-opposition-party-member, and he had time to head his own political party on top of that. That’s quite a CV. That’s someone worth having a teh tarik with.

For the time being, we have to make do with Assalamualaikum, his latest collection of essays exploring the contradiction between the laws of God and the laws of man in Malaysia. Subtitled “Observations on the Islamisation of Malaysia”, it gives a strong indication which side of the fence he sits on.

As with most books, it starts at the beginning, with a brief history of Islam in Malaysia. He focuses on some history in there, and says that Malaysia has now adopted “political Islam”, influenced by a Saudi Wahhabism style. He then contrasts this with practices and policies in other Muslim countries, some of which would also claim to be Islamic despite also seeming more liberal.

The impact of this politicisation is explored further in the second chapter entitled “Education, culture, economy”. It is a sober (some may say “cynical”) view about what happens when you mix religion and politics, and his points are fired as a broadside. “In Malaysia,” he writes, “Islamisation has been the main cause of the deterioration we have seen in our education standards.”

On the cultural transformation in Malaysia, he bemoans the loss of local cultures and festivals since they have been deemed “not Islamic”. He writes, “(Islamists in Malaysia) think that if Malays can remove all traces of the past and embrace Wahhabism, then their world will be truly Islamic. This is what Pol Pot in Cambodia believed too.”

The third chapter is on Shariah law in Malaysia and its apparent clash with the Federal Constitution. Being a lawyer, he delves into some detail in what he sees as a deterioration of the ideals laid out in the Federal Constitution, aided by the willingness of the courts to bow to their political masters (despite the theoretical separation of powers that exists). He posits that Islam has been used as a political tool, writing “it is clear that in Malaysia, the authorities have the power to use Islam as a means of controlling Muslims”.

By the time we reach the book’s conclusion, he presents a sentiment that could apply to any religion: “Islam is perfect, but humanity is not”.

As it is, this book gives a good overview of the role and impact of Islam in Malaysian politics, even if it is intrinsically biased. Unfortunately, in the same way that the author criticises some Islamists as being broad in their understanding but without much depth, Assalamualaikum doesn’t really give the reader great insight into its issues. Apart from some ideas in the chapter on law, things are just boldly stated and are expected to be taken at face value.

Perhaps this apparent brevity is understandable given that it is a collection of essays that cover many topics quickly. But what is truly unfortunate is that it feels like we have not been given the full benefit of the author’s political experience.

This is somebody who has stood on both sides of the political divide, and was even the Law Minister at one point. He would have been privy to a large number of internal debates on the issues and might even have helped shape policy.

From my experience working on projects involving government agencies, what most people understand of how public policy is formed is almost always wrong. What can seem callous and short-sighted is in fact usually tempered by a hundred factors – pressure from conflicting parties, horse-trading to gain benefits elsewhere, even sometimes just the accident of being at the wrong place at the wrong time.

Much happens out of view, and Zaid must have seen and argued about issues and policies. But he gives almost none of this away.

And when it comes to answering, “What next?” – when his experience would have counted for the most – he chooses not to say anything except to keep fighting the bad ideas and keep talking about the good ones. Apart from his encouragement to support Parti Amanah Nasional in the very last paragraph, there is nothing concrete about how to move forward.

Perhaps Zaid is silent about this because he feels constrained by decorum. Or the Official Secrets Act. Or because he has taken so many sides and seen so many contradictions, that the only opinion he can give with confidence is his own.

Perhaps this is not the last we will hear from him on the subject. I believe he has the eloquence and knowledge to better explain the state of Muslims in Malaysia than is shown in this book. I’ll happily take that, even if it is over a teh tarik.

Review by Dzof Azmi The Star

Zaid: We can be more moderate


Malaysia can be a Muslim country other Muslims can be proud of but first, that opportunity must be taken.

DATUK Zaid Ibrahim takes on critical questions with his latest book, Assalamualaikum: Observations on the Islamisation of Malaysia.

As promised in the jacket blurb, the former de facto Law Minister explores the nature of political Islamisation, its origins, its chief personalities, how it has grown and what it means for Malaysia.

Instead of introducing the religion’s true moral and ethical frameworks, he writes in the preface, Islamisation proposes “to replace them with harsh criminal punishments for Muslims whom the ulama regard as deviationists. Human rights and dignity suffer as a consequence.”

The founder of the largest law firm in the country told Sunday Star he doesn’t understand, for example, why the Syiah are ­treated as enemies of Islam and not proper Muslims, although they are allowed to perform the pilgrimage to Mecca.

