PETALING JAYA: The rising cost of living, economic concerns and a lack of funding for public services and ethnic minorities are among key issues the government will have to address in Budget 2024.

The Budget, the second to be tabled by the unity government, must deliver items on the rakyat’s wish list with people-first initiatives, say stakeholder representatives.

So far, the nine-month-old unity government seems to be fulfilling its pledge to reduce the cost of living, says Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah.

However, he said there was a need for long-term solutions on top of the subsidies, cash aid and programmes like the Rahmah initiative.

“The Rahmah programme is a good initiative and it’s helping the targeted audience get supplies at lower prices, but this cannot be done continuously as it will burn out the industry. We need a long-term solution,” said Saravanan.

On what needs to be done differently, Saravanan said food security measures must be addressed considering the country’s hefty RM60bil food import bill annually.

Consumer issues such as public transportation, affordable housing and better public healthcare coupled with improved policies and infrastructure, as well as more funding, must also be looked into for Budget 2024, said Saravanan.

Pitfalls such as neglecting ethnic minorities and underfunding small businesses must be avoided, say micro, small and medium enterprises (MSMEs).

Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) president Datuk Seri N. Gobalakrishnan said their wish list for Budget 2024 was an allocation of about RM300mil for business loans and another RM700mil for social development.

“When the Indian business community reached out to various governments before, often there were no loans or grants for them,” he said.

He said the only assistance was from the National Entrepreneurial Group Economic Fund (Tekun Nasional) and the Malaysian Indian Community Transformation Unit (Mitra), but this was insufficient.

“The RM100mil Mitra allocation (in Budget 2023) was very little, and thousands of people are fighting for it.” he said.

Gobalakrishnan added that the government must provide larger allocations for local companies to help them grow.

SME Association of Malaysia president Ding Hong Sing also said SMEs need more funding.

“We need incentives to help us with automation and digitalisation to increase output and grow our exports.

“Currently, our funding grants are insufficient, especially for microbusinesses,” he said.

Ding was also hoping for an interest rate below 2% for entrepreneurs who have no choice but to secure financing from banks.

“The main issue faced by MSMEs is cash flow, so lower interest rates would help,” he said.

Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said initiatives under Budget 2024 should focus on strengthening the competitiveness of the industry, especially SMEs.

He said the initiatives would need to mitigate the impact of the global economic slowdown and inflationary cost pressures while enhancing productivity with increased digitalisation and supporting green growth and sustainability.

He said bureaucracy has to be reduced while the cost of regulatory compliance should be kept low.

Good and effective governance and the quality of institutions must be strengthened.

“Besides reducing bureaucratic restrictions, efforts must also be stepped up to streamline, monitor and track investment processes.

“One-stop centres should be upgraded and enhanced to mitigate bureaucratic procedures or red tape,” he said.