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Mr.
Speaker Sir,
I
beg to move the Bill intituled "An Act to supply
a sum from the Consolidated Fund for the service of
the year 2001 and to appropriate that sum for the
service of that year" be read a second time.
I. INTRODUCTION
1.
We are grateful to the Almighty for enabling us to be
gathered here today for the tabling of the 2001
Budget. We stand at the threshold of the first Budget
of the twenty-first century as well as at the
beginning of the Eighth Malaysia Plan and the Third
Outline Perspective Plan. As such, this Budget is
indeed crucial. This Budget goes beyond numbers and
statistics on our performance and budgetary
allocations. It underscores the implementation of
strategic plans that will propel us towards achieving
Vision 2020.
Strategic Vision
Interrupted
2.
The Asian financial crisis almost derailed us from our
goal of achieving developed nation status. We have
lost precious time and were forced to divert our
attention and utilise our scarce resources in
overcoming the crisis. The crisis was also a timely
wake-up call for some of us. Prior to the onset of the
crisis, our Gross Domestic Product (GDP) expanded at
an average annual rate of nine per cent during the
period 1987 to 1996 while inflation was contained at a
low level of 3.5 per cent. The nation was successful
in attracting a steady flow of foreign direct
investment.
The
manufacturing sector grew strongly by more than 14 per
cent. The Kuala Lumpur Stock Exchange (KLSE) was also
a major destination for international portfolio fund
managers. Market capitalisation peaked at 891 billion
ringgit in February 1997 while the banking system was
accredited as one of the strongest in the region.
3.
After two years, our economic growth has resumed and
rebounded to levels beyond our earlier expectations.
Today, many have come to accept and acknowledge the
Government’s ingenuity
in
formulating our own unique strategies and policies.
This success has indeed been a source of pride for us.
We received accolades from the academia, other
Governments and even the International
Monetary
Fund (IMF) and World Bank. Since the economy has
regained its growth momentum, we can once again resume
the implementation of strategic initiatives towards
achieving developed
nation
status.
Achievements
in the Pre-Crisis Period Towards Vision 2020
4.
Before the onset of the crisis, our progress towards
Vision 2020 was on track. We had clear objectives and
had invested substantially in the provision of modern
infrastructure such
as
the construction of highways and ports, the provision
of telecommunication services and public amenities. We
had balanced growth and this has resulted in a decline
in the incidence
of
poverty from 17.1 per cent in 1990 to 6 per cent this
year.
5.
We have launched several strategic initiatives,
including the establishment of the Multimedia Super
Corridor (MSC) as well as the bold initiative to
target technology and knowledge-based companies to
locate within an area provided with world-class
infrastructure facilities, attractive financial
incentives as well as legislative and regulatory
framework, tailor-made for the development of MSC. We
have embarked on building a new administrative centre,
Putrajaya; a multimedia centre, Cyberjaya
and
the Kuala Lumpur International Airport (KLIA), to
rival any airport in the world. The Government is also
committed to developing the nation as a regional
financial centre, strengthening the banking system and
developing the bond market, thereby further broadening
and deepening the nation’s financial market.
Moving
Ahead
6.
Although we have been meticulous in our preparation to
move ahead, we realise that the world economic
environment is undergoing drastic changes. We are
confronted with the challenges
of
globalisation, liberalisation and the digital wave, in
particular their implications on the nation’s
competitiveness. We need to review and update our
implementation plans to take into account the new
realities,
and where necessary, reformulate strategies. 7. The
world is witnessing, among others, trends in the
mergers of large conglomerates that now challenge the
traditional ways of conducting and managing
businesses. The advent of the knowledge-based economy
or K-economy is now a reality and
threatens
the conventional concept of comparative advantage. The
global technological revolution and the use of
information and communications technology (ICT) have
opened up prospects and
business
opportunities in various new fields. We accept
globalisation. We only need to be cautious and
vigilant in facing all the challenges and impediments
whilst preparing to seize the tremendous opportunities
that are emerging.
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