“I don’t remember Islam recognising all these categories,” he says. “A Muslim is a Muslim.”

And in the Quran, he points out, “there are a lot of verses about freedom of expression, which remind people that only God knows best. We must be humble enough to accept we can be in error.”

The only way to have a vibrant Islam is to allow an interflow of ideas, he says, but Muslims in Malaysia are not allowed to give public talks about religion without tauliah approved by the Federal Government.

“Even laws of Parliament can be questioned but you can’t do that with religious authorities,” says the lawyer with over three decades of experience.

And if there’s any action taken by any religious department or the syariah courts or there’s any violation of civil liberties or improper conduct, he adds, “the civil courts will not hear anything about it on the grounds that they have no jurisdiction”.

He lists the reasons cited: Islam is the official religion. Article 121(1A) of the Federal Constitution provides that jurisdiction of civil and syariah courts is separate. And the Constitution does say that Parliament can limit some of the fundamental liberties.

“Our Federal Court is no longer willing to look at whether those limitations are reasonable,” he adds.

Since Islam is a state matter, every state is allowed to legislate on Islamic matters but, Zaid says, “there is no common definition of what is unIslamic, what is hukum syarak”.

For example, Selangor and Penang have gazetted fatwa that smoking is haram and Selangor, Pahang and Penang have issued fatwa declaring Amanah Saham Bumiputra and Amanah Saham Nasional as haram.

“There is a lack of uniformity and yet these diverse personalities controlling the state can impact on your basic liberties and basic rights,” he says.

“There has to be precision and specific meanings. You cannot say it is whatever the authorities decide, because you also have a duty to protect the Constitution, human rights and dignity.”

Coming from Kelantan, Zaid writes about Puja Umor and Puja Pantai, which were later banned.

“If you want to insulate yourself against extremism and violence like Islamic State’s,” he argues, “you must allow people that freedom to cultivate and base themselves in their culture and tradition.”

He wrote the book, he says, in the hope of encouraging “an Islam which is kind, forgiving, compassionate, wants to live with everyone in peace and cares about the welfare of others and not only personal interest. That should be the guiding force of the country.”

If that kind of Islam shaped the laws, he says, “our laws would then become more open, liberal-minded and more inclined towards encouraging freedom of thought which is what Islam, at least in its golden years, is about”.

But so far, Malaysia has abandoned its chance to showcase a truly Islamic renaissance, Zaid believes.

“We could have built a moderate Muslim country other Muslims could have been proud of, but we have not taken that opportunity.”

By Santha Oorjitham The Star

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China-Britain bilateral relations in Golden Era


Putting economics first

Despite Britain’s role as the closest US ally, its leaders have surprised the world by surging forward in relations with a rising China.

FOR centuries, relations between Britain and China have been undulating, rising rather more than declining.

In that time, Britain has been more ­anxious to penetrate Chinese markets and forage for what China has to offer than the other way round.

The Queen and Chinese president Xi Jinping are driven by carriage along The Mall to Buckingham Palace Photograph: POOL/Reuters

The super-gala treatment that President Xi Jinping and Mrs Xi received in London ­during the week was not necessary to prove the point, but it helps. There was Xi, royally seated next to the Queen, in the gold-trimmed horse-drawn royal carriage parading through London and shown on television screens around the world.

The visiting presidential couple also lodged at Buckingham Palace, the Queen’s official residence, during their trip. Clearly, this was no ordinary state visit.

The Queen called the visit “a defining moment”, Prime Minister David Cameron called it “a golden era”, and Chancellor of the Exchequer George Osborne called it “a golden decade” for their bilateral relations.

An array of gilded items were spread among the vast gilt-edged dining chairs for Xi and his host, the Lord Mayor of London, at the second banquet after the Queen’s.

Gold, the auspicious colour in Chinese culture, went well with the red of the carpet and the Chinese flag.

And Britain was only too happy to oblige.

This was Xi’s first state visit, coming a full decade after his predecessor’s, Hu Jintao’s. But British leaders had been somewhat more proactive.

Only a few years ago, hiccups in relations occurred after British officials stumbled over such sensitive issues for China as the Dalai Lama. After the ruffles were smoothed over came the slew of mega business deals.

Britain wanted to ensure those deals were on and Xi’s state visit would seal them, so Osborne was dispatched to Beijing last month. To make doubly sure he made a side trip to Xinjiang, the alleged epicentre of China’s human rights violations, to talk trade rather than human rights.

China critics condemned that move. But it paid off for Britain in Xi’s high-powered four-day visit and all that it represented and contained.

On Tuesday, China’s Central Bank issued its first offshore renminbi bond in London. On the same day, Cameron appointed Chinese tycoon Jack Ma to his business advisory group. The next day, deals were signed amounting to £40bil (RM260bil), generating nearly 4,000 jobs in Britain. And this was only the beginning.

Critics tend to underrate the importance of business success for both Britain and China. They are perhaps the most enduring of the world’s major trading nations, Britain historically and China in the past and the future.

Even before becoming “the workshop of the world”, Britain had embarked on a glo­bal empire that would span centuries. It lost its sparkle after the Second World War and decolonisation.

British interest in East Asia had centred on China, particularly trade with China. Even its presence in Borneo – Brunei, Sabah (British North Borneo) and Sarawak – were only as a staging post for trade with China on sailing ships and steamships.

The British phrase “not even for all the tea in China” is a measure of one’s resistance to temptation. And tea was only one of many traded items from China.

With the colonial period, parts of China were tugged and torn by European, Russian, US and Japanese imperial powers. China fought and lost two “opium wars” and suffered unequal relations with Britain.

Then they agreed on the return of Hong Kong to China in 1997. But even decades before that date, the buzz in Britain was what would happen to Hong Kong after the “handover”.

Hong Kong had long been known as the world’s classic capitalist enclave, while in the 1990s the West still regarded China as a communist state.

Hong Kong was in quiet panic, as celebrities and stars worried what would happen to them and their work under communist rule.

Many contemplating migration purchased homes abroad from Vancouver to Kuala Lumpur. Jackie Chan bought a luxury condominium in Damansara Heights.

At the time, an Englishman from off the streets in central England put that crucial question to me: What would happen after China “takes over” Hong Kong? I replied that Hong Kong would instead take over China in many ways that mattered. Soon after 1997, Deng Xiaoping’s credo of “it’s glorious to be rich” was abundantly clear throughout the land, often excessively so.

In time, anxieties over the handover were soothed, and it ceased to be an international issue. After moving to the United States and working in Hollywood, Chan returned to Hong Kong and even began work in China itself. His trajectory has been instructive and symbolic. So his presence as an invited guest at a reception for Xi in London’s Lancaster House on Wednesday evening said it all.

While London and Beijing are only too happy to see their relations on the upswing again, their critics have been at work. They have called Britain’s grand welcome for Xi fawning and embarrassingly servile.

Western criticism comes from two broad angles: the US and Europe. Both are not without their own self-interests.

In the European Union, Germany has been an early and the most extensive investor in China. Then earlier this year, Britain stole a march on all other Western countries by signing up as an early co-founding member of the China-led Asian Infrastructure Investment Bank (AIIB). After that, other US allies joined in: several EU countries including Germany, as well as Australia, New Zealand and Singapore. The US, which tried hard to stop the trend, had only Japan and Canada as recalcitrant holdouts for company.

Many Western and pro-Western countries are happy enough to do business with China in the lead, in the process helping China grow. This is despite strategic thinkers knowing that the AIIB is also a means for extending China’s reach through Central Asia and Russia to the West.

This takes the form of the infrastructure-­heavy Maritime Silk Road and the One Belt, One Road projects offering connectivity between East Asia and Europe. They possess both economic and strategic advantages.

US critics of Britain’s close partnership with China have something of an identity crisis. They have a long list of complaints against Beijing, yet they cannot stop their own corporations doing increasing business with China.

Worse still, the glittering welcome accorded to President and Mrs Xi in London compares too favourably with the one in Washington just weeks before.

Beyond some formal diplomatic niceties, President Obama reportedly threatened to impose sanctions on China. He also remains committed to the largely military “rebalancing” in China’s backyard, while keeping China at bay with the Trans-Pacific Partnership proposal dividing East Asia.

Whether the British or US approach to working with China is better, and for whom, also depends much on which is more enduring. Britain had presided over a global empire for centuries. China, a global superpower before, has millennia of experience to draw on.

Both countries share the approach of making trade their primary purpose, with any political or military posture being secondary to protect those economic interests.

The US in contrast opts for a forward military posture abroad, with any economic interest secondary by comparison. And despite Pax Americana being only 70 years old, it is already showing signs of wear.

By Bunn Nagara, who is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia - The Star

Open, inclusive partnership exemplary for development


China's President Xi Jinping and Britain's Prime Minister David Cameron attend a joint press conference in 10 Downing Street, in central London, Britain, Oct 21, 2015.[Photo/Agencies]

President Xi Jinping's pledge that China and the United Kingdom will build a "global comprehensive strategic partnership" in the 21st century will bring China-UK relations to a new level and endow their ties with a significance that goes beyond the bilateral scope.

In his talks with British Prime Minister David Cameron on Wednesday, Xi described the upgraded China-UK partnership as opening up a golden era for an enduring, inclusive and win-win relationship that will enable the two sides to jointly create an even brighter future for their relationship.

The noticeable improvement in China-UK ties has been the result of the strong political will from both sides to transcend their differences and shore up mutual respect, reciprocal cooperation and mutual learning.

During Xi's ongoing visit to the UK, the two sides have signed a number of intergovernmental and business deals worth about 40 billion pounds ($62 billion), including an eye-catching agreement that means China will partly finance a UK nuclear plant.

This nuclear project will be China's first in the West, and according to Cameron, it will create thousands of jobs in the UK and provide reliable, affordable energy to nearly 6 million homes when operational.

Such fruitful results show China and the UK are substantiating their cooperation with concrete deals. And as Cameron has said, a strong economic relationship can withstand frank disagreements on some other issues.

With the UK pledging to be China's best partner in the West and China looking to build a golden decade with the UK, the two sides have set a good example in developing ties between a major developing country and a major Western power.

Xi has stressed the open and inclusive nature of the China-UK comprehensive strategic partnership, which means the stronger bond between Beijing and London does not target any existing alliance or partnership the two have forged with other countries.

Under the principle of voluntarism, the partnership can be expanded to include other partners so as to bring benefits to more countries.

The quick reconciliation and warming of bilateral ties would not have been possible if the two sides had not deepened their mutual understanding, built mutual trust and committed to reciprocal and meaningful interaction.

We have every reason to believe China and the UK will continue to build on the current good momentum in their relations, which will not only cater to their interests but also contribute to the common prosperity of the entire world. - China Daily

Xi trip success narrows divide with West


In the 1950s, China's stated aim was to surpass the industrial achievements of the UK, which however failed. Decades later, the UK welcomed Chinese President Xi Jinping with pomp and pageantry and announced the two countries were entering a "golden age." China has roughly overtaken the UK in gross GDP, although the living standards of the Chinese still lag far behind the British.

During Xi's stay, China and Britain signed contracts worth 40 billion pounds ($61.62 billion). London will become the top offshore yuan center apart from Hong Kong. The UK also adopted measures to relax visa rules for Chinese tourists. These combined give people more faith in the comprehensive strategic partnership between China and the UK.



The embrace of China and the UK with open arms primarily proves that the West's economic alliance designed to counter China does not exist or has been overthrown. Economically, the West has more noncompliance than consent across the board to challenge China. Militarily, the West has NATO at the core, but inside it is still not united enough to pressure China. China's military pressure mainly comes from the US-Japan alliance, which is trying to involve smaller countries around China to enhance the deterrence. As China's economic development has bolstered its military might, it has increasing confidence in safeguarding the country's security.

The UK seems to have distanced itself from the Western group that may threaten China and explicitly wants to befriend us. As an important member of the Western world, the UK's decision to usher its ties with China into a "golden age" has symbolic significance.

But when it comes to ideology, the old divide comes up again between China and the West. Over political and values conflicts, countries like the UK, Germany and France, which endeavor to advance their bonds with China, return to the Western formation.

The external ideological pressure is one of the thorniest issues for China currently, and has huge influence on China's domestic values debate.

Common values have been the prominent bond in the West after WWII, but it is definitely not omnipotent. The divergence on values is the biggest difference between China and the West, which requires mutual respect and will to accept. We often feel the West is arrogant and aggressive in terms of ideology, which may partly come from a sense of insecurity due to internal divergences.

The UK mirrors our own changes and informs us that the times when the outside world united to counter China have ended or never existed. But there is still a long road before disputes on ideological issues between China and the West can be solved. Yet we have more achievements and hopes in this regard than difficulties and uncertainties. Compared with the huge pressure from the West in the past, we have gone so far and clearly know our future path. - Global Times

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State of Malaysian economy: to grow 4~5% in 2016, lead by domestic demand



PETALING JAYA: The Malaysian economy is expected to remain steady in 2016, with real GDP growth between 4% and 5% led by domestic demand, according to the Economic Report 2015/2016 drawn up by the Ministry of Finance (MoF).

Private sector expenditure will remain the main driver of growth with private consumption and investment expected to grow by 6.4% and 6.7%, respectively.

The government also remains committed to fiscal consolidation, with the fiscal deficit expected to further decline to 3.1% of gross domestic product (GDP) in 2016 (2015:3.2%) while the Federal Government debt level will remain manageable with the prudent limit of 55% of GDP.

Meanwhile government expenditure is forecast to expand, albeit at a moderate pace, in line with efforts to strengthen the fiscal position.

On the supply side growth is expected to be broad-based, with all the sectors registering positive growth, the MoF said.

Malaysia's external position is forecast to remain positive supported by better prospects for global growth and trade.

Against this backdrop, the nominal gross national income (GNI) per capita is expected to increase by 5.6% from RM36,397 in 2015 to RM38,438 in 2016.

With total investment surpassing savings, the savings-investment gap is expected to narrow between 0.5% and 1.5% of GNI.

The economy will continue to operate under conditions of full employment with the unemployment rate remaining below 4%.

Despite the weak ringgit, inflation is expected to remain benign attributed to low oil prices and the waning impact of GST.

For 2016, inflation is expected to range between 2% - 3%.

Slower GDP growth in 2016

THE Malaysian economy is expected to grow between 4% and 5% in 2016 as domestic demand is expected to offset the drag on the economy from a slowdown in growth in emerging markets, particularly China.

Lower commodity prices, depreciating currencies in emerging markets and volatility in financial markets will be hurdles to economic growth but that will be counterbalanced with activity by the private and public sectors..

“Strong economic fundamentals such as benign inflation and stable employment supported by accommodative monetary policy are expected to support growth,” says the report.

Private investment is expected to rise by 6.7% with higher investment by the manufacturing and services sectors.

Private consumption is expected to rise by 6.4%, aided by stable employment and favourable wage growth. In the public sector, public expenditure is expected to grow by 2.7%.

Public investment is forecast to grow by 2.3%. Public consumption is expected to increase by 3%.

The services sector is projected to grow by 5.4% and see its share of GDP increase to 54% with all subsectors posting growth.

The information and communication subsector is projected to grow by 9.6% and real estate and business services subsector by 7.1% aided by construction activity while the transport and storage subsector is projected to grow by 5% helped by the expansion in port and rail services, along with improved bus services.

Manufacturing is projected to grow by 4.3% aided by growth in advanced economies.

The agriculture sector is forecast to expand by 1.3% with improvement in the plantation sector and stronger growth in the food commodity subsector.

Production of crude palm oil is expected to grow by 1% to 20.1 million tonnes and rubber by 0.7% to 680,000 tonnes.

Malaysia is expected to register a smaller current account surplus with gross exports anticipated to increase by 1.4% led by manufactured exports.

Gross imports are expected to turn around and grow at a faster pace of 3% supported by higher public investment and capital spending in the manufacturing and services sectors.

Import duty exemption on 90 tariff lines in the manufacturing sector is expected to provide relief to about 900 companies.

Stable wage growth and employment prospects are expected to support demand for consumption goods and as import growth rise faster than exports, the trade surplus is projected to be lower at RM73.2bil of 5.9% of GDP compared with RM85.3bil in 2015.

For 2016, the transport and other services accounts are expected to remain in deficit following improved prospects for trade-related and investment activity. The surplus of the travel account is projected to grow to RM33.9bil from RM29.8bil driven by higher tourist arrivals.

Malaysia is expected to register a smaller current account surplus with gross exports anticipated to increase by 1.4% led by manufactured exports. Gross imports are expected to turn around and grow at a faster pace of 3% supported by higher public investment and capital spending in the manufacturing and services sectors.

Stable wage growth and employment prospects are expected to support demand for consumption goods and as import growth rise faster than exports, the trade surplus is projected to be lower at RM73.2bil of 5.9% of GDP compared with RM85.3bil in 2015.

The services account is expected to improve to RM11.4bil from a deficit of RM14.7bil in 2015.

With higher imports projected, the goods and services account is envisaged to post a lower surplus of RM63.7bil.

The primary account is expected to register net outflows of RM33.7bil in 2016 from RM33.2bil due to higher repatriation of profits, dividends and interests accuring to multinational corporations in Malaysia.

The secondary income account will still be in deficit amounting to RM18.7bil mainly due to sustained demand for foreign labour.

As inflows will be larger than outflows, due to the surplus in the goods and services account, the current account is forecast to be in a surplus of between 0.5% and 1.5% of gross national income.

State of the Malaysian economy



THE economy is expected to grow at a lower pace next year compared with 2015 as the government projects slower growth in the manufacturing, services and construction sectors.

The report said GDP was expected to expand between 4% and 5% in 2016 compared with the 4.4% to 5.5% growth estimated for the current year.

Domestic demand was expected to offset the drag on the economy from a slowdown in growth in emerging markets, particularly China.

Lower commodity prices, depreciating currencies in emerging markets and volatility in financial markets will be hurdles to economic growth.

However, these would be counterbalanced with activity by the private and public sectors, with private expenditure the main anchor while public expenditure will increase moderately.

To boost the economy, the Government has raised allocation for development spending by 6.1% to RM49.2bil, while operating expenditure will remain at RM215.2bil.

The increase in spending will be matched by higher revenue in 2016 forecast at RM225.6bil. The fiscal deficit in 2016 is projected at 3.1% of GDP.

Trade surplus is projected to be higher in 2015 at RM85.3bil, or 7.3% of GDP.

Debt level



The level of Government’s debt is projected to increase RM627.5bil, or 54% of GDP in 2015 from current RM582.8bil last year, or 52.7% of GDP. Household debts level remained high at 88.1% of GDP at end of August, up from 86.8% of GDP at the end of 2014.

Fiscal consolidation

The government will continue its fiscal consolidation in 2016 as it seeks to achieve a balanced budget by 2020 but it acknowledges there will be challenges from external sources.

It emphasises that while it ensures strong public finances, fiscal policy will continue to support economic growth and improve the people’s well being.

“With all the measures in place, the fiscal deficit is projected at RM38.8bil or 3.1% of GDP in 2016 (2015: 3.2%),” it said.

The fiscal deficit has come down from 6.7% in 2009 to 3.4% of GDP in 2014.

Revenue collection



The government expects revenue to increase by 1.4% to RM225.70bil due to higher tax revenue.

For instance, collection from oil-related revenue is expected to increase by 1.7% to RM265.2bil (2015: RM260.7bil).

Due to the implementation of the managed float fuel pricing system, subsidies, incentives and assistance will remain low at RM26.1bil (12.1%), reflecting a more targeted subsidy mechanism to reduce market distortions and leakages.

GST



The government projects to collect RM39bil from the Goods and Services Tax (GST) in 2016 – which is about 3.1% of the GDP as it seeks to achieve a balanced budget by 2020.

Since the GST was implemented in April, collection was RM27bil, higher than the earlier projection of RM21.7bil.

For 2016, GST’s collection will reflect a full 12-month of the tax implementation that had replaced the Sales and Services Tax (SST).

The higher collection will offset the contraction in oil-related revenue that has been the main revenue source for the Government.

Inflation, employment



Inflation rate is expected to increase from 1.9% in 2015 to between 2% and 3% in 2016.

However, the government expects the unemployment rate to decline from 3.1% in 2015 to 2.9% in 2016.

Strong economic fundamentals such as benign inflation and stable employment supported by accommodative monetary policy are expected to support growth.

Medium-term fiscal framework



The government also announced under the medium-term fiscal framework (MTFF) for 2016 to 2018, its revenue was estimated to be RM729.50bil.

The projection for the three years was based on the assumption that US light crude oil would be between US$48 and US$60 per barrel and oil production to be 600,000 barrels per day.

On Friday, US crude oil was trading below US$46, which is sharply lower than the near US$100 in July 2014.

The three-year framework expects non-oil revenue to be RM631.60bil and non-oil revenue RM97.9bil.

The government’s operating expenditure is expected to be RM685.7bil during the period and gross development expenditure RM153bil.

http://www.thestar.com.my/Business/Business-News/2015/10/23/The-very-rich-to-pay-more-income-tax/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Business-highlights-of-Budget-2016-proposals/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Slight-increase-in-Federal-Government-revenue/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Govt-sees-oil-trading-US$48-to-US$60-in-2016-to-2018/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Domestic-demand-to-drive-GDP-growth/?style=biz

http://www.thestar.com.my/Business/Business-News/2015/10/23/Business-highlights-of-Budget-2016-proposals/?style=biz

